McDonald's Value Hidden in Plain Sight: Real Estate Dominance

Tobias Carlisle and Tim Travis of Value Options Letter discussed McDonald's stock on their podcast. The company has roughly $100 billion worth of real estate in its portfolio, making it more than a burger chain.

Value investors use options trading to get paid while they wait for the market to recover. In this case, they sold a 260 put and collected around $3.50, which is relatively short-term. The stock's 52-week low was at 270-267, but by selling puts, they were able to avoid taking the full hit.

The valuation of McDonald's is compelling, with a high teens earnings multiple and a reasonable dividend yield above the S&P 500. They believe there's enough upside in the stock, which has some levers to pull for continued growth.