"McDonalds Is Cooked As A Company" CEO BACKLASH!!!
In a Nutshell
Frank claims McDonald's (MCD) is "cooked" and worth shorting, but technicals show an uptrend across timeframes, and fundamentals via Investing Pro indicate only 10% downside to fair value (~$294) despite recent highs and downward analyst revisions. Better short opportunities exist in overvalued names like Carvana during consumer slowdowns, given MCD's strong revenue growth (5.7% global comps), record sales, dividend hikes, and expansion to 50,000 restaurants by 2027. Trade on data, not TikTok opinions—expect 10-15% retracements, with greater downside risks elsewhere in downturns.
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Frank shared: >> McDonald's is completely cooked as a company, and I would short their stock if I were you. << Ricky hopes this was a joke and analyzes McDonald's (MCD) technically and fundamentally to assess if it's worth shorting.
McDonald's shows an ascending uptrend on daily, weekly, and monthly charts. Ricky questions shorting MCD out of many overvalued or overbought stocks.
Using Investing Pro (less than $10/month, first link in description), MCD's fair value indicates 10% downside. Recently hit all-time highs, not super cheap. Potential retracement to around $290, near fair value of $293.95. Raised dividends for 50 consecutive years, paying shareholders. 23 analysts revised earnings downwards for upcoming periods due to lower 2026 guidance and expected consumer spending decline.
If consumer spending slows, better to short Carvana (lost 95-97% from $372 highs to $3.55 lows in 2022 post-pandemic pullback) than MCD (10-15% drawdowns). Opportunity cost favors overvalued stocks like Carvana.
PE ratio: 27.2x earnings (not super cheap for retail/real estate company, but far below Tesla's 401x). Revenue: $26.8 billion/year. Net income: $8.5 billion.
Revenue growing quarter-over-quarter long-term. Global comparable sales up 5.7% in Q4. Highest single sales day in history. 50,000 restaurants expected by end of 2027. 210 million 90-day active users, up 19% YoY. Capital expenditures projected at $3.7-3.9 billion for 2026. Flowcharts show international business, high-growth markets, US revenue, costs, gross profit, operating profit, net profit for LTM and quarters (Q1-Q4).
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