Stock Pulse
McDonald's (MCD) is seen as a defensive stock and a top pick amidst market volatility and potential recessionary concerns, potentially benefiting from consumers "trading down" [1], [2]. The company boasts a strong dividend history, global presence, and high operating margins [3], [7]. However, concerns exist about its future growth potential due to decelerating returns on capital employed and a lack of reinvestment in growth initiatives [4]. While MCD has shown resilience, upcoming earnings are projected to be slightly down year-over-year, and the stock is currently trading at a premium compared to its peers [6], [8]. Positive same-store sales growth and a successful franchise model suggest long-term potential, but the company faces challenges like increased input costs due to tariffs and broader industry headwinds [5], [9], [10].