McDonald's: Consistency Deserves A Better Multiple (Rating Upgrade)

McDonald's (MCD) has underperformed the market, declining 10% versus a 14% benchmark rally since the last coverage. Recent catalysts and compressed earnings multiples now make MCD attractive, prompting a rating upgrade from Hold to Buy. Top- and bottom-line growth has accelerated, with recent quarters suggesting a potential turnaround in business performance. Consistency in growth supports the case for multiple expansion, and the outlook for MCD is seen as improved.