MCD Stock Recent News

We???ve got several well-known restaurant operators on the reporting docket this week, a list that includes Cheesecake Factory and Texas Roadhouse.

Bill Gates could have been the world's first trillionaire if he had never sold any shares of his Microsoft (NASDAQ:MSFT) stock.

After a period of heavy inflation left quick-service restaurant prices elevated, McDonald's (MCD -0.47%) has decided to lean into value meals. In fact, on its recent fourth-quarter earnings call, the company used the word "value" or a variation of the word "affordable" more than 50 times.

McDonald's focus on value offerings and digital ecosystem, including loyalty programs, supports long-term growth both in the U.S. and globally. Margin prospects are positive, with improvements expected due to non-recurrence of E. coli expenses and leveraging increased sales. Trading at a discount to its 5-year average P/E with a 2.28% dividend yield, McDonald's is a good buy.

Restaurants have notoriously low profit margins. But McDonald's (MCD -0.47%), the world's largest restaurant chain, is surprisingly one of the most profitable businesses.

U.S. Health and Human Secretary Robert F. Kennedy Jr. told Fox News on Thursday McDonald's ought to be incentivized to use beef tallow when making its Big Mac burgers.

On February 10, McDonald's (NYSE: MCD) released its Q4 2024 earnings report, which showed mixed results. While the company's adjusted earnings per share (EPS) of $2.83 met analysts' expectations, its quarterly net revenues of $6.388 billion fell short of the consensus estimate of $6.477 billion.

The technicals are strong for McDonald's stock as the chart, moving averages, and indicators all showed bullish signals overall. Most recent earnings do not show a clear recovery in growth, as revenue growth turned marginally negative and EPS growth is flat at zero. The P/S ratio shows a significant disconnect with revenue growth but the P/E ratio shows fairer valuation, leading me to believe that MCD is moderately overvalued currently.

Many people analyze a company's prospects in isolation. However, it's useful to compare stocks in the same sector to see which provides a better investment opportunity.

McDonald's (MCD -0.84%) and its golden arches are known the world over. There are nuances to the menu, depending on the country in which you find a McDonald's restaurant, but broadly speaking, every location is pretty much the same.