BofA Securities analyst Sara Senatore maintains $McDonald's (MCD.US)$ with a hold rating.
According to TipRanks data, the analyst has a success rate of 57.5% and a total average return of 7.4% over the past year.
Furthermore, according to the comprehensive report, the opinions of $McDonald's (MCD.US)$'s main analysts recently are as follows:
The analyst notes that comparable sales for McDonald's softened at the onset of Q3 but later stabilized at subdued levels. It was mentioned that despite the vulnerability to the spending power of lower-income consumers, the quick service segment's emphasis on value has proved to be efficacious. Moreover, the general trend of easing inflation and pricing pressures was also highlighted.
As the restaurant industry approaches the release of its Q3 earnings reports, the focus of discussions has primarily been on aligning expectations and positions ahead of these announcements. The market's multiple expansion has been a contributing factor to the revised valuation expectations for McDonald's.
Expectations for McDonald's U.S. comparable sales are positive, surpassing the general consensus, supported by evidence suggesting a return to market share gains in the third quarter through a strategic shift towards value offerings and successful limited-time offerings. There is potential for further acceleration in the fourth quarter as comparisons become more favorable and the company continues to introduce new products. Although the overall market is challenging, McDonald's is perceived to be leading in the burger segment. Its unit growth is deemed to be underestimated, and there is optimism for earnings per share growth in the latter half of the year and into fiscal year 2025, with the current earnings multiple still considered reasonable.
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