McDonald's Corporation

“McDonald's is among the highest-quality businesses in global equity markets — a near-fully franchised, asset-light royalty machine with a durable multi-layered moat, 40% ROIC, and five decades of compounding. However, at $278.61 (27.5x FCF, 19.6x forward earnings), the starting valuation caps 10-year returns to roughly 2–2.2x total, with $39B in net debt providing limited buffer against a prolonged traffic downturn. The business deserves a place in any long-term portfolio, but the price does not yet offer sufficient margin of safety — a pullback to the $240–250 range would unlock a genuine BUY.”