MCD

Publicly traded companies mentioned herein: McDonald’s Corporation (MCD) and Burger King (BKW).
Highlights

The presenter concedes that shares of McDonald’s look somewhat expensive at 19 times 2015 earnings, but he believes they likely have some cushion given that peers generally trade in the mid 20s multiple range. Investors worry about the secular headwinds from fast casual and healthier eating habits more generally, but the presenter believes those concerns are overblown. He noted that fast casual has been gaining momentum for more than a decade now, yet its overall impact on the industry continues to be relatively minor. Further, MCD’s food is no less healthy than many of its fast food peers that are doing just fine currently.