McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates under various structures comprising conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.

McDonald’s looks like a high-quality but not cheap defensive business: operating margin and profit margin remain very high, while revenue, EBITDA, and net income are holding at a stable level. At the same time, P/E, P/S, and P/FCF are noticeably above the industry median, which limits re-rating potential and makes the current valuation sensitive to any slowdown in growth. The company’s strength is its stable profit generation: ROA, ROI, and profit margin are significantly above industry benchmarks, and the year-to-year trend is generally steady, with no signs of deterioration in business quality. An additional positive is moderate liquidity: the quick ratio is above the median, although the current ratio remains only around one and does not provide much of a cushion. The weak point is the capital structure: long-term debt is very large, and shareholders’ equity is negative, reflecting an aggressive financial structure and increasing sensitivity to interest rates and refinancing. Against this backdrop, debt_equity_ratio, ROE, and return_on_tangible_equity look largely uninformative or distorted due to negative equity, so they should be interpreted with caution. The dividend yield in the presented data does not appear to be a strong supporting factor, and its trend does not show convincing improvement. There is growth in revenue and earnings, but it does not appear strong enough to justify a noticeably higher multiple without the risk of valuation compression. Overall, the fundamentals support a premium to weaker companies in the sector, but do not provide grounds for an aggressive increase in the target price. For an investor, this is a story of stable cash flow and a high-quality operating model, but with limited upside due to an expensive valuation and a heavy debt burden. Therefore, the forecast adjustment should be moderately negative, reflecting the balance between strong operating efficiency and elevated multiples.

McDonald's Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Рынок не поддерживает быков.

Weak index, significantly down. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Strong margins and profitability support McDonald’s, but its expensive valuation and high debt limit upside and warrant a moderately cautious outlook.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Value ETF (Symbol: IWX) where we have detected an approximate $384.1 million dollar outflow -- that's a 10.2% decrease week over week (from 33,300,000 to 29,900,000). Among the largest underlying components of IWX, in trading today Walt Disney Co. (Symbol: DIS) is up about 0.9%, Verizon Communications Inc (Symbol: VZ) is up about 0.9%, and McDonald's Corp (Symbol: MCD) is higher by about 0.3%. For a complete list of holdings, visit the IWX Holdings page » The chart below shows the one year price performance of IWX, versus its 200 day moving average:
Looking at the chart above, IWX's low point in its 52 week range is $87.26 per share, with $113.95 as the 52 week high point — that compares with a last trade of $113.51. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IWX Research:

IWX, DIS, VZ, MCD: ETF Outflow Alert

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Meta Platforms Inc (Symbol: META), where a total volume of 217,575 contracts has been traded thus far today, a contract volume which is representative of approximately 21.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 98.1% of META's average daily trading volume over the past month, of 22.2 million shares. Particularly high volume was seen for the $740 strike call option expiring October 09, 2026, with 14,044 contracts trading so far today, representing approximately 1.4 million underlying shares of META. Below is a chart showing META's trailing twelve month trading history, with the $740 strike highlighted in orange:
Microsoft Corporation (Symbol: MSFT) saw options trading volume of 202,045 contracts, representing approximately 20.2 million underlying shares or approximately 91.9% of MSFT's average daily trading volume over the past month, of 22.0 million shares. Particularly high volume was seen for the $535 strike call option expiring October 09, 2026, with 18,446 contracts trading so far today, representing approximately 1.8 million underlying shares of MSFT. Below is a chart showing MSFT's trailing twelve month trading history, with the $535 strike highlighted in orange:
And McDonald's Corp (Symbol: MCD) saw options trading volume of 42,936 contracts, representing approximately 4.3 million underlying shares or approximately 68.5% of MCD's average daily trading volume over the past month, of 6.3 million shares. Especially high volume was seen for the $242.50 strike call option expiring October 09, 2026, with 10,833 contracts trading so far today, representing approximately 1.1 million underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $242.50 strike highlighted in orange:
For the various different available expirations for META options, MSFT options, or MCD options, visit StockOptionsChannel.com.

Noteworthy Thursday Option Activity: META, MSFT, MCD

Key Points
McDonald's stock has fallen more than 30% from its peak twice before, in 2003 and 2015, and both times it more than doubled within a couple of years of committing to a real turnaround.
This time, management is framing high costs and soft traffic as the new normal rather than a temporary dip, which makes the setup different from past recoveries.
McDonald's new $8.5 billion modernization plan gives history's pattern a real shot at repeating, but investors should expect a multi-year turnaround, not a quick bounce.
McDonald's (NYSE: MCD) shares are down roughly 32% from the $341.75 all-time high they hit in February, recently trading near $232, close to a four-year low. That's a steep drop for a company this size, but it isn't the first time McDonald's stock has fallen this hard. It's happened twice before, and both times, the stock eventually came back stronger than it went in.
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The 2003 crisis: McDonald's fell 70% before its biggest turnaround
In early 2003, McDonald's posted its first quarterly loss since going public in 1965, and the stock had fallen 70% from its 1999 peak, hitting an all-time low near $12, according to NPR. The cause was years of overexpansion and inconsistent restaurant quality -- growth for growth's sake rather than a focus on the customer experience.
The company's response -- a plan called "Plan to Win" -- shifted the focus to existing restaurants instead of opening new ones, cut capital spending, and introduced the "I'm lovin' it" brand campaign. It worked. Between March 2003 and October 2004, McDonald's stock rose 105%, more than triple the S&P 500's 35% gain over that same stretch.
The 2015 slump: a stale menu and a modern fix
A decade later, McDonald's hit trouble again. U.S. market share slipped from 17.4% in 2012 to 15.4% by 2016, and the company reported its first negative global same-store sales in more than a decade, according to Entrepreneur. The menu had grown cluttered, and the brand felt dated.
Then-CEO Steve Easterbrook repositioned McDonald's as a "modern, progressive burger company," moved toward a nearly fully franchised model, and launched all-day breakfast in October 2015 after years of customer requests. The stock nearly doubled over the following two years.
This time looks different in one important way
McDonald's current slump shares real similarities with those earlier ones: There is declining traffic, a menu and value perception that's lost its edge, and new competition. But there is a big new investment plan coming as the fix.
In September, the company unveiled an $8.5 billion restaurant modernization plan running through 2036, including an AI-powered ordering system, hand-breaded chicken, protein-forward menu items aimed partly at GLP-1 drug users, and efficiency upgrades the company says could add roughly $100,000 in annual cash flow per average U.S. restaurant, according to ABC.
But there's a key difference. In 2003 and 2015, McDonald's framed its problems as things it had broken and could fix. This time, CEO Chris Kempczinski has described persistently high food costs, with beef prices nearly doubling over five years, and softer traffic as simply "the environment" going forward, not a temporary rough patch to wait out, according to comments spoken to CNBC. McDonald's is also testing third-party ads on its drive-thru digital order boards, which could eventually bring in about $1 billion in additional revenue.
That's a more honest and creative read of the macro backdrop we are seeing these days. Still, it also means this turnaround has to win customers back in a tougher economic climate than the ones that powered the 2004 and 2016 recoveries.
Is it a buy now?
History leans in McDonald's favor here: The company has twice turned a steep, double-digit drawdown into a multi-year stock that more than doubled by actually reinvesting in the core restaurant experience rather than cutting its way to profitability. Add to this the fact that McDonald's has increased its dividend every year since 1976 and just became a Dividend King in 2026 after reaching 50 consecutive years of dividend growth.
I'd treat this less like a quick trade and more like a multi-year bet that McDonald's $8.5 billion plan and AI-driven efficiency push can win back customers, even if the broader economic backdrop doesn't improve.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

McDonald's Has Fallen More Than 30% From Its Peak Before. Here's What History Says Happens Next.

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Dell Technologies Inc (Symbol: DELL) has taken over the #69 spot from McDonald's Corp (Symbol: MCD), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Dell Technologies Inc (Symbol: DELL), the market cap is now $169.69 billion, versus McDonald's Corp (Symbol: MCD) at $164.08 billion.
Below is a chart of Dell Technologies Inc versus McDonald's Corp plotting their respective size rank within the S&P 500 over time (DELL plotted in blue; MCD plotted in green):
Below is a three month price history chart comparing the stock performance of DELL vs. MCD:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full DELL market cap history vs. the full MCD market cap history.
At the closing bell, DELL is up about 0.7%, while MCD is up about 0.3% on the day Thursday.
Further DELL Research:

Dell Technologies Moves Up In Market Cap Rank, Passing McDonald's

McDonald’s Corporation MCD is looking beyond its traditional burger-and-fries business to beverages as a potentially meaningful source of incremental growth. The company’s new beverage platform, launched in May 2026, has generated encouraging early results across the United States, Canada and Germany, with Australia joining the rollout in mid-July. Management said performance has generally met or exceeded initial expectations across these markets.
The opportunity is particularly compelling because beverages can create incremental visits during underutilized dayparts. More than half of traffic associated with the new platform is occurring after lunch, when McDonald’s restaurants typically have lower volumes and greater capacity. Moreover, strong food attachment has lifted average checks, which management said are roughly 50% above the company’s full-day average for these beverage transactions.
Germany offers an early indication of the broader opportunity. The market introduced the full lineup of cold coffee, crafted sodas, refreshers and energy beverages, generating meaningful incremental contributions to comparable guest counts, sales and restaurant-level cash flow.
The platform also fits squarely within the McDonald’s > NEXT strategy. Management said U.S. beverage sales are ahead of plan, while higher guest checks, new daypart occasions and strong food attachment are reinforcing momentum. More importantly, McDonald’s views beverages as a baseline growth platform capable of delivering multiple years of opportunity and plans to extend it into additional markets.
With more than 45,000 restaurants across over 100 countries, McDonald’s has the scale to broaden successful beverage concepts rapidly. If early traffic, check and cash-flow gains persist as the rollout expands, beverages could become a meaningful new global growth wave for the company.
How Rivals SBUX and CMG Are Expanding Beverage Opportunities
McDonald’s is not alone in targeting beverages as a way to create new occasions and drive incremental traffic. Starbucks Corporation SBUX and Chipotle Mexican Grill, Inc. CMG are also leaning on beverage innovation to support growth.
Starbucks is expanding its Refreshers platform, which delivered double-digit U.S. revenue growth in the third quarter of fiscal 2026. Customizable energy offerings, new flavors and planned sparkling beverages are helping the company target both morning and afternoon occasions, with management viewing Refreshers as an important tool for expanding the afternoon daypart.
Chipotle is accelerating menu innovation across proteins, sides, desserts and beverages, with management identifying beverages as an area with significant untapped potential. The company is developing new beverage concepts as it looks to broaden customer occasions and give guests more reasons to visit. Management expects some of its broader menu innovations to reach restaurants in the second half of 2026 and into 2027.
MCD’s Price Performance, Valuation & Estimates
McDonald’s shares have lost 13.1% in the past three months, outperforming the Zacks Retail - Restaurants industry, but underperforming the broader Retail and Wholesale sector and the S&P 500 index.
MCD Three-Month Price Performance
In terms of its forward 12-month price-to-earnings ratio, MCD is trading at 17.27, down from the industry’s 19.94.
MCD P/E (F12M)
MCD’s earnings estimates for 2026 and 2027 have trended downward in the past seven days. The revised estimates for 2026 and 2027 imply year-over-year growth of 5.3% and 7.2%, respectively.
MCD Estimate Trend
MCD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can McDonald's Beverage Expansion Become Its Next Global Growth Wave?

Key Points
McDonald's stock is down 31% from its recent high as the market has reacted to its weak U.S. comp sales.
U.S. comparable-store sales grew only 0.8% in the second quarter, a result that management blamed on execution missteps.
At the current share price, it offers an attractive dividend yield of 3.2%.
McDonald's (NYSE: MCD) recent sell-off looks more like a buying opportunity than a reason to avoid the stock. As of Sept. 28, shares were at a 52-week low, down about 31% from the high of $341.75 they hit this spring.
The near term could stay bumpy as the business navigates a weak macroeconomic backdrop and searches for ways to reignite sluggish sales growth. But with the stock now trading at a modest price-to-earnings discount and offering a generous dividend yield, investors who buy in today could see solid returns.
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Execution, not the brand, is to blame for slow U.S. comparable sales growth
The stock has been sliding again since the company reported weakening sales growth in its most recent quarter. Global comparable sales grew 1.3% year over year. The U.S. market was the main soft spot, with comparable sales up just 0.8%. This is down from a stronger global comp increase of 3.8% year over year in the first quarter, and a solid U.S. comp increase of 3.9%.
"We simply didn't execute at the level we needed to in the second quarter," CEO Chris Kempczinski said during theearnings callon Aug. 4.
Kempczinski pointed to the withdrawal of several digital offers and the Buy One, Add One program. Those changes hurt traffic and dragged on U.S. comps sales in an already weak consumer spending environment. The tepid results prompted the company to push back its 50,000-restaurant goal to 2028.
All of this has been weighing on the stock, but these look like fixable, near-term issues -- not signs of a broken brand.
McDonald's to invest $5 billion in its ArchIQ AI restaurant system
More than 70 million customers visit McDonald's each day, and nearly 220 million people are signed up for the company's app and loyalty program. That gives it a massive customer base to monetize -- meaning menu and operational improvements can translate quickly into profitable growth at scale.
The company's "NEXT" growth strategy aims to improve food quality and restaurant operations. By the end of 2030, the company plans to invest $5 billion to accelerate deployment for "ArchIQ," its AI-powered restaurant operating system. The goal is to free up crew hours, boost productivity, and help teams spend more time on customer satisfaction and food preparation.
Health trends pose a real risk to the chain's business model, especially the growing use of weight-control treatments like GLP-1s. Management is not running from that headwind, but addressing it head-on. It's an opportunity, as 84% of households that include GLP-1 users visit McDonald's, according to the company's September 2026 Investor Day presentation. So the chain plans to cater to these customers' needs by offering more protein options and portion flexibility.
The stock's decline has brought its price-to-earnings multiple down to 19, well below its 10-year average P/E of around 26. Investors who buy at the current share price are also getting a dividend yield of about 3.2%, supported by earnings and free cash flow.
If management can improve its U.S. traffic trends and execute on its NEXT strategy, which has the potential to fuel higher margins through AI initiatives, today's lower price could look like a strong entry point five years from now.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McDonald's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
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*Stock Advisor returns as of September 30, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

McDonald's Stock Has Pulled Back From Its Highs. Is It a Buying Opportunity?

A business with a moat becomes an increasingly attractive stock when considering investing for the very long term.
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*Stock prices used were the afternoon prices of Sept. 27, 2026. The video was published on Sept. 29, 2026.
Should you buy stock in General Mills right now?
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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Key Points
McDonald's is looking to sell third-party ads on its digital order boards.
It estimates that the opportunity could add $1 billion in additional revenue.
The company has recently announced multiple initiatives, as it looks to improve upon its growth rate.
McDonald's (NYSE:MCD) hasn't been doing too well this year. Its growth rate has been light, the stock has been in a tailspin, and investors aren't loving the stock, even for its high-yielding dividend, which currently pays 3.3%.
The company recently announced a big move, however, and it's one that could provide its financials with a big boost: it's getting into the ad business.
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Image source: Getty Images.
McDonald's to show ads on its drive-thrus
Hundreds of McDonald's locations have recently begun testing out ads on their drive-thru order boards. These are ads that are sold to third parties as a way to generate more revenue for McDonald's. The company estimates that if it goes through with ads on its drive-thru order boards, it could generate $1 billion in revenue. Over the past four quarters, McDonald's has brought in $27.7 billion in sales. The ad business would help diversify its operations and give it a new growth opportunity to pursue, without much additional cost; it would be an easy way to grow both its top and bottom lines.
In addition, the company recently announced plans to invest $8.5 billion over the next decade as it remodels restaurants, updates its menus, and retrains employees to improve the customer experience. McDonald's, despite being a top restaurant chain across the globe, has been struggling of late to grow its business. Its global comparable growth rate for the most recent quarter was just 1.3%.
Is McDonald's stock a good buy right now?
The sell-off in the fast food stock this year has not only sent it to a new 52-week low, but it also hasn't been trading this low since late 2022. In the process, its yield has climbed, enabling investors to collect a higher-than-normal payout from the stock. McDonald's also recently announced a dividend increase, representing the 50th consecutive year that it has done so.
McDonald's has a terrific track record for paying dividends and being a fairly safe and stable long-term investment. While it's been struggling recently, the business isn't broken; inflation may be more to blame for its sluggish growth than anything else these days, as consumers are a bit more cautious in their spending.
At just 19 times its trailing earnings, McDonald's stock has become a fairly cheap buy right now, especially given all the dividend income it can generate for investors. This is a stock that can be an excellent option for any type of investor to consider for the long haul.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McDonald's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
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*Stock Advisor returns as of September 28, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

McDonald's Just Announced a Big Move That Could Unlock a Billion-Dollar Growth Opportunity for Its Business

Key Points
Low comparable sales growth has put pressure on franchisees, to the point where McDonald's will provide $5 billion in support through 2030.
Inflation has been persistent, and McDonald's doesn't have as much pricing power since affordable food is a central part of its identity.
McDonald's comparable growth rates are not keeping up with inflation.
McDonald's (NYSE: MCD) faces an uphill battle as inflation continues to squeeze more people's wallets. Investors are privy to this detail, with the dividend stock down by more than 20% this year.
The situation has pressured McDonald's over the past five years, and it also puts the stock roughly $100 below its 52-week high. Some investors view dips as buying opportunities, but that may not be the case for McDonald's.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
McDonald's doesn't have much pricing power
McDonald's built an iconic fast food restaurant chain by catering to consumers who want cheap food. When that cheap food gets more expensive, it's easier for consumers to consider alternatives, and rising prices have created more tension amid broad inflation.
Low-income consumers have been pulling back on McDonald's purchases. This segment saw a double-digit year-over-year drop in 2025 and also decreased this year.
The glaring red flag is that second-quarter comparable sales only increased by 0.8% year-over-year in the U.S., which is the company's largest market. Meanwhile, the Consumer Price Index increased by 3.4% year-over-year.
McDonald's comparable sales growth is not keeping up with inflation, and with comparable sales from international operated markets up by 1.5% year-over-year, the company has limited options to reignite growth.
Price hikes aren't a good option when McDonald's caters to lower-income consumers and has used low prices as a major selling point for many years. Furthermore, operating income only inched up by 3% year-over-year, showing that the company has limited options for boosting its profit margins.
Franchisees are feeling the pain
McDonald's doesn't just sell fast food. It also buys real estate and leases some of its locations to franchisees. Those franchisees either pay monthly rent or a percentage of sales.
This business model was a key reason McDonald's became the most recognizable fast food restaurant chain. However, those same store owners are facing sharply rising costs amid sluggish growth rates.
McDonald's acknowledged this is an issue upon announcing its NEXT initiative. Part of this strategy includes providing $5 billion to franchisees through 2030, "through a combination of rent relief and capital support."
That's more than half of McDonald's full-year profits, which will be distributed through 2030. It's also part of a larger $8.5 billion commitment through 2036.
A survey from the National Owners Association found that 95% of franchisees reported declining year-over-year profitability in Q1, with nearly universal agreement that McDonald's current plan for increasing cash flow is not working.
Approximately 80% of survey respondents said their cash flow is "not sufficient to support required reinvestment obligations."
It's no wonder McDonald's announced its NEXT initiative, which looks more like a preservation mission than a long-term growth opportunity. If operators continue to feel the pinch and have long-term doubts, they may look for an exit, and the 0.8% boost in U.S. comparable sales may not be enticing enough for aspiring franchisees to do business with McDonald's.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McDonald's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 27, 2026.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Can McDonald's Stock Reclaim Its All-Time High as Rising Prices Weigh on Consumers?

Key Points
McDonald's stock has fallen approximately 22% this year.
McDonald's and Burger King are implementing turnaround strategies as consumers tighten their wallets and demand greater value.
The crown of fast food currently lies with Restaurant Brands International's (NYSE: QSR) Burger King. McDonald's (NYSE: MCD) is trying to avoid becoming the jester. In the second quarter of 2026, Burger King's same-store sales in the U.S. rose 8.5%, soundly defeating its peers as McDonald's grew just 0.8% in the same category.
Burger King, much like McDonald's, is executing a turnaround strategy. From remodeling existing stores to pushing its best-selling sandwich, the Whopper, Burger King's efforts are paying off. Restaurant Brands reported a more than 12% climb in earnings per share in the second quarter of 2026.
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McDonald's, on the other hand, has struggled to execute effectively. Restaurants attributed the poor performance to too many new rollouts, which negatively impacted customer satisfaction and slowed service.
The burger chain is hoping the secret sauce is its McDonald's > NEXT initiative. The four-pillar growth strategy focuses on improving and innovating the menu, deepening customer engagement, increasing productivity at each location, and adopting a new approach to hospitality. Hand-breaded chicken sandwiches and new trendy beverages are part of the company's plan to lure customers back.
McDonald's ambitions are high, and the company has proven time and again that it knows how to remain relevant in this sector, but I'm not sure the NEXT strategy is the right one. Burger King is simplifying operations and letting its core product win the day. McDonald's seems to be adding complexity to its menu and throwing things at the wall to find what finicky customers will like. It feels somewhat short-sighted.
McDonald's still has plenty of advantages over its competitors. Its sheer scale gives it an edge, but I think the iconic Golden Arches could take a lesson or two from Restaurant Brands right now, particularly in emphasizing what is already right with its menu. If I had to choose between the two stocks, I'd go with Burger King's parent company.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McDonald's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 26, 2026.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Indicator	Feb 26	Mar 26	Jun 26	Aug 26	Sep 26	TTM	Median
P/E	—	25.45	—	—	—	25.45	17.39
Price/Sales	9.09	8.05	6.97	6.80	—	6.80	0.66
P/B	0.00	30.65K	26.84K	—	0.00	0.00	1.68
P/FCF	32.68	30.46	24.14	—	20.77	20.77	12.74

Indicator	Feb 26	Mar 26	Jun 26	Aug 26	Sep 26	TTM	Median
ROE	—	0.00	0.00	—	—	0.00	15.36
ROA	—	14.48	—	—	—	14.48	4.97
ROI	—	22.78	22.95	—	—	22.95	8.47
Net Worth	243.59	220.26	192.87	—	—	192.87	0.82
Quick Ratio	—	1.12	1.07	—	—	1.07	0.85
Current Ratio	—	1.14	1.08	—	—	1.08	1.38

Indicator	Feb 26	Mar 26	Jun 26	Aug 26	Sep 26	TTM	Median
Net Profit Margin	—	31.62	31.72	—	—	31.72	5.79
Operating Margin	—	46.26	46.22	—	—	46.22	8.36
Gross Margin	—	57.35	—	—	—	57.35	39.57
Return on tangible equity	—	0.00	0.00	—	—	0.00	22.12

Indicator	Feb 26	Mar 26	Jun 26	Aug 26	Sep 26	TTM	Median
EPS	3.12	—	—	3.38	—	3.38	0.52
EPS Forecast	3.05	—	—	3.32	—	3.32	0.51
Revenue	—	6.52B	7.10B	—	—	7.10B	193.00M
Gross Profit	—	3.64B	4.12B	—	—	4.12B	—
EBITDA	—	3.52B	3.90B	—	—	3.90B	—

McDonald's Corporation

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