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
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.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Retirement Health Care Costs Are On the Rise: What You Need to Know
A 65-year-old retiree will face significantly higher lifetime health care costs than they would have a year ago, even with Medicare. Here are the surprising totals.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Three Ways to Find Deals in Your Investments This Year
Looking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
How to Invest for a Fall Interest Rate Cut by the Fed
A lot can happen between now and then, but the probability the Fed cuts interest rates before the end of the year is better than 85%.
-
You Don't Have to Be Wealthy to Need a Wealth Manager
Navigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.
-
Despite Tariffs, These Investment Experts Are Bullish on European Equities
European equities were one of the better-performing investments during the first half of 2025. They could be a good long-term prospect for U.S. investors needing to diversify, according to these investment managers.
-
Stocks Are Up and Down on Fed Day: Stock Market Today
In another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
-
What Federal Interest Rates Mean for Your Grocery Bill
The relationship between grocery prices and the Federal Reserve has plenty of back-and-forth. Understand how they interplay.
-
5 Undervalued Stocks to Buy Now
There are plenty of high-quality undervalued stocks to buy right now, you just need to know where to look. Here, we highlight five of our top picks.