Buy McDonald's Based on Undervaluation for 2026
"But when I calculated the value of the business using my proprietary discounted cash flow model, I came to a conclusion that the business should be worth $417 per share and at $311 per share, the stock looks undervalued. So to answer the question I posed in the headline, do I think McDonald's stock is a buying opportunity for dividend stock investors? I say yes."
The speaker recommends buying McDonald's for dividend investors, highlighting a DCF-derived target of $417 per share compared to a current price of $311. He emphasizes the role of technology in boosting operational efficiency and reducing costs, which supports the stock's undervaluation and favorable long-term potential for 2026.
Long-term buying opportunity on Na'vi
"A lot of people want to talk about Na'vi. This is a buying opportunity on Na'vi. It's below my ADP. The stock is going to be sitting right between $850 and $10, which is exactly where it is. Anywhere between this red box is an extreme buying opportunity longterm. This is a long-term stock. I told you my most recent videos. This stock was very likely to pull back to the $10 range, and if it did, that's where I'd want to buy, and that's where I would buy it. Don't let all of the news fool you."
The speaker presents Na'vi as an extreme long-term buying opportunity, advising investors to accumulate shares if it pulls back to the $10 range. The commentary stresses that, despite negative news, the current price zone represents an attractive entry for long-term investors.
McDonald's Benefits from Consumer Trade-Down
"Let's look at shares of McDonald's. This is ticker MCD. We're seeing shares up about 2.6% right now. And this is after they actually saw some customers really feeling enticed by their discounts. I mean, the McDonald's has really been throwing a lot of discounts out there trying to make it easier for a lot of these consumers to grapple with the higher tariff environment. And that seems to apparently be paying off here as we really are seeing consumers doing, you know, a lot of these fast food restaurants doing okay with consumers still willing to go there."
The commentary highlights how McDonald's (MCD) is benefiting from consumers trading down amid a higher tariff environment by leveraging aggressive discounting. The observation indicates that even budget-friendly restaurants must adjust pricing to attract cost-sensitive customers.
McDonald's Strong U.S. Sales Drive Turnaround Amid Competitive Fast Food Landscape
"But if I were to go to McDonald's, I'd get what I got since I'm like 14 and number two with a Coke. Okay. See and cheese and just and it's awesome. Every single time you're everywhere in the world you go and it's starting to get a little bit more affordable because before that would cost a pretty penny, you know, for that big proposal to on the cost of beef has gone crazy. Yes. So that's a real thing."
The speaker discusses McDonald's performance with a focus on its US comparable sales growth and promotional tactics that are drawing customers back. The commentary suggests a positive turnaround and robust performance in a competitive fast food market.
McDonald's Sales Growth Boosts Confidence Despite Modest Share Gain
"but people are going to McDonald's. How's that for a segway news? Yeah, it's a turnaround because they were waiting for this, right? Ticker MCD, their shares have been up about 1%. Uh, but they did have the faster than expected sales growth in the US in the last quarter. They had comparable sales. US store sales increased 2.4% in the third quarter. The thing that really helped them out were these new deals and promotions. They were trying to get people back to this affordable option for meals, cutting prices on combo meals and offering buy one get one for a dollar items."
The commentary on McDonald's (MCD) is upbeat, noting modest share gains near 1% coupled with faster than anticipated U.S. sales growth, supported by aggressive promotions and deals. This turnaround narrative contrasts with challenges in fast casual peers and projects a positive near-term outlook.
McDonald's Undervalued with Strong Unit Economics
"And last but not least, McDonald's. So you have one company in financial services, you have one company in technology, and you have one company in restaurants or food delivery. McDonald's has demonstrated a capability to deliver food or provide people with food at a very low price in a very consistent way. What's also impressive about McDonald's, and I think many of you might be underestimating, is the company's use of technology to incorporate and adapt to the times and serve customers more effectively. The fair value I calculated for McDonald's is $429. Current market price is $311. So, McDonald's stock looks undervalued at these prices as well. And again, one of the things underestimated, don't underestimate McDonald's on technology, the food delivery and robotics, right?"
The speaker highlights McDonald's as an undervalued long-term investment with a fair value of $429 versus a current price of $311. Besides its competitive pricing and consistent service, the company is innovating in technology and robotics to improve service efficiency.