MCD is not a buy yet: its low growth and a P/E still over 20% above the industry average, with no great growth versus cheaper stocks, keep it unattractive, even after about a 30% fall from its peak; its Next plan, franchise cash flow and >3% dividend yield are strengths.

It is, of course, McDonald's, its stock ticker symbol MCD, in which Trump acquired shares worth up to $5 million in his latest buying deal. Of all the stocks he bought, this one might be the least surprising; Because, as almost everyone knows, Trump has a long-standing, perhaps even " love affair" with McDonald's food.

We saw him serving towering piles of Big Macs and Quarter Pounders at the White House, ordering bags of burgers for his private plane during his election campaign, and even wearing an apron to work in a fryer at a McDonald's branch in Pennsylvania.

In fact, he has often joked that one of the reasons he eats burgers is because he feels it's a clean and reliable way to know exactly what he's going to get on his plate or, I think, his bag in this case.

Well, it seems he is no longer just interested in eating burgers, but wants to be a partner in ownership through investment.

Looking at the stock chart , the timing of this recent surge seems logical. McDonald's has had a very difficult time this year, even falling by about 30% from its peak, which is worrying for a stock that has typically performed strongly for decades.

So why did Wall Street abandon him? Well, it's all about the pressures faced by the average consumer. With persistent inflation and rising interest rates weighing on household budgets, low-income earners have reduced their restaurant visits, while fiercely resisting fast food prices, especially the rising prices.

In fact, we can see this slowdown even in their latest earnings, where sales of comparable global stores barely rose by 1.3%, while sales of US stores barely rose by less than 1%.

Moreover, input costs were exorbitant, with CEO Chris Kimczynski noting that wholesale beef prices had literally doubled in their main markets over the past five years, which is unreasonable.

So, when you combine rising food costs with consumers struggling financially in a very difficult macroeconomy , Wall Street is concerned that McDonald's will fall into a profit margin trap, where it has to choose between two things: either raising prices and risking losing customers, or offering big discounts to attract them, but at the cost of eroding a large part of its profits.

To me, it seems like a lose-lose situation either way , and that's one of the reasons I haven't bought it, at least not yet . However, I would say that if there is one company that should not be ruled out because of a cyclical economic downturn, it is definitely McDonald's.

In fact , historically, I recall two times when the company's stock fell by more than 30% from its peak, once during the 2003 recession and again in 2015. But both times, critics claimed that fast food was finished.

However, both times McDonald's completely reinvented its operations, and its stock price more than doubled in the following two years.

Now, the company is applying the same strategy through an $8.5 billion modernization plan called "Next".

First, the company is changing the customer experience by using new technologies. It is launching an AI-based operating platform called "Arch IQ" to improve kitchen staff management .

It is also testing an automated drive-through ordering tool called "Archie". They are even adding in-store receiving lockers to help delivery drivers work faster and more efficiently.

Secondly, they are experimenting with new high-margin advertising on digital car order boards. They may witness a huge turnout. They already have more than 29,000 car service branches worldwide, and serve more than 70 million customers daily.

Therefore, management estimates that this new car advertising network alone could generate up to $1 billion in high-margin sales. Third, they strongly defend their core menu through their "Best Burger" initiative, as they call it.

This initiative aims to improve the quality of bread and cooking processes. They are also launching the new "Big Arch" burger for those with a big appetite, and expanding their hand-breaded chicken selection for those who prefer it.

They even offer protein-rich products to meet the needs of consumers taking GLP-1 medications, which is a bit strange . As we know, many people are taking GLP-1 these days, and that number is likely to continue to rise, especially with products offered by companies like Eli Lilly and others, which show amazing results.

The important thing is that people who take GLP-1 tend to lose muscle mass. One way to help prevent this is to eat more protein. Of course, you should exercise and lift weights, but another way is to try to eat more protein.

So, there are already many companies targeting this market due to its rapid growth. Many people frequent it. Therefore, many companies are trying to target it by offering more protein-rich products. Of course, McDonald's is no exception.

In addition, the enormous size of McDonald's business in the real estate sector cannot be overlooked, as approximately 95% of its 45,000 restaurants worldwide operate under a franchise system.

This means that McDonald's owns or leases the prime land on which its restaurants are located, and then receives fixed rents and revenues with high profit margins directly linked to total sales.

It is a more profitable structure that allows it to achieve high operating margins exceeding 45%, with annual free cash flow ranging between $7 billion and $8 billion. This strong cash flow is the main reason behind their historic achievement last month, when they announced a 50th consecutive annual dividend increase, officially crowning McDonald's as the queen of dividends.

In addition, due to the significant price decrease, the dividend yield now exceeds 3%, which is a very attractive rate for a leading company in this field.

The only reason that prevents me from buying the stock yet is simply the low growth rate and relatively high price even after the decline. Now, the price-to-earnings ratio is at least 23% lower than its average over the past five years.

Therefore, I understand why investors are looking at this decline and considering buying shares to ensure they receive dividends at these levels.

However, the price-to-earnings ratio is still more than 20% higher than the industry average. And what was, in my opinion, always a rather distinctive stock, I don't see in it great future growth potential compared to other stocks that are cheaper and have larger discounts, in my opinion.

Therefore, I think I would put it in fourth place, right after Netflix, while I would lower Comcast one place to match .