Sluggish Bottom-Line Growth Knocks the Edge off the Value Case for McDonald's

McDonald's has for many years distinguished itself as a marquee fast-food stock whose returns put to shame those of its competitors. This time around, the giant fast-food chain has earned itself a new and unflattering reputation as the biggest laggard among its peers. Even relatively new upstarts such as Yum! Brands  now command more respect than this behemoth of the space. 

The low expectations for growth for McDonald's has resulted in the shares being among the cheapest in the sector. The stock's low forward P/E ratio of 17.55 is a true testimony to this.


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