McDonald's: Still Not Good Enough

McDonald’s is rated Hold, with current valuation reflecting an optimistic fair value despite persistent near-term macro headwinds and potential margin pressure. Near-term cost inflation and weakening consumer demand threaten margins, though MCD’s scale and value menu initiatives provide relative resilience. Dividend King status is very likely by late 2026, with a combined yield of ~3.58% potentially attracting more investors if the stock declines. DCF-based intrinsic value is estimated at $271.24 per share, nearly identical to current levels, offering insufficient margin of safety for new positions.

The last time I covered McDonald's ( MCD ), I highlighted how the company remained on track to achieve its ~50,000 stores target while the Dividend King status is getting very close, but I also mentioned