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McDonald's is the most obvious buy: its RSI is at levels unseen since 1974, and with bearish headlines on an already beaten-down price, there is little room to get more bearish. Fear articles and downgrades are institutions pushing the price lower so they can load up. This company has survived every recession, crisis and panic for 50 years, so RSI this low on a company this safe makes it a generational entry to build patiently over time. x.comÂ
McDonald's is basically a REIT, so dips like this are good buying opportunities for a long-term portfolio. The stock is 24% below the all-time high it set just a few months ago and trades near a two-year low. x.comÂ
McDonald's leadership has lost credibility: at a major investor day, the CEO is only "hoping" for a turnaround, which is reason enough for shareholders to sell. The brand has drifted far from the era of movie tie-in glasses and toys for films like Shrek and Toy Story, and now the CEO does not even want to eat the food. x.comÂ
McDonald's looks attractive in one of its largest drawdowns ever, with its highest dividend yield in 11 years and its lowest P/E in six years. It was appealing at $247 and is a stock to commit to at $239. x.com x.comÂ
McDonald's business isn't stressed even though its chart is. The stock sits below its 200-week EMA, with momentum starting to turn bullish. x.comÂ
McDonald's has turned from a growth equity into a bond proxy, a vicious cycle as Treasury yields rise. Per @The_Prophet_, yields moving from about 4% toward 5%+ raise the discount rate on its slow-growing cash flows, give income investors a risk-free alternative, and pressure its capital-intensive franchise system. Investors forget McDonald's shares were unwanted in the mid-2010s. x.comÂ
McDonald's is trading at its highest free-cash-flow yield in a decade, outside the COVID crash. x.comÂ
McDonald's is getting more interesting for dividend investors: its dividend has compounded about 14% a year for 26 years since 2000. x.comÂ
McDonald's remains a little too rich at 20x earnings for mid-single-digit growth, even though it is one of the best businesses ever created and will probably be around in 100 years. That holds despite its second-worst drawdown in 20 years, down 23.6% from its highs, per Fiscal.ai. x.comÂ
Wendy's carries considerable execution risk despite trading at just 7x price to free cash flow versus a historical norm of about 21x, because free cash flow is forecast to fall 22% this year and 15% in 2027 before a potential rebound. McDonald's is the preferred choice. x.comÂ