McDonald’s Corp (NYSE:MCD) stock has fallen to four-year lows. " Here’s why.
• McDonald’s stock is trading near recent lows. What’s the outlook for MCD shares?
Sizing Up McDonald’s Stock Former hedge fund manager Whitney Tilson recently took a look at McDonald’s stock and compared the current valuation and thesis to when he looked at the stock back in June. " Tilson asks in a newsletter.
Tilson highlights several strengths of McDonald’s, including boosted margins through franchising, free cash flow doubling since 2018 and strong shareholder returns through share buybacks and a 3%+ dividend yield. "Over the past two decades, revenues have barely moved.
" McDonald’s growth has slowed in recent quarters, which may be contributing to the declining stock price. 3% in the second quarter of 2026.
" Tilson doesn’t ignore the challenge of restaurant stocks from weight-loss drugs, but sees the valuation of McDonald’s stock too cheap to ignore. 6 times consensus analysts’ estimates for next year.
" Tilson called McDonald’s stock fairly valued back in June. He reaches a different conclusion this time.
" Read Also: All In On McDonald's Stock? Social Media User Wants Advice on Fast Food Giant, Investors Aren't Lovin' It Tilson’s History with McDonald’s Stock Tilson previously owned McDonald’s stock in late 2002, a position that he admits he later "backed up the truck" for by adding more shares in early 2003 when they were under $13.
At one time in 2003, the stock was around 10% of Tilson’s hedge fund. "It was the biggest win of my early investing career," Tilson said.
The investor recalls shares doubling two years after 2003. In a five-year time period, Tilson watched McDonald’s shares go from under $13 to the mid-$60s.
See More: Top Growth Stocks He later sold the stock during the bear market in 2008, recalling that McDonald’s was one of only two stocks in the Dow Jones Industrial Average that were positive that year, with Walmart being the other. Tilson said this ended up being a mistake.
75 in March 2026. Time will tell if Tilson is right about McDonald’s stock again, but the fact that shares trade at four-year lows does offer an interesting entry point for investors.
