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MCD · NYSE · STOCK

McDonald's (MCD) Stock Analysis

Consumer Cyclical Updated August 23, 2026
$271.07
52W $260.96 – $341.75
54/100
$192.51B
22.0
0.42
AI Committee Verdict
Watch
54/100
Conviction: Contested · 50% agreement · 6 analysts
+6.7%
-3.7%
1.78:1
Contested

Is MCD Bullish or Bearish?

Mixed. Innellis AI committee rates McDonald's Corporation (MCD) Watch with a composite score of 54/100 , based on 6 analysts with 50% agreement. Last updated August 23, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +5.54 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -14.46 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Growth Analyst sees a compelling case — 3 consecutive earnings beats -- consistent execution. Technical Analyst remains cautious — price structure making lower highs and lower lows. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • ROE of 95.1% shows genuine earnings power backing the valuation — Value
  • 3 consecutive earnings beats -- consistent execution — Growth
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
Bear Case
  • Price-to-book of 15.3x prices in significant intangible value — Value
  • Debt-to-equity of 3.40 adds balance-sheet risk to the value case — Value
  • Price structure making lower highs and lower lows — Technical
  • MACD histogram negative -- bearish momentum — Technical
  • Trend and market structure agree -- coherent bearish picture — Technical
  • Daily trend (downtrend) conflicts with the weekly trend (uptrend) -- fighting the larger trend — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 23, 2026
Overall Committee Score
54/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 60%
of 178 Consumer Cyclical peers
Value Analyst neutral
50 / 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 95.1% shows genuine earnings power backing the valuation
− Price-to-book of 15.3x prices in significant intangible value
Growth Analyst bullish
68 / 100 · High confidence
Strong, accelerating growth with consistent execution
+ 3 consecutive earnings beats -- consistent execution
Technical Analyst bearish
39 / 100 · High confidence
Price action is deteriorating -- trend and/or momentum are working against this name
− Price structure making lower highs and lower lows
Risk Analyst neutral
45 / 100 · Moderate confidence
Moderate risk -- no single red flag, but nothing that clearly de-risks the position either
− High leverage (debt-to-equity 3.40) amplifies downside in a stress scenario
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst neutral
60 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3069.37)
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Investment Thesis Evolution

Committee score moved marginally from 54.5 to 54.5.

Comparing 2026-08-22 to 2026-08-23 (1 day apart).

Technical Analysis

RSI (14)
52.5
Neutral
MACD Histogram
-0.134
Bearish Momentum
Trend Direction
Downtrend
Weekly: Uptrend
Market Structure
Lh Ll
Support
$260.96
Resistance
$289.11
Bollinger %B
0.50
Inside Bands
Price vs Moving Averages
EMA 9
$270.04 Above
EMA 21
$270.64 Above
EMA 50
$273.62 Below
EMA 200
$290.22 Below

Fundamental Analysis

Valuation
57
Growth
77
Profitability
73
Financial Health
62
Cash Flow
70
Valuation
P/E Ratio 22.0×
P/B Ratio
PEG Ratio 4.22
Dividend Yield 2.71%
52W High $341.75
52W Low $260.96
Quality & Growth
ROE -47811.3%
ROA 1438.8%
Gross Margin 5738.7%
Operating Margin 4597.0%
Revenue Growth YoY
Debt / Equity
AI Fundamental Assessment
P/E ratio of 22.0 (inexpensive relative to a 15-40x range); Price-to-book of -188.2x; PEG ratio of 4.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -478.1%; Return on assets of 14.4%; Net margin of 31.7%; Gross margin of 57.4%; Current ratio of 1.08 (tight short-term liquidity); Debt-to-equity of -53.36; Free cash flow per share is positive (10.92); Most recent quarter beat estimates by 0.9%; 3 consecutive earnings beats; EPS growth accelerating (-9.3% -> +19.4% QoQ); Average YoY EPS growth of 6.0%; Analyst estimates rising over recent quarters
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