McDonald's Shares Plunge 32% as Treasury Yields Rise

McDonald's (MCD) shares have declined sharply by 32% over the past seven months, mirroring a similar 32% rise in the 10-year U.S. Treasury yield.

This downward pressure on McDonald's stock reflects investor concerns about the attractiveness of its dividend yield relative to safer government bonds amid ongoing Federal Reserve interest rate hikes.

McDonald's current dividend yield stands at 3.3%, with a payout ratio of 61% and a solid 3-year dividend growth rate of 8.2%, supported by a GF Value™ indicating the stock is modestly undervalued.

The company holds a GF Score™ of 74/100, reflecting strong profitability and valuation metrics despite weak momentum.