McDonald’s Corporation (MCD) reported strong Q3 results with a +3.6% rise in sales globally. Operating cash flow increased to $3.428 billion, representing 48% of Q3 revenue. Despite higher capex spending, the high free cash flow (FCF) margin of 34.17% suggests potential undervaluation. Shorting OTM puts could be a strategic play.

MCD stock is currently priced at $300.74, showing an upward trend post-Q3 earnings release. Analysts project a potential stock value of $370 per share over the next year, indicating a 23% increase. Market indicators suggest that MCD could be undervalued by 10-23%, making it an attractive investment opportunity.

Read more at Barchart: Is McDonald’s a Buy? Its Strong FCF Margins Imply MCD Could be 23% Undervalued