u/Pleasant-Deal-2437 ·
Reddit — r/ValueInvesting
· July 22, 2026 at 16:34
· ⬆ 19 pts
· 💬 46 comments
| View on Reddit ↗
AI Summary
Summary
The author argues McDonald’s (MCD) is a buy after a 20–25% decline, citing a P/E of ~22, a ~3% dividend yield, and its resilient franchise model.
Key thesis: MCD remains an essential, low-cost convenience for consumers, and headwinds like Ozempic, CEO controversy, and inflation are overstated.
Quality assessment: Speculation with reasonable reasoning, but lacks deep financial analysis or catalysts; not rigorous DD.
Score19
Comments46
Upvote %86%
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I've been looking into McDonald's after its recent decline and wanted to get opinions from people who follow the company more closely.
From what I can tell:
It's down roughly 20–25% from its recent highs.
P/E is around 22, which seems more reasonable than before.
Dividend yield is close to 3%.
The business still has one of the strongest franchise models in the world.
What I'm trying to understand is why the market has become so bearish still after it dropped 25%
I still think McDonald's is considered an essential convenience purchase for a lot of people. Not everyone has the time or ability to cook lunch, whether they're working on the road, at a job site, or they're simply too lazy or tired to cook.
The increase in single people decreases cooking probability, which will also increase sales in fast food. The sales of Ozempic means you eat less but you can still eat at fast food. Ozempic only reduces food quantity so it's not going to kill the business
McDonald's still has some of the cheapest fast-food items in North America with the App
Everything has gone up, it's not just MCD menu
the CEO bite meme is old news.
Poor people will continue to eat at MCD
MCD is down 20-25% from highs, P/E ~22, dividend yield ~3%, with a dominant franchise model. The market has overreacted to temporary concerns (Ozempic, CEO drama, inflation) while MCD’s core business (affordable convenience for lower-income/repeat customers) remains intact. The pullback offers a value entry into a high-quality compounder with a wide moat and predictable cash flows. Continued consumer spending slowdown, further margin compression from wage/food inflation, or a more severe impact from GLP-1 drugs on frequency.
This Reddit post, published July 22, 2026,
features u/Pleasant-Deal-2437
discussing MCD.
1 trade idea extracted by AI with direction and confidence scoring.