McDonald’s: A Surprising Defensive Stock in Tough Times

Despite mounting evidence of a consumer slowdown, big banks like Wells Fargo now tout McDonald’s as a defensive play in the face of tariff-driven uncertainty. As spending tightens, the global fast-food giant’s affordable menu offerings may lure diners trading down from pricier chains. Early 2025 has seen robust same-store sales, contrasting with faltering growth at rivals that rely on upscale items. Analysts also note that McDonald’s enjoys brand recognition and broad geographic reach, partially insulating it from any one region’s economic woes. Critics point out that no restaurant is fully recession-proof—if deep inflation or job losses worsen, even a burger run may strain household budgets.