MCD

Hi, I'm Jimmy. In this video, we're looking at McDonald's, ticker symbol MCD. So, in this video, we're going to go through the basics of McDonald's business, run through some of the numbers, and then we're going to try to come up with a fair value for McDonald's stock to see if it's worth investing in today.

There are many comments about McDonald's. When there are many comments, it also means that the stock has fallen, that the price-to-earnings ratio is becoming attractive, and that dividends are becoming higher.

I have discussed McDonald's a few times already, probably once a year. So, we need to see where we stand now in terms of the returns side.

McDonald's is another of my favorite stocks at the moment. I ranked it among the top 10 stocks. I calculated a fair value for McDonald's stock at $330 per share. The current market price is $262.

This leaves it with a 26% rise over the next 12 to 18 months.

One of my favorite positive factors for McDonald's, which I think the market underestimates, is its technological innovation across multiple categories, which could benefit McDonald's in the short and long term.

Food delivery networks and the spread of this technology allow McDonald's to reach more consumers on more occasions. You no longer have to leave your home to eat McDonald's. In addition, the company benefits from improvements in automation and robotics.

The food delivery networks I mentioned no longer need humans to deliver them. Over the next five years, more and more of these deliveries will be carried out by robots, which will reduce the cost of servicing these customers.

In addition, McDonald's is integrating automated kiosks into its stores and locations. This reduces the need for cashiers and lowers labor costs at every McDonald's location. Collectively, these innovations are something McDonald's hasn't seen in its business for decades.

I am excited to see how the company will prove successful in integrating and using these new technologies in its operations.

McDonald's might be the most interesting and surprising inclusion into my top stock rankings in 2026. I've calculated an upside of 28% given my fair value estimate at $340 and the current market price of $265.

McDonald's, like Visa, is a stock that rarely trades at this much of a discount compared to its fair value estimate. But the restaurant industry has faced significant headwinds in 2026.

In addition to some of the consumer trends like uh healthier lifestyles and uh increasing usage of weight loss treatments that have really reduced restaurant visitation in 2026.