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McDonald’s a Value Stock or Loser? Pros Weigh In

Friday, 19 Oct 2012 | 12:58 PM ET

A declining stock price for McDonald's presents new challenges for the fast-food chain, but it still offers potential on a dip, Drakon Capital's Guy Adami said Friday on CNBC.

"I still think it's a great story. The valuation got stretched," he said on "Fast Money." "Every dip in the stock for the last year, year and a half, was a buying opportunity."

McDonald's a Value Stock or Loser? Pros
A declining stock price for McDonald's presents new challenges, and the "Fast Money" pros offer perspectives.

As a trade, Adami had a price in mind: "In my world, 85, 85½, I think it will present one again."

(Read More: Is McDonald's Stock Still on the Value Menu?)

OptionMonster.com's Pete Najarian saw three challenges for the company: Slowing sales in China, "the U.S. is dodgy right now, and of course, Europe."

Stuart Frankel's Steve Grasso saw margins being compressed.

(Read More: Gartman: Food Commodities Could Keep Easing)

"If you look at this, it is the dollar menu," he said. "They're focusing too much on that dollar menu, and it's killing them."

Written by Bruno J. Navarro, CNBC.com Producer.

Trader disclosure: On Oct. 19, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long call spreads in GS; Jon Najarian is long call spreads in FB; Jon Najarian is long call spreads in RHI; Jon Najarian is long call spreads in MAN; Jon Najarian is long call spreads in DLTR; Jon Najarian is long GLUU; Jon Najarian is long STSI; Jon Najarian is long CME; Jon Najarian is long CBOE; Pete Najarian is long AAPL; Pete Najarian is long JPM CALLS; Pete Najarian is long WFC CALLS; Pete Najarian is long INTC CALLS; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Steve Grasso is long GOOG; Steve Grasso is long ACI; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long BTU; Steve Grasso is long CLF; Steve Grasso is long F; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long P; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long WYNN.

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