On Oct 23, major Wall Street analysts update their ratings for $McDonald's (MCD.US)$, with price targets ranging from $321 to $350.
Morgan Stanley analyst Brian Harbour maintains with a buy rating, and maintains the target price at $340.
BofA Securities analyst Sara Senatore maintains with a hold rating, and sets the target price at $321.
Barclays analyst Jeff Bernstein maintains with a buy rating, and maintains the target price at $325.
UBS analyst Dennis Geiger maintains with a buy rating, and maintains the target price at $345.
Wells Fargo analyst Zachary Fadem maintains with a buy rating, and maintains the target price at $350.
Furthermore, according to the comprehensive report, the opinions of $McDonald's (MCD.US)$'s main analysts recently are as follows:
The firm is modifying its valuation benchmarks for the restaurant industry, taking into account revisions in estimates and an escalation in market multiples, as it anticipates third-quarter disclosures from the sector.
The firm suggests that McDonald's preliminary third-quarter comparable sales began softening before finding stability at subdued levels. It was noted that, despite susceptibility to shifts in lower-income consumer behavior, the effectiveness of quick service sector's emphasis on value has been noteworthy. Furthermore, there is an indication that inflationary pressures and pricing are showing signs of moderation.
The recent reports of an E. coli outbreak associated with McDonald's restaurants across several U.S. states are raising concerns about potential impacts on consumer perceptions and U.S. comparable sales, a crucial factor for investor confidence. Additionally, there is growing risk for McDonald's in international markets due to the challenging global economic environment. Given these uncertainties affecting all segments, forecasting short-term growth for the stock is becoming challenging.
Expectations for McDonald's U.S. comparable sales are set higher than the consensus, bolstered by evidence suggesting a regain in market share during Q3 through a strategic shift towards value and effective limited-time offers. There's potential for further momentum in Q4 as comparative periods soften and continued product innovation. Despite a subdued overall environment, McDonald's is perceived to be leading in the burger segment, with its unit expansion being underestimated. There is optimism for earnings growth in the latter half of the year and looking into FY25, with valuation multiples remaining attractive.
Here are the latest investment ratings and price targets for $McDonald's (MCD.US)$ from 7 analysts:
Note:
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