Fast food is a crowded industry, but McDonald's (NYSE: MCD) consistently outpaces its competition by leveraging its iconic brand and expansive global presence. Today, it is the largest publicly traded fast-food chain by market capitalization, worth roughly $210 billion, significantly surpassing its nearest competitor, Chipotle Mexican Grill, which stands at $61 billion.

However, just because a company has enjoyed enduring success doesn't necessarily make it a good investment today. So, let's dive into McDonald's recent performance, management's guidance, and the company's current valuation to see whether the stock is a buy, sell, or hold now.

McDonald's uses primarily a franchise business model with 95% of its more than 41,000 locations owned and operated by independent business owners. Therefore, McDonald's revenue mainly depends on one-time new franchise fees as well as recurring rent and royalties on a percentage of sales from its franchised restaurants.

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Source Fool.com