McDonald's Stock: Buy, Sell, or Hold?

Core Viewpoint - McDonald's is facing challenges with its financial performance and customer base, leading to mixed opinions on whether to buy, sell, or hold the stock [2][14][16] Financial Performance - In Q4 2024, same-store sales increased by only 0.4% globally, with a concerning decline of 1.4% in the U.S. market [4] - Management indicated that core customers are experiencing financial strain, which is impacting sales performance [5][10] Valuation Analysis - The price-to-sales ratio is above its five-year average, while the price-to-earnings ratio is slightly below its long-term average, suggesting the stock is not a deep value [6] - The stock price is currently within 5% of its all-time high, reached in mid-2024, indicating that it is not on sale [7] Investment Perspectives - The case for selling McDonald's stock is strong due to current underperformance and a lack of upside potential [2][3] - Holding the stock may be reasonable for long-term investors, as it has a history of dividend increases and a current yield of 2.4% [12][13] - Buying the stock is considered risky at this time, given the financial constraints faced by core customers and the potential for better buying opportunities in the future [15][17]