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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free 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.
-
Stock Market Winners and Losers of the 'Big, Beautiful' Bill
Defense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have Millions
Private market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It Helps
Saving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
With Buffett Retiring, Should You Invest in a Berkshire Copycat?
Warren Buffett will step down at the end of this year. Should you explore one of a handful of Berkshire Hathaway clones or copycat funds?
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard About
Timing is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional Strain
Early conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market Today
The lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term Plan
The new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.