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MCD · NYSE · STOCK

McDonald's (MCD) Stock Analysis

Consumer Cyclical Updated August 17, 2026
$265.54
52W $260.96 – $341.75
58/100
$193.85B
22.1
0.42
AI Committee Verdict
Buy
58/100
Conviction: Contested · 50% agreement · 6 analysts
+6.0%
Contested

Is MCD Bullish or Bearish?

Bullish. Innellis AI committee rates McDonald's Corporation (MCD) Buy with a composite score of 58/100 , based on 6 analysts with 50% agreement. Last updated August 17, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +16.50 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -3.50 from today. The band boundary is 60.0, 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. Macro Analyst sees a compelling case — vix regime is low -- calm backdrop supports risk-taking. Risk Analyst remains cautious — high leverage (debt-to-equity 3.40) amplifies downside in a stress scenario. 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
  • Dividend yield of 2.7% pays you to wait — Value
  • 3 consecutive earnings beats -- consistent execution — Growth
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • MACD histogram positive -- bullish momentum — Technical
  • VIX regime is low -- calm backdrop supports risk-taking — Macro
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
  • High leverage (debt-to-equity 3.40) amplifies downside in a stress scenario — Risk
  • Current ratio of 0.95 is tight -- limited short-term liquidity cushion — Risk
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 17, 2026
Overall Committee Score
58/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 45%
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 neutral
58 / 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
Risk Analyst bearish
32 / 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 3.40) amplifies downside in a stress scenario
Macro Analyst bullish
80 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ VIX regime is low -- calm backdrop supports risk-taking
News Analyst bullish
62 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
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 2963.04)
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Investment Thesis Evolution

Committee score moved marginally from 59.2 to 58.5.

Analyst-level changes:
  • News Analyst: score 66->62 (-4).
  • Portfolio Manager: +1 bearish signal(s).

Comparing 2026-08-16 to 2026-08-17 (1 day apart).

Technical Analysis

RSI (14)
51.6
Neutral
MACD Histogram
0.662
Bullish Momentum
Trend Direction
Sideways
Weekly: Uptrend
Market Structure
Lh Ll
Bollinger %B
0.65
Inside Bands
Price vs Moving Averages
EMA 9
$272.92 Below
EMA 21
$272.08 Below
EMA 50
$274.84 Below
EMA 200
$291.36 Below

Fundamental Analysis

Valuation
57
Growth
77
Profitability
73
Financial Health
62
Cash Flow
70
Valuation
P/E Ratio 22.1×
P/B Ratio
PEG Ratio 4.25
Dividend Yield 2.69%
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 22.1 (inexpensive relative to a 15-40x range); Price-to-book of -189.5x; PEG ratio of 4.3 (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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Explore MCD Further

📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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