🚨McDonald's is reaching interesting levels it hasn't seen in months‼️
Over the past year, the stock is down more than 17%.
Such levels are not often seen on this stock, and there are 2 reasons behind it:
1. A narrative has spread that a "global food crisis" awaits us next year. Two main reasons are said to be behind it.
1. The closure of Hormuz, which caused a fertilizer shortage.
2. The second factor is supposed to be "El Niño" climate change, which brings extremely dry weather.
If these 2 factors add up, it is clear that it can affect food production for several months ahead. That is one of the reasons why stocks like McDonald's have fallen. And not just McDonald's but also Pepsi, which is at levels from a year ago.
2. The second reason is the slowdown in the company's growth. Management admitted on their last earnings call that revenues are not developing as expected and they are pushing their growth targets from 2027 to 2028.
That is of course unflattering news for investors.
But I am wondering whether this stock should be punished like this. Despite that, its revenues are growing, margins are around 47% and the PE is currently at 21. And that is a level from which the stock has historically mostly bounced upward. For me, it is an opportunity to start building initial positions if this sector is not yet in your portfolio.
What do you think?
PS: This is not investment advice.
