McDonald's (MCD) stock is down just under 20% in 2026 and about 28% below its lifetime high, amid declining consumer traffic, tougher unit economics and price increases. The article also notes that GLP-1 and other diet drugs could become a sustained limit on demand. The forward P/E has fallen to roughly 19, roughly in line with the S&P 500 and low on a historical basis, while the dividend yield has risen to roughly 3%, with the payout viewed as well covered. Same-store sales rose 1.3% year over year in the second quarter, driven mainly by higher ticket prices amid unfavorable traffic trends, and earnings per share rose roughly 5% on a currency-adjusted basis. The author says many S&P 500 companies offer a more appealing profile in earnings growth and valuation, the headwinds are likely to continue near term, and patient investors may be able to get the stock at an even steeper discount.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
MCDdividendsvaluationconsumer goods
Open a keyword to see other news on the same topic.
Related news
- McDonald's Is Crowned a Dividend King. Is Owning 65 Shares Worth It for $500 in Yearly Dividend Income?
McDonald's (NYSE: MCD) has raised its dividend for 50 consecutive years, qualifying as a Dividend King, and its forward yield is nearly 3.2%. Buying 65 shares for nearly $16,000 would generate about $500 in annual dividends, with the quarterly payout recently raised to $1.93 per share. The stock is down nearly 30% from its February record peak amid food price inflation and cautious consumers, with U.S. same-store sales up just 0.8% in Q2 and revenue up 4% to $7.1 billion, still below analyst estimates. The article says the risks remain, especially with longer-term Treasuries yielding above 5%, but concludes McDonald's could be a solid addition to many income-growth portfolios.
- Has Trump broken his McDonald promise ?
- Up 35%, How Long Can Coca-Cola Continue Crushing the S&P 500?
Coca-Cola has returned 35% year to date, versus 14% for the S&P 500, its best year since 1996, but the article argues PepsiCo, with a total return of around -3% so far in 2026, has become more attractive on valuation and income. Coca-Cola trades at 29 times earnings compared with PepsiCo's 17, while PepsiCo's dividend yield of 4.2% is higher than Coca-Cola's 2.2%. PepsiCo's revenue growth of 6% in its latest quarter was close to Coca-Cola's 7%, after it cut prices on some items and added healthier ingredients. Both companies hold Dividend King status, with 64 and 54 years of dividend increases respectively, and analysts forecast 4% revenue growth for Coca-Cola in 2026. The author suggests Coca-Cola could struggle to attract additional buyer interest, though its growth is likely enough to keep income-oriented shareholders.
- Procter & Gamble Has Raised Its Dividend for 70 Straight Years. Here's Why That Matters in a Sell-Off
Procter & Gamble has raised its dividend for 70 consecutive years, making it a 'Dividend King' that has increased payouts for at least 50 straight years. Its 2.6% forward yield looks modest next to the 5% yield on the 10-Year Treasury, but P&G's total return with dividends reinvested was nearly 150% over 10 years and 1,310% over 30 years. The article credits its resilience to essential household and personal care products, after P&G cut its portfolio from around 180 brands in 2014 to 65, focusing on roughly 20 that generate over $1 billion in annual sales. Free cash flow rose 8% to $15.1 billion in fiscal 2026, covering $10.2 billion in dividends, and P&G expects organic sales to grow 1%-3% in fiscal 2027. At $160, the stock trades at 23 times the midpoint of its fiscal 2027 core EPS forecast, a multiple the article calls a bit high relative to its growth potential.
- Why I Just Invested in This Dividend King -- Even Though a Smaller Rival Has Grown Faster.
The author bought Procter & Gamble (PG) for defensive stability, citing its 70 straight years of dividend increases and a market trading at a historically rich valuation. He weighed Church & Dwight (CHD), whose 4%+ annual organic revenue growth and 8%+ adjusted EPS growth over the past decade produced roughly 9% annualized total returns, but noted it trades at 26 times forward earnings with a yield of about 1.2%. P&G, by contrast, trades below 22 times forward earnings with a yield near 3%. The author estimates P&G could deliver about 8% annualized returns if earnings grow 5% per year with no valuation change, and 9–10% if its valuation recovers. He concludes P&G offers better long-term total return potential without needing fast growth.
- Should You Buy the Dip in Nike Stock While the Market Is This Nervous?
Nike's stock has dropped 76.5% over the last five years and nearly 40% in 2026 alone, compared with a roughly 12% gain for the S&P 500. The company expects a high-single-digit percentage drop in revenue for fiscal 2027, yet it posted first-quarter fiscal 2027 net income of $712 million (versus $727 million a year earlier) and holds $8.3 billion in cash against $11.1 billion in total debt. The author views Nike as a potential income stock if revenue stabilizes, with the dividend currently yielding 4.2%, and says he is not buying the dip for now.
Related markets
Latest news
- Alphabet Q3 Earnings Call Highlights
Alphabet reported third-quarter revenue up 25% to $127.6 billion, its 13th straight quarter of double-digit growth, and operating income up 30% to $40.6 billion. Results were offset by an $8.2 billion unrealized loss on its SpaceX investment and negative free cash flow of $9.1 billion, as capital expenditures and inventory investment rose. Search revenue grew 12% to $63.3 billion, while Google Cloud revenue more than doubled to $30.7 billion, operating income tripled to $11.1 billion, and Cloud backlog reached $561 billion. The Gemini app reached 1 billion users. Alphabet kept its 2026 capital-spending forecast at $195 billion to $205 billion and expects spending to rise significantly in 2027 to build AI infrastructure.
- Asian shares and U.S. futures are mixed after Google parent Alphabet's earnings disappoint
Asian shares and U.S. futures were mixed after Alphabet's quarterly earnings came in below expectations, weighing on big technology stocks. Alphabet shares fell about 10% in after-hours trading, while Microsoft rose nearly 3% after better-than-expected results. Japan's Nikkei 225 edged up 0.2% to 64,073.17, while South Korea's Kospi lost 2.2% to 5,880.25 as Samsung Electronics sank 5.4% despite strong quarterly results. Brent crude fell 1.2% to $110.32 a barrel, and the 10-year U.S. Treasury yield eased below 5.00% after jumping to around 5.04% on Wednesday. The Federal Reserve held rates steady, with two officials favoring a hike.
- MB expands business connection opportunities for SMEs
MB held the 'MB SME CEO MEET 2026' event on October 27 in Hanoi, bringing together nearly 500 guests, including 150 SME business leaders, with sports exchanges alongside international pickleball player Hayden Patriquin and networking sessions such as CEO Networking and Business Matching. Drawing on a network of nearly 400,000 SME customers and ties with many large enterprises, MB expects to help SMEs expand their customer and supplier bases and participate more deeply in value chains. The bank introduced the SME Premier privilege package worth up to VND 220 million for loyal customers, subject to program conditions. From October 21, MB has applied a program cutting lending rates by 1.5-2% a year on new disbursements in five priority sectors.
- Market Rhythm 29/10: Constant Swings, Red Spreads Across Many Sectors
As of midday, the VN-Index fell 5.41 points to 1,761.24, as many bank stocks trimmed gains while real estate, oil and gas, retail and food stocks faced selling pressure. Against the trend, steel and rubber stocks rose, with HPG up 3.37% and GVR up 3.17%, and market liquidity reached VND 5.5 thousand billion. At the opening, the VN-Index slipped 0.23 points to 1,766.42, while the HNX-Index gained 0.32 points to 260.18 and the UPCoM-Index lost 0.48 points to 125.26. Overnight, U.S. stocks rose as investors reacted to the Federal Reserve's latest rate decision and awaited earnings from big technology companies, with the S&P 500 up 0.28% to 7,743.98, the Nasdaq Composite up 0.27% to 26,549.85, and the Dow Jones up 97.53 points (0.19%) to 52,475.10.
- Your fridge could one day stake Ether, launch memecoins: CFTC chair
CFTC Chair Michael Selig said autonomous AI agents could challenge financial rules built around human traders, and regulators need to adapt. At the agency's inaugural Frontier Forum in Washington, he offered the example of a refrigerator buying groceries with money earned from staking Ether, or even launching its own memecoin. An eToro survey found that 79% of U.S. millennial investors and 77% of Gen Z investors already used or were open to using AI to select or adjust their investments. Selig raised questions about whether AI agent developers would need to register, who would be liable if an agent went rogue, and whether a new know-your-agent (KYA) standard is needed. He also said AI could help smaller traders access risk management tools, but agents could react unexpectedly, similar models could create correlated trading behavior, and the speed of autonomous transactions could complicate market surveillance.
- Asian currencies mixed as dollar steadies after Fed hold, PCE eyed
Asian currencies traded mixed on Thursday as the dollar steadied after the Fed held rates, with investors awaiting U.S. inflation data and policy decisions in Europe and Japan. The Fed kept its policy rate at 3.75%-4.00% in a 10-2 vote, and Chair Kevin Warsh expressed confidence inflation could return to the 2% target without significantly slowing growth, though he offered little clarity on a possible December hike. Markets still priced a 78% probability of a December increase, according to the CME FedWatch tool. The yen edged higher ahead of the Bank of Japan's decision, expected to keep its rate at 1.25%, while the New Zealand dollar fell as much as 1.7% to around $0.5585 after the RBNZ unexpectedly held its cash rate at 2.75%, before steadying at $0.5622.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.