5 Stocks Most Vulnerable to Recession

3. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 58

McDonald’s Corporation (NYSE:MCD) is a Chicago, Illinois-based fast food giant.

On July 7, Brian Mullan at Deutsche Bank reduced the price target on McDonald’s Corporation (NYSE:MCD) from $265 to $263 ahead of the Q2 2022 results. Presently, the P/E multiple of McDonald’s Corporation (NYSE:MCD) shows a 45% premium when compared to the 20-year median one-year forward P/E multiple. Goldman Sachs sees a gap of over 550 bps between the 2023 forecasts for McDonald’s Corporation (NYSE:MCD) and the recession margin growth recorded historically.

Furthermore, to overcome allegations of evading taxes in France by transferring revenue to Luxemburg and Switzerland illegally, McDonald’s Corporation (NYSE:MCD) has agreed to pay $1.3 billion to settle these claims. McDonald’s Corporation (NYSE:MCD) would be paying a sum that is two-and-half times higher than the taxes evaded by the corporation.

McDonald’s Corporation (NYSE:MCD) was held by 58 hedge funds as of Q1 2022.