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Why McDonald's Stock Hasn't Soared During The Pandemic

Why McDonald's Stock Hasn't Soared During The Pandemic

On CNBC's "Fast Money Halftime Report," host Scott Wapner asked the investment committee why nobody owns McDonald's (NYSE: MCD) and why it hasn't done better during the pandemic.

"McDonald's is still only trading 24x next's year earnings," said Karen Firestone. Many of its competitors, such as Chipotle (NYSE: CMG) and Starbucks (NASDAQ: SBUX), are trading at very high multiples.

"I think it's attractive if you're in that space but the problem is McDonald's is considered an eat-in and takeout place, and eat-in has been a problem. It's not the kind of place that seems to have gotten traction on its business through the pandemic," said Firestone.

She also noted the fast-food giant doesn't have the website and digital platform that its competitors have. 

Joe Terranova said the company has yet to appeal to certain generations, unlike competitor Shake Shack (NYSE: SHAK).

"McDonald's has failed to define itself to a younger generation, which is exactly what Shake Shack has done," said Terranova.


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Posted-In: CNBC Fast Money Halftime Report Joe Terranova Karen Firestone Scott WapnerRestaurants Media General Best of Benzinga