McDonald's upgraded to Buy as valuation offers safety amid tough consumer conditions

McDonald's has been upgraded to a Buy rating due to its attractive valuation that provides a margin of safety despite challenging consumer conditions. The company showed modest sales growth in Q2, strong customer loyalty, and a solid capital return yield of 4.3%. Its '> NEXT' strategic plan and product innovation are expected to drive a turnaround, even with macroeconomic headwinds and execution risks. The intrinsic value estimate exceeds current stock levels, supporting the positive outlook after recent declines.