Benzinga | Dec 14, 2020 01:28PM EST

Why McDonald's Stock Hasn't Soared During The Pandemic

On CNBC's "Fast Money Halftime Report," host Scott Wapner asked the investment committee why nobody owns McDonald's (NYSE:MCD) and why it hasn't done better during the pandemic.

"McDonald's is still only trading 24x next's year earnings," said Karen Firestone. Many of its competitors, such as Chipotle (NYSE:CMG) and Starbucks (NASDAQ:SBUX), are trading at very high multiples.

"I think it's attractive if you're in that space but the problem is McDonald's is considered an eat-in and takeout place, and eat-in has been a problem. It's not the kind of place that seems to have gotten traction on its business through the pandemic," said Firestone.

She also noted the fast-food giant doesn't have the website and digital platform that its competitors have.

Joe Terranova said the company has yet to appeal to certain generations, unlike competitor Shake Shack (NYSE:SHAK).

"McDonald's has failed to define itself to a younger generation, which is exactly what Shake Shack has done," said Terranova.