Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

MCD is perhaps my favorite stock of all time. It’s a qualified dividend that is a sneaky real estate play since they own the land under their restaurants.

Hi Sven, thanks for hearing my biggest wish and making this video. Best KZfaq channel!

I bought yesterday in Germany Big Mac Menu + one extra Big Mac = 16.5 eur. I say its a rip off. Mc Donalds will not see me in a long time, junk food+ expensive. The stock will fall even more.

I go to a nearby MCD's 2-3 times a week, and always when I travel, for their coffee only. it's consistently good and a reasonable (low) price...Buffet & Munger too have talked about "would have/could have/should have" invested in MCD's (in hindsight), but did not, b/c they originally didn't think it had a competitive advantage over the other fast food restaurants. IMAO, it does and MCD's advantages over the others in the US, include their locations and how well the restaurants are managed and the employees trained - I always marvel at their consistent speed and efficiency at the drive-thru.... Outstanding analysis and insights as always, including the overview at 3:37. Thank you..

@3:58 According to ValueLine, MCD has 5-yr EPS & dividend growth rates of 8% and dividends are expected to grow by 8.5%. So if MCD continues this trend through 2034, EPS would be $25.78 and dividends $13.45. 11 P/E would be $284/share with 4.74% dividend yield and 5.19% yield on cost (5.56% yield on Sven's $242). Being paid over 5% yield to wait on the market bump up the valuation multiple on a stalwart like MCD doesn't seem like such a poor bargain.

Yes, it's a bit overvalued, but the business is so good with so much money from one of the most famous and successful brands... It's irresistible like its tasty, yummy food for many of us! So it's not the investment that will make you rich in a decade, but certainly, better than many others right now. Long with a small position. Thanks!

Hi Sven, what do you think about the Drop of Carl Zeiss Meditec Stock, Is it a value chance?

Great point at the end of the video. I'm also thinking about the possibility of a valuation drop in the future. MCD has an ROC of around 20. I looked at WMT between 2000 and 2010. WMT had a similar ROC at that time, around 20. Earnings per share were up, but the share price hasn't moved anywhere in ten years.

Best Channel on KZfaq

I will start accumulating my position once it goes under $1. Get ready for an epic collapse.

MCD is high risk for me at now see negative Equity ratio. So much long therm debt should be considering.

I think cheap fast food will always gain popularity during poor economic times. Especially with covid savings near gone and record credit card debt.

Sven, good point on the key risk- moving to a lower PE of 11 over time. Interesting to hear what can cause it considering that PE does not go down at current FED rates and likely direction of the rates is either down or stay the same (otherwise it will be hard for the US to service their debt)

I can’t in good conscience invest in this company due to how terrible the product is.

Nothing to add? They're sitting on a 37B debt pile and nutrition trends and consumer behavior is changing!

Potentially a random question, but do you ever consider the implication of taxes on your returns? Since MCD is a US company, you'll obviously have to pay 10-30% witholding tax depending on your location (15% for me since I'm in the UK) and that'll eat into your dividend return over time. Arguably, not that much with MCD, but you get my point. Thanks for the videos! Long-time fan here :)

Another great and educational video from Sven. Thank you! Hope you can check the Comcast stock - NASDAQ: CMCSA? (-9.72%) past 5 years, P/E ratio -10.13. Div yield-3.25%. A VALUE play?

McDonald’s and fast food sucks now. Quality and portion size has noticeably decreased while prices have inflated too much and are bridging the price gap with sit down restaurants

Anyone that has eaten lately in MCD knows that this company is in serious troubles. Quality drastic drop, poor choice compared with competence and skyrocketing prices. Formula for disaster.

Thanks for the video Sven.

Here in Argentina MCD it's quite expensive in comparison with other (much better) restaurants. But, anyway, I would eat a Big Mac at UD 3, and I would also buy MCD shares at a PE 10.

Amazing explanation of how P/E and earnings work, thx Sven.

Extremely disagree. You should know the audience and politics behind the brand. 1- The people who go to McDonalds are expecting delicious cheap food. However, it’s not cheap anymore. 2.if you are up to date with politics you will see that a lot of people are boycotting McDonalds especially in the middle east. I, myself as a middle eastern have seen a huge drop in audience in McDonalds and people are now used to NOT eating it and found another local/different alternative.

Nice and fair video, I really like your content! I think mcd is great for the large long portfolios. For me, I'm still way to early in my investing career, I can take much more volatility for a higher return, but eventually there will be a time for these kind of stocks.

10% returns dont even equal inflation and capital gains taxes for me 😢 i want 100% a year returns

Please have a look at Deere & Co … should be a potential buy at these levels.

I have learned a lot concerning crypto progress this time and would like to join in. I wish I can get a good mentor

Isn't inflation incorporated into the growth of companies?

Nice Video, very informative ! I bought it 2 weeks ago and looking forward to stock it up at this price range from time to time. :)

Hello, i am italian and all i can say is that mc donalds quality is soooo disappointing for me! Every time i go there i really cant believe how ridiculus are the ingredients in my burger: no salad, no tomato, no onions... Just a burger a tiny slice of bacon and maybe some sauce and a few pickles: wtf. Honestly mc donalds is everywhere and they can provide you with a quick standardized meal but i really dont understand how they can do that with such bad products... They arent even cheaper than other fast foods!!! I don't know how to analyze a business but how can you invest in such a disappointing experience

McDonalds and great business, these words made me smile, ahahah, you are funny guy Sven

What about EPS growth caused by over-leveraging the balance sheet with buybacks? Is the growth from this sustainable and to be projected? Not sure. Many restaurants cies have inflated the liability side of their balance sheet to maximize div/buybacks in the last 8-10 yrs.

Nice analysis, thanks. So low risk but it could be not a great investment. Some predict a rotation from tech into stocks like this this year and since it is low risk anyway, would you agree that buying MCD is a great move?

McDonald’s is a money factory! That’s all!

Solid company. The thing is, we can "only" expect a 10% annualized earnings growth (including dividends) for a PE Ratio of 22? We had Google under that ratio some months ago with forward expected earnings growth in the mid-teens. It's true that the "safety" of this stock has kept its PE Ratio in a premium range, but this can change very quickly, as it happened with Starbucks. It might happen to Costco too. Who knows... I would not like to take that risk.

Mc Donalds with 5% Dividend. Would Sell everything and live from the dividend

thx! how does SBUX compare with MCD? lower stability, lower earnings growth for the following years?

Why you don't care about the debt of Mcd?

Imagine if you had bought 1000 MCD shares at 19USD back in 2003...

Great video Sven! 😊 Will you explain why multiplying the PE to the EPS results in the stock price? Or maybe if you are in a very kind mood, make an entire video about it? 😅

Great Video Sven. Can you please do one for brookfield asset management (BAM)? It looks like a solid interesting business with good dividend growth.

If McDonalds goes to a P/E of 10 Ill sell my soul

Hi, I just found out about this channel and the frist video I saw was the Excel Template of valuation. I didnt understand the Terminal multiple can someone explainm how I calculate it?

Stop giving away my ideas 😂 I noticed them at quite a fair price about a month or two ago. Starting to build a position but can’t do it well enough if you tell everyone about it 😅

Thanks for the video 👍🏻

AMAZON 2 TRILLLIOOOONNNN. RIDE THE BULLLLLLL

What if the market stays high until past the election?

What is your opinion about Nomad Foods? Price to FCF around 8 or 8,5

Hi Sven, Shouldn't you value Mcd based on FCF? why did u value using EPS? thanks.

If profits double stock price will not stay more or less stable. Market will react

Hey Sven, what do you think about the negative equity in the balance sheet of MCD?

Nominal revenue is where is was 15 years ago, on a real basis sales are down substantially in that time. So this is not a growing business. It sells for 7X (and recently almost 10X) sales, which is insane and therefor it depends on very high margins to stay elevated to eke out any yield from a purchase at this price ... and that is where returns have come from - operating margins have expanded to 46% - and the rest of the return has come from multiple expansion and buybacks ... and thus, given that it would be a stretch to imagine margins could get much better, and price multiples are already very elevated, and sales are not growing much, even on a nominal basis - your only source of return in MCD would have to come from buybacks. And so, the yield on buybacks at the current price would be 4.5%, less than you can get in risk-free t-bills, and with a lot of downside risk, if margins or multiples contract.

I'm honestly surprised. I go to Mc maybe 3 times a month. There has NEVER been the same workers there. Wonder how they deal with the turnaround rate

Sven PDD Growth+value!

good comments. thx Sven.

“Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than in the corrections themselves.”

What timing..i bought last week $250

Ambev any good seven But my favourite stock of choice is weatherspoons 😊 and I also hold n91 div 7% and management but stock like drunken soldiers 😮

Would love to see your update on SAP ☺️

I am invested in Arcos Dorados $ARCO Maybe more geopolitical risk but way cheaper and more growth

It will not continue expanding, it has peaked already good business but it is boring and no growth and taking that into perspective it is expensive, div too small

5 years I am entering in mac and say to myself they know how to invest money

🗽 I do not understand the negative equity in the MCD balance sheet. ....same with SBUX. .

Can you revisit Eurofins stock after Muddy Waters report? Is this short term noise?

Can McD raise prices at least equal to their suppliers raising costs?

Just my two cents, travel a fair bit with work, many an airport/train station/high street around Europe and the like. You NEVER see an empty Maccys...ever. plenty an empty Burger King and the ilk...but never the Maccys. Nevermind the local politics, situation, "GDP", etc People need their Maccys, full stop. That's the advantage they have over companies such as Starbucks, people get hungry, period, AND they are addicted to the sugar/fat/tastyness/etc Also, their business model is almost cruel (owning the land, shifting the risk to the "owner", etc) Could there be a naff period where people only go to Maccys once a week as opposed to now, definitely. Could they trim all the restaurants that aren't making absolute bank, yes. Will people stop shovelling the nuggies into their face, no...they simply will not. The only thing I've ever seen (please batter me on this if I'm way off the mark), is the debt they're carrying. They are a "cheeky REIT" that doesn't have to pay the divs in my opinion, if they can manage this, then just buy a share every month when you keep seeing the queues...in my opinion. Love the vids Sven, keep em coming 👌

Funny I can see the mcdonalds symbol in the graph 😄

McDonald’s Coffee 🚀 🇨🇦

I am a big fan of MCD but I am surprised they did not go bankrupt a long time ago ... 🙂

In Deutschland nennt man das Milchmädchenrechnung

S&p 500 gives 12%❤

Dropped today

VERY INTERESTING !!

but ozempic may kill it

Hey Sven are you still personally investing?

Where will McDonalds grow to? China? Russia? Near East? Africa? Are you kidding me?

No comment to the balance sheet? These huge Treasury stocks are a big issue for me. I would never buy a company with negative equity capital.

anyone here like paying 25bucks for a burger ?

Sven, you always take the time to point out fat or lazy people and here you are talking about Mcdonald's lol. But back to what matters, thank you for your data point/analysis it is still a no for me.

MCD IS COMPLICIT IN GENOCIDE. I WILL NEVER BUY THIS STOCK

Totally off mark

Eurofins!

Boycott it please