3D·

As always, we'd love to hear your thoughts!

My second dividend payment from $MCD (-0,07%) It hasn’t been in my portfolio long, but I’m very satisfied. It actually feels pretty good and positive— to hold “so much” in McDonald’s. 👍🏽

For me, definitely a core holding.

What do you think of McDonald’s stock,

if you set aside the health concerns?

Would McDonald’s be a core holding for you, or more of a smaller investment? And why?

I personally lead a healthy lifestyle and work out almost every day, but that’s no reason no reason
$MCD (-0,07%) to demonize.

They rent out their business model; people get a job, the company pays taxes and gets a lot of people out and about. And, and, and …

But just as there are positive aspects , there are also negativeones, of course.

What in this world is ever just positive?

16.09

McDonald's

Recebido x40 Dividendos em US$ 1,86

US$ 74,40

52 Comentários

Musikerie@Musikerie

I'm having a few problems. These fast-food places used to be where poor people ate. But prices have risen far above inflation in recent years. The business model from back then—99-cent burgers and $1.99 meals—is gone. You can't just walk in and get something quickly anymore...

As far as I can tell, McDonald’s itself has also raised its licensing fees for the restaurants… I’m not directly worried about McDonald’s just yet, but the core business in the restaurants—the whole shift to AI and ordering kiosks—hasn’t really paid off…

McDonald’s shareholders have always relied on the fact that poor Americans can at least afford McDonald’s… that model no longer exists… and that makes me cautious.

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KryX_DE@KryX_DE

@Musikerie McDonald's has never been "food for poor people." That description is completely misleading. It was and is food for the general public. McDonald's makes a lot more money today than it used to.

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Poor Dad@PoorDad

@Musikerie I have to agree with @KryX_DE. McDonald’s used to be known more for being fast. Drive there really fast, wait a little while for a few burgers, then get back to whatever you were doing… lunch break, road trip, etc… At McDonald’s, it’s all about maximum speed and convenience at every turn for everyone… and to this day, no one else comes close. That’s quite a huge moat, isn’t it?

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Musikerie@Musikerie

@KryX_DE ... But it was definitely poor people who were eating that way. Americans got so fat because fast food is cheaper than grocery store food—you're misinformed on that point. In Europe, it’s never been that extreme, but in America it certainly is... Here in Germany, there’s the added factor that food at the supermarket is almost nowhere as cheap as it is here, so maybe that’s why you don’t see it that way in Germany. At the very least, when you go to a McDonald’s, you’ll see that the middle class is actually in the minority there… it’s mostly working-class food here, too, even though you’re sure to encounter people from all social classes there. It’s not just about income, but also about education.

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Musikerie@Musikerie

@PoorDad McDonald's has been losing its edge for a while now... Back in the day, the cheeseburgers were always stocked and ready to go... These days, you have to go through the drive-thru if you want to get out of there reasonably quickly; waiting inside the restaurant now takes longer than at any kebab place.

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Poor Dad@PoorDad

@Musikerie With that many customers coming in, who can do it faster? Loser? Who’s the winner here? I have to say: Considering the number of customers, it actually always goes extremely fast. People are greedy and expect more and more because they’ve already gotten used to “fast,” right?

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Musikerie@Musikerie

@PoorDad Let me put it this way: as a teenager, I’d already scan the display as soon as I walked into the restaurant to see if my Royal TS was ready—or if I should just get two cheeseburgers instead so I wouldn’t have to wait those extra two minutes… Unthinkable today. The last few times I’ve been there, I’ve spent over a quarter of an hour inside, and while waiting for my order, I’ve had plenty of time to watch how the place runs. Most customers sit at their tables with their trays and wait for their food to be brought to them… and I just think, WTF happened here? You see more people waiting than eating. The staff strolls leisurely through the restaurant with their tablets. Back in the day, you waited for your turn to order; today, you wait for your food.

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NEWT@SteelAnacott

@Musikerie As far as price goes, that’s actually true. When I was in the U.S. for the first time in the late 2000s, an MC meal cost less than a bowl of fruit at the supermarket. I remember it clearly because I was so shocked that fast food was cheaper than fruit. You could see the effects of that right away just by looking at the people.

Since then, McDonald’s has become significantly more expensive.

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Poor Dad@PoorDad

@SteelAnacott I'm also from the days when I paid €1 for a cheeseburger, or even €1 for a milkshake or a Coke, etc. But let's not pretend that it's only McDonald's that's been hit with these high prices... it's the whole system.

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NEWT@SteelAnacott

@PoorDad I didn't say that. The problem with McDonald's, however, is that while their prices have risen significantly, waiting times—based on my personal observation—have also increased at many franchises (I suspect this has to do with the introduction of order terminals, which also led to staff cuts, but that's just a guess), but the quality hasn’t improved to the same extent. And if you’re no longer fast and affordable, you lose your competitive edge against companies like $TXRH, which, although more expensive from the customers’ perspective, apparently offer a significantly better value for money.

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Walter S.@Roots

@Musikerie The speed at the restaurant... well, okay...
Price-wise, if you look at it in perspective, I don't get much more for a meal I have to cook myself at the supermarket for the same amount of money... And compared to other places, the price difference basically remains the same...

It’s never been just for poor people... “Rich” people don’t necessarily pass up the fries at the city market, for example...

And McDonald’s is just convenient: by the highway, at the train station, across from the church, on outings, with kids, on vacation, in the evening, at lunchtime, from the village to the nearest branch, etc.

Please don’t forget: McDonald’s is also a real estate business...

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Ver todas as 3 restantes respostas

Smudo@Smudeo

The current P/E ratio is below McDonald's historical 5-year average (typically ~24–25x), suggesting that the stock is relatively undervalued compared to its own historical performance.
At over 46%, the operating margin is exceptionally high for a system-based restaurant chain—a result of its heavily franchised business model (approximately 95% franchisee-operated), which outsources the low-margin restaurant operations to franchisees.
The Investor Day on September 23, 2026, could provide further clarity on traffic recovery, supporting a repositioning of the company.
@PoorDad

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Poor Dad@PoorDad

@Smudeo Mci raised its dividend by 4% today... the next one 😌 Thanks for the in-depth insight

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Smudo@Smudeo

@PoorDad I'll be buying more; I can tell when the sentiment here is negative—which is actually a good thing.
If the crowd is buying here—it's a falling knife 🗡️🔪

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D.S.@Crash-Propheteus

To me, it’s neither a core holding nor any kind of investment. I consider the company to be completely overvalued, with a business model that’s unprofitable in the medium term. Fast food is operating at the level of a restaurant. Constant price increases mask the steady decline in volume. To me, it’s a junk stock that’s on its way out! It belongs in the trash—out of every portfolio.......🧨

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Poor Dad@PoorDad

@Crash-Propheteus I'd accept that if I saw that the stores were empty as I drove by. But this thing is getting more and more popular.
I'd be interested in hearing your specific opinion, though. That also sounds a little like "hate" 🤣

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D.S.@Crash-Propheteus

@PoorDad So, in the past, the stores were open 23 hours a day; today, depending on the location and foot traffic, they’re open a maximum of 18 hours. Why is that, if business is going so great???? This isn’t hate—that’s nonsense—it’s a non-commercial observation based on business principles and 30 years of sales experience in the retail industry..........And the parking lots are mostly half-full or empty, except perhaps during a few peak hours. The fact is that prices have been raised at least five times in the last two years—if only to offset steadily rising labor costs.

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Dirk aus Stade@dirko68

@Crash-Propheteus Labor costs are really more of a German problem. McDoof is actually facing its biggest problems right now in the U.S., where hardly anyone can afford it anymore.

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D.S.@Crash-Propheteus

@dirko68 At current prices, we in Germany aren't very far behind the U.S.

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Silas@DynasticGrind

At rest stops in Germany, McDonald’s is actually always pretty busy because it’s usually cheaper than, say, Serways… Which isn’t exactly hard to do. If you want to get your money’s worth at McDonald’s, you really have to rely on deals in the app, and that’s where the story goes from here: People earn loyalty “bonuses” in the app and then redeem them.

That aside, profits come less from restaurant operations than from leasing out the space. It’s always been that way at McDonald’s. Basically, it’s a real estate holding company masquerading as a restaurant.

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D@DividendenKater

We still have bread at home!

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Manuel@Ghoscht

@DividendenKater An underrated comment. I used to hear that a lot as a kid, too.

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🏊🏻‍♂️ • 🚴• 🏃‍♂️ Endurance Life@MozartsGeist

Hey Dady, great post on an interesting stock. Right now, I wouldn’t necessarily expand my position in my portfolio. I currently hold 1%, and I’d increase it to a maximum of 2%. Your 5% would be too much weighting for me in my scenario. What often gets completely overlooked here is considering the investor’s individual life situation or stage of life.
I’m still convinced of McDonald’s business model. For me, in addition to its role as a franchisor, the company also contributes to the real estate sector to some extent due to its substantial real estate portfolio.

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Poor Dad@PoorDad

@MozartsGeist Thanks, Mr. Endurance! I've been making several portfolio adjustments lately and adding new stocks to my portfolio. I'll be working on the weightings in the near future. I also agree with you about the business model 👍🏽

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🏊🏻‍♂️ • 🚴• 🏃‍♂️ Endurance Life@MozartsGeist

@PoorDad For me, the limit for any single value is 5% max. If that threshold is reached, then (taxes or no taxes): “Out with the beasts!” 😂

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Keineui@Keineui

Did you seriously just write that McDonald's gets people to go out???

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Poor Dad@PoorDad

@Keineui Of course, that doesn't count if you order delivery 😁

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Dirk aus Stade@dirko68

@Keineui I had to smile, too

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Poor Dad@PoorDad

@dirko68 Do you eat only at home?

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Silas@DynasticGrind

@PoorDad As if anyone here can afford or wants to go out to restaurants... 😳

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Keineui@Keineui

@DynasticGrind Calling these places "restaurants" fits with the idea that people are finally getting out into the fresh air

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Poor Dad@PoorDad

@Keineui Try combining a long day of hiking with McDonald's as a reward (without fries—that just makes you feel gross)… such a nostalgic feeling 🚀 😌

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Dirk aus Stade@dirko68

@PoorDad My experience with McDoof is mostly that back then I'd go out, get in my car, and drive through the McDrive. But I've stopped doing that for a few years now.

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Poor Dad@PoorDad

@dirko68 Control McDoof, or else McDoof will control you 🤫🫵🏼

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jkb92@jkb92

From a technical perspective, the stock is in danger of breaking its long-term uptrend if it doesn't recover quickly. It wasn't an investment for me to begin with, but now it's definitely out of the question.

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Poor Dad@PoorDad

@jkb92 I see MCD at 230–240 USD if it doesn't stabilize around 240.

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Dino95@Dino95

I find the stock interesting, but for ethical reasons I can't invest in it... this factory farming is just appalling. There are plenty of other stocks to invest in—why would I invest in something like that?

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Dino95@Dino95

I always compare McDonald's food to warm trash—there's not much difference in quality.

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Basti92@BavarianLion

I have 10 shares in my portfolio, but I don't think I'll be buying more! It's been moving sideways for the past 2–3 years, so it'll take some upward momentum before I change my mind 😉

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Poor Dad@PoorDad

@BavarianLion I don't know how appealing that would be to you, but… an initial yield of over 3% on McDonald's is definitely very interesting.

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Basti92@BavarianLion

@PoorDad Well, my buy-in is €236, so I'm still a little in the red! We'll see what the future brings—this year, I'm focusing more on my ETFs anyway, and on the side, I have to build up my new company so I can keep investing; I'll be all-in soon 😅

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Poor Dad@PoorDad

@BavarianLion I wish you the best of luck! You've got this!🚀

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Bond_James_0815@Bond_James_0815

Compared to a dividend ETF, there are few to no advantages; neither the dividend nor the upside potential is particularly attractive, so it’s more of an “ $TDIV ” for the same dividend and better growth opportunities.

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Poor Dad@PoorDad

@Bond_James_0815 For me, there’s no comparison. McDonald’s is a dividend king with a current dividend yield of over 3% and average growth of over 7% per year. Even with this drawdown, the current entry price is much more attractive than buying at an all-time high. It always comes down to when you buy in, doesn’t it? Or am I wrong? Regardless of whether a stock outperforms the market or not? It’s just cycles.

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Gerald@Irlandfan

Unfortunately, the products have become far too expensive for the target audience; if MCD doesn't turn things around soon, things will only get worse—the competition isn't sitting idly by.

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Poor Dad@PoorDad

@Irlandfan Yeah, but it’s not going to get any cheaper… not anywhere, I think🤷🏽‍♂️ The thing is, when you look at how much research, observation, and analysis McDonald’s is doing behind the scenes, you’d think the competition was asleep… actually

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savvy_investor_3535@savvy_investor_3535

تببويابز
د

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Max Z.@max233

I added another 17 shares to my portfolio. :)

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Gomerdoc@Gomerdoc

My personal dividend yield (YoC) for $MCD is about 166% per year, based on the year 1985 (I think it was sometime in August or September 1985): that’s when I bought the first stock of my life—McDonald’s.
Since then, I’ve bought more shares every now and then whenever I had some money to spare; unfortunately, I also sold some in the 1990s (young families need money—back then, my savings rate wasn’t high, sometimes even zero), but I’ve always kept the position as a rule.

For the shares bought later, the YoC is naturally a bit lower, but still excellent @PoorDad.

Everyone can write whatever they want here: I recommend the following for people with a long-term investment horizon (like I had back then):
1) Take a look somewhere at McDonald’s long-term stock prices from the 1960s to today (WorldMoney or something similar), then kneel down in awe, start crying, and praise capitalism and humanity’s poor health habits.

2) Keep in mind that McDonald’s has carried out seven (!) stock splits at a ratio of one to two, and factor that into the stock price.

3) The company has also gone through rough patches. Right now, we’re in one of those again. But:
If healthy eating becomes trendy, or if people only want to eat raw carrots, McDonald’s will reinvent itself and be the first company to bring that to the masses on a massive scale worldwide, making its profits soar again.
All this talk about bad business models and changing health habits:
A company of this size couldn’t care less.
Who really thinks the managers would look at a trend like that and keep frying greasy fries just to go bankrupt? Not me.
They’ll adapt their business model to changing behavior—and start making money again.

That’s what they’ve always done, and they’ve been extremely successful at it.

McDonald’s: I’m loving it.

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