McDonald’s (MCD): Is Wall Street Overlooking Its High-Margin Franchise Model?

Share price for McDonald's Corp. (NYSE:MCD) reflects on rising skepticism around the company's growth trajectory and the weight of its leverage. Other fundamentals appear healthy, such as its elite profitability margins and attractive cash flows. Valuation remains compressed as investors try to weigh if the company's 3.70% topline growth is a temporary soft patch or the new normal. Any improvement in sales momentum could make the ongoing multiples look very attractive in hindsight. McDonald's is exploring a new high-margin revenue opportunity through drive-thru advertising.The question is how much McDonald's can add advertising revenue with minimal incremental costs.