Why McDonald's Is Still a Buy After Rolling Back DEI Initiatives
McDonald's stock is moving higher Tuesday after the fast food giant said it is scrapping certain DEI goals. Here's what you need to know.


McDonald's (MCD) is slightly higher in Tuesday's session after the world's largest foodservice retailer became the latest company to say it is ending certain diversity, equity and inclusion (DEI) goals.
The initiatives McDonald's is ending include representation goals in leadership positions and a pledge that encouraged suppliers to implement DEI strategies and increase minority representation, the company said in a press release.
To come to this decision, McDonald's said it reviewed its inclusion efforts, consulted shareholders, evaluated legal shifts such as the Supreme Court ruling in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College and compared its approach to other companies.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Walmart (WMT), Deere (DE) and Ford Motor (F) are just a few firms that have recently done away with DEI initiatives.
"We will continue to drive business results through all three legs of the McDonald's stool, specifically with our people practices, by fueling economic impact and innovation through our robust supply chain, and by building a franchisee pipeline that thrives in the communities we serve and fuels our growth," the company said in a statement.
Is McDonald's stock a buy, sell or hold?
McDonald's boasts a six-month total return (price change plus dividends) of nearly 18% and analysts think Kiplinger Dividend 15 stock has more room to run.
According to S&P Global Market Intelligence, the average analyst target price for the Dow Jones stock is $322.20, representing implied upside of nearly 10% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Jefferies is one of the more bullish outfits on the blue chip stock with a Buy rating and $345 price target.
"(Our) top pick is MCD, where we see accelerating share wins in the U.S. through 2025 and beyond," wrote Jefferies analyst Andy Barish in a December 16 note. He adds that this will be "driven by low price points and bundle value offerings" as well as "momentum in digital, loyalty, delivery, core menu focus along with limited time offers, and a strong brand and marketing platform.
Over the long term, Barish sees opportunities in margin expansion, free cash flow conversion and accelerating unit growth, all of which should drive MCD stock higher.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets look forward to what comes with the reordering of 80-year-old global trade relationships.
By David Dittman Published
-
Stagflation: What It Is and Why Retirees Should Care
Stagflation — the economic bogeyman of the 1970's — may return to the US. Here's what it could mean to your retirement.
By Donna Fuscaldo Published
-
Stock Market Today: It's the Old Up-Down Again on Liberation Day
Markets look forward to what comes with the reordering of 80-year-old global trade relationships.
By David Dittman Published
-
Can a New Manager Cure Vanguard Health Care Fund?
Vanguard Health Care Fund has assets of $40.5 billion but has been ailing in recent years. With a new manager in charge, what's the prognosis?
By Nellie S. Huang Published
-
What You Don't Know About Annuities Can Hurt You
Lack of awareness leads many to overlook these potent financial tools, and with the possibility of running out of money in retirement, that could really hurt.
By Ken Nuss Published
-
Three Keys to Logical Investing When Markets Are Volatile
Focusing on these market fundamentals can help investors stay grounded rather than being swayed by emotion or market hysteria.
By Dennis D. Coughlin, CFP, AIF Published
-
Yes, the Markets Are Spooked, But You Don't Have to Be
It's human nature for investors to freak out in a downturn. But with a little discipline, you can overcome the urge to sell and stay focused on long-term goals.
By Jimmy Lee, IAR Published
-
Remembering Bogle: A New Standard for Municipal Investing
Improvements in technology, data, systematic trading and risk analytics have led to more successful municipal indexing.
By Paul Malloy Published
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets are getting into the freewheeling rhythm of a second Trump administration.
By David Dittman Published
-
How to Invest in Sports
If it's springtime, Forbes is out with its annual list of baseball franchise values. The billions involved might make you wonder how to invest in sports.
By David Dittman Published