If you're hungry for a cheap stock to put in your portfolio, you're in luck. McDonald's (NYSE: MCD) shares have sat out of the market rally in the past year, barely rising since March 2023 compared to the 31% spike in the S 500. That performance is a bit surprising given that the fast-food titan was setting records around sales and earnings heading into early 2024.

There are some clouds on the horizon, to be sure. McDonald's noticed weaker spending and sluggish customer traffic in the core U.S. market over the last few weeks, and competition is heating up for those more cost-conscious shoppers. Rivals like are targeting McDonald's industry lead in the drive-thru channel, and there are more pricing pressures now that inflation has slowed down.

Don't let these worries keep you away from the stock. McDonald's has all the ingredients necessary to generate solid returns from today's discounted share price. Let's look at some of the key reasons to love the stock right now.

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Source Fool.com