McDonald’s: Betting on a major recovery after a 30% price drop!

The expected P/E ratio of McDonald’s stock is a low 18, the most affordable it has been in a long time.
The stock faces competition as a reliable compounder due to high bond yields
Simon Betschinger
S. Betschinger
Reading Time: 2 minutes

Dear investors, a look at the chart of McDonald’s stock looks dramatic. The stock has plunged a whole 32% since the beginning of the year. One might think that the business of fries and burgers has no future. That is not the case: In the last quarter, revenues increased by 5%. The restaurant chain is suffering because consumers are not as free with their money anymore. However, in my opinion, the main reason for the crash is different: bonds have once again become an alternative for investors compared to stocks. The McDonald’s stock has always...

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