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McDonald's shares drop 20% amid weak U.S. sales, trading at high free cash flow yield.

Market News
12 Aug 2026
Seeking Alpha
View Source
Neutral
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McDonald's shares have fallen about 20% from their peak due to weak comparable sales growth in the U.S. market. The company owns a significant portion of its real estate, with 56% of land and 80% of its nearly 50,000 buildings directly owned. Despite the share decline, McDonald's trades at a free cash flow yield of around 4%, one of the highest levels since the early 2000s. The company's Q2 restaurant margin was $4.1 billion, with 90% coming from franchised locations, highlighting its strong cash flow generation amid market challenges.

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