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McDonald's remains a buy despite recent declines and margin pressures, with strong growth and store expansion ahead.

Analyst Insights
15 May 2026
Seeking Alpha
View Source
Bullish
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McDonald's stock has dropped about 11% over the past year amid margin pressures from consumer affordability issues and tariffs. However, the company remains a buy as it trades below its five-year average valuation at around 20 times earnings. Recent earnings beat expectations with global sales up 6% and EPS of $2.83, supported by initiatives focused on affordability. McDonald's plans to accelerate growth by opening 50,000 stores by next year, backed by strong free cash flow and liquidity, though macroeconomic and geopolitical risks may cause near-term volatility.

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