Nomura Value Fund on McDonald's Corporation
Thesis
The fund initiated McDonald's because it sees a combination of market leadership, strong operating execution, a solid balance sheet and room for growth. Macroeconomic concerns had pressured investor sentiment and created what the team viewed as a relative-value opportunity. The thesis is that the underlying franchise quality is stronger than the valuation implied by those near-term concerns.
“In our view, investors’ concerns about macroeconomic challenges created an interesting relative value opportunity.”
Key risks
- Macroeconomic challenges affecting consumer demand