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Feb 12, 2026
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LONG
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"Is McDonald's been successful in actually providing that value to U.S. consumers in the most recent quarter? It does appear to be that way... really solid results." The consumer is "feeling stretched," and McDonald's pivot to a $5 value menu is capturing this demand effectively. Unlike a pure race to the bottom, they are layering on high-margin marketing "hype" (Grinch meal) to maintain brand excitement. The ability to share costs 50/50 with franchisees demonstrates balance sheet strength that smaller competitors lack. The value strategy is working, international growth is robust ($12.5B revenue target), and the stock is responding (+6% YTD 2026). Continued inflation in beef and labor prices; potential for traffic to decelerate if the consumer weakens to the point of cutting out fast food entirely. |
Bloomberg Markets
McDonald’s serves up $5 value meals, and the ...
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