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Former hedge fund manager Whitney Tilson calls McDonald's moderately undervalued after shares fell to four-year lows. He cites strong margins, cash flow and a dividend yield above 3%, despite slower sales growth.

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00:00It's Benzinga, bringing Wall Street to Main Street.
00:03McDonald's shares have fallen to four-year lows, but former hedge fund manager Whitney Tilson says the stock may offer
00:08a buying opportunity.
00:09Shares have declined another 14% since June, when Tilson considered the stock fairly valued.
00:14He now calls McDonald's moderately undervalued, citing strong profit margins, free cash flow, and shareholder returns.
00:21Free cash flow has doubled since 2018, while the company offers a dividend yield above 3%.
00:26However, global comparable sales growth slowed from 5.7% in the fourth quarter of 2025 to 1.3%
00:34in the second quarter of 2026.
00:36McDonald's trades at 17.6 times estimated earnings for next year, below its historical average of 19.7 times.
00:43For all things money, visit Benzinga.com.

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