McDonald's CorporationMCD McDonald's Corporation fair value $317–$531

McDonald's operates a highly resilient, asset-heavy, heavily franchised model. It functions largely as a real estate and royalty collection business, resulting in industry-leading operating margins (45%+) and massive, consistent free cash flowFree cash flowOperating cash flow minus capital expenditures. The cash a business generates after maintaining and growing its asset base — the closest accounting proxy for owner-economics. generation. We initiate at Strong Buy based on a 49.37% discount to our $423.76 fair valueFair valueOur composite estimate of intrinsic per-share value, blended across DCF, exit-multiple, and reverse-DCF methods. Reported as a low/mid/high range to capture model uncertainty. midpoint.

• Intangible Assets (Global Brand Recognition)
  Intangible Assets (Global Brand Recognition)
• Cost Advantage (Unmatched Supply Chain
  Cost Advantage (Unmatched Supply Chain Scale)
• Cycle upside
  Consumers prioritize convenience and value, accelerating digital and delivery adoption. Commodity deflation boosts franchisee profitability, spurring rapid global unit expansion.