- The restaurant industry is one of the worst performing groups over the past year, hit by continued inflationary pressures, a tight labor market and now a shrinking discretionary budget.
- However, McDonald's has performed exceptionally well among the carnage, down less than 15% from its all-time highs and massively outperforming its fast-food, pizza, and casual dining peers.
- This significant outperformance can be attributed to its best-in-class business model and recession-resistant status, with McDonald's being a beneficiary of trading down.
- Given that McDonald's is one of the best positioned brands due to its value proposition and strong operating margins, I would view any pullbacks below $218.50 as low-risk buying opportunities.
For further details see:
McDonald's: A Solid Buy-The-Dip Candidate