I've been looking into McDonald's after its recent decline and wanted to get opinions from people who follow the company more closely.
From what I can tell:
It's down roughly 25% from its recent highs.
P/E is around 21, which seems more reasonable than before.
Dividend yield is close to 3%.
What I'm trying to understand is why the market has become so bearish still after it dropped 25%
main issue is its current menu prices are too high for people's expectations....then just bring the price down! they make huge margins at MCD anyways. why not bring it down? then people will come
MCD is cheap per calorie with access to wifi, washroom, parking, which is all important in a recession. people would rather eat junk food than starve. poor people don't have money/time for healthy food
average young person is too broke for healthy food as the middle class is shrinking. average young person does not care as much about their health because they are pessimistic of owning properties and retirement and focus more on investing in experiences such as travelling or giving up on the system laying flat living at their parents
meanwhile Starbucks trades at 80PE