Motley Fool favors McDonald’s over Nike as an October pick: as of Sept. 24, the Dow was up 7% this year, while Nike was down 44% and McDonald’s 22%. It cites McDonald’s turnaround potential and value; Nike’s Win Now strategy has yet to deliver significant results.
McDonald’s announced plans to invest $8.5 billion in its stores over 10 years to refresh restaurants, improve efficiency and gain market share in areas including chicken and beverages. It also said U.S. comparable sales were expected to be slightly negative in Q3; shares fell 5% after the update.
Q2 U.S. same-store sales grew 8.5% at Burger King, versus 0.3% at McDonald’s. The article says McDonald’s remained profitable and traded at a price-to-earnings ratio of 19, its lowest since a brief pandemic-era dip. Nike’s revenue growth was flat amid tariffs, China-market challenges and wider sector weakness. Author Jeremy Bowman disclosed positions in Nike and Lululemon; Motley Fool disclosed positions in Deckers, IBM, Nike and On Holding, plus recommendations on Lululemon and McDonald’s options.
