McDonald's Has Lost a Fifth of Its Value in 2026. Is It Time to Buy?
Key Points
A variety of business headwinds have caused a substantial pullback for McDonald's stock.
McDonald's is a great company, but challenges facing the business could persist.
- 10 stocks we like better than McDonald's ›
McDonald's (NYSE: MCD) stock has been under pressure this year. The company's share price is down just under 20% across 2026's trading, and it's off almost 28% from its lifetime high.
The company is facing declining consumer traffic, more challenging unit economics, and price increases that have complicated its value proposition, as well as the possibility that GLP-1s and other diet drugs will become a sustained limiting factor on demand.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
With the stock down substantially, is McDonald's a good buy right now?
Image source: Getty Images.
McDonald's share sell-off has lowered the company's forward price-to-earnings ratio to roughly 19. Sell-offs have also pushed the company's dividend yield up to roughly 3%, and the payout looks well covered despite recent headwinds facing the business.
While the company's forward P/E is roughly in line with the S&P 500 (SNPINDEX: ^GSPC) and looks low on a historical basis, the company's valuation should also be viewed in the context of its growth. Global same-store sales increased 1.3% annually in the second quarter, with gains primarily driven by higher ticket prices amid unfavorable traffic trends. Meanwhile, earnings per share increased roughly 5% year over year on a currency-adjusted basis.
McDonald's is a great business, but there is currently no shortage of companies in the S&P 500 that offer a more appealing profile in terms of earnings growth and valuation. The headwinds facing the business are likely to continue in the near term, and I think that patient investors may be able to buy the stock at an even steeper discount.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McDonald's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,363,905!*
Now, it’s worth noting Stock Advisor’s total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 23, 2026.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.
Recommended Articles
