MCD Should I Buy
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McDonald's Corp (MCD) is not a strong buy for a beginner, long-term investor at this moment. While the company has shown solid financial performance and some positive catalysts, the lack of strong proprietary trading signals, cautious congressional trading activity, and a mixed analyst sentiment suggest that waiting for a better entry point may be prudent.
The technical indicators are mixed. The MACD is positive and expanding, suggesting bullish momentum. The RSI is in the neutral zone, indicating no overbought or oversold conditions. Moving averages are bullish, with SMA_5 > SMA_20 > SMA_200. However, the pre-market price is slightly down (-0.32%), and the stock is trading near its resistance level (R1: 331.122).
Hedge funds are significantly increasing their holdings in McDonald's, with a 594.79% increase in buying activity last quarter.
The company plans to accelerate global store openings with a projected growth rate of 4.6%, which could expand market share.
Q4 2025 financials showed strong growth, with revenue up 9.72% YoY, net income up 7.34% YoY, and EPS up 8.21% YoY.
Congress members have been selling the stock, with 4 sale transactions and no purchase transactions in the last 90 days, indicating cautious sentiment.
The gross margin slightly declined (-0.10% YoY), which could signal potential cost pressures.
Mixed analyst sentiment, with some firms maintaining Neutral ratings and others expressing concerns about future growth potential.
McDonald's delivered strong Q4 2025 results, with revenue increasing by 9.72% YoY to $7.009 billion, net income rising by 7.34% YoY to $2.164 billion, and EPS growing by 8.21% YoY to $3.03. However, gross margin slightly declined to 57.53%, down 0.10% YoY.
Analyst sentiment is mixed. Positive ratings include Citi raising the price target to $375 and BTIG upgrading the stock to Buy with a $360 price target. However, some firms like Mizuho and Guggenheim maintain Neutral ratings, citing uncertainty about future growth. The price targets range from $320 to $375, with the stock currently trading near its all-time high of $333.38.
