Summary
- On one hand, the high-quality business model, the superb brand recognition, and customer loyalty enable MCD to perform well in various economic environments, in different stages of the business cycle.
- On the other hand, the firm appears to be trading at a premium, based on both a set of traditional price multiples and the Gordon Growth Model.
- Before we would consider upgrading our rating from "hold" to "buy" based on valuation, we would like to see the stock price come down substantially.
For further details see:
Is McDonald's Fairly Valued In The Current Environment?