MCD is a buy; fair value $283 vs price $232 supported by tech-driven cost reductions (robot delivery/AI) outweighing health-trend risks.
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These are Amazon, Netflix, Uber, Nvidia, Pinterest, Meta, Visa, Adobe , and McDonald's. Let me explain why I believe these stocks represent excellent value at the moment.
Last but not least, McDonald's, which I calculated to have a fair value of $283 compared to the market price of $232. One of the biggest risks for McDonald's is consumers' shift towards healthier options.
This presents a challenge for McDonald's because they do not have a very healthy product range. They could now offer healthier options as consumers shift towards this category, but this is not within McDonald's areas of expertise.
However, one of the most optimistic factors and one of the reasons that makes me excited about McDonald's is innovation. Self-driving car technology or robot delivery technology could expand the reach of each McDonald's branch and further reduce customer service costs.
In addition, the company can leverage artificial intelligence in drive-thru windows and in-store locations where they now use order kiosks, reducing the need for staff and labor at each McDonald's branch, which is one of the most challenging parts of managing a McDonald's franchise.
I think all of this makes McDonald's stock a buying opportunity. It is the only stock on this list that I do not currently own in my portfolio, but I am interested in adding McDonald's stock to it.
What this channel has said about $MCD
Parkev Tatevosian, CFA has 5 calls on this stock; only the adjacent ones are shown.