McDonald's Stock Slumps to New 52-Week Low Ahead of Investor Day

McDonald's stock has fallen to a new 52-week low of $248 per share, down 15.6% over the past year and valued at around $176.3 billion. This comes ahead of the company's Investor Day on September 23, where management plans to outline strategies for reviving its US business and accelerating international growth.

Despite the share price weakness, McDonald's has reported solid growth in recent earnings. In the second quarter, revenue reached $7.1 billion, a 3.8% increase from last year, while net profit hit $2.36 billion, up 4.9%. Analysts remain mixed but generally constructive on McDonald's valuation, with several houses seeing upside potential.

Jefferies analyst Andy Barish maintains a Buy rating and a price target of $325 per share, while Deutsche Bank also reiterated a Buy rating. BTIG analyst Peter Saleh has reiterated a Buy rating with a $350 price target, but Seaport Research Partners initiated coverage with a Neutral stance.

GuruFocus analysis suggests that McDonald's is modestly undervalued, estimating an intrinsic value of $325.27 versus its current market price of $252.78, implying a potential valuation gap of 22.3%. The company's current P/E ratio sits below its five-year median, indicating it trades at a discount to its recent historical valuation.