We just covered the 14 Best Low Risk High Growth Stocks to Buy Right Now and McDonald’s Corporation (NYSE:MCD) ranks 14th on this list.
McDonald’s Corporation (NYSE:MCD) is a 70-year-old brand. It has recently transformed into a data-driven real estate and AI powerhouse, shifting its growth trajectory. The smart money has been pouring into the company because unlike most fast-food chains, McDonald’s is primarily a real estate company. It owns the land under 85% of its restaurants. It leases this land back to franchisees, ensuring a stable, high-margin rent stream that is largely independent of whether a specific store has a bad month in sales. In 2025, the company generated $7.2 billion in free cash flow. This massive liquidity allows it to weather economic downturns, as consumers trade down to McDonald’s value meals when luxury dining becomes too expensive.
READ MORE: 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.
McDonald’s Corporation (NYSE:MCD) is also becoming a tech-enabled logistics firm. Data shows that by March, the MyMcDonald’s Rewards program had scaled to 210 million active users. This allows for hyper-personalized marketing that has increased visit frequency by 12% in key demographics. Earlier this month, McDonald’s completed the full rollout of generative AI drive-thrus across 8,000 US locations, which has reduced average wait times by 15 seconds per car, a massive efficiency gain in a high-volume business. The company is currently in the first phase of its most ambitious expansion in history. It is on track to open 2,600 new restaurants in 2026 alone, part of a broader goal to hit 50,000 locations by 2027.
While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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