On May 12, 2023, Bloomberg reported that McDonald’s Corporation (NYSE:MCD) received a “Moderate Buy” consensus recommendation from the thirty-three brokerages currently covering the stock. Out of these brokerages, twenty have assigned a buy recommendation to the company while four research analysts have rated it with a hold recommendation.
The fast-food giant has become a popular choice among institutional investors and hedge funds in recent times as more and more are adding or reducing their stakes in the company’s shares. Osterweis Capital Management Inc., for instance, bought additional shares valued at $25,000 during Q4 2022, and Grey Fox Wealth Advisors LLC lifted its holdings by 102% during Q1 2023.
McDonald’s Corporation operates and franchises restaurants across three main segments – U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses primarily on operations within America while the International Operated Markets segment includes the franchising of restaurants in different countries globally such as Australia, Canada, France, Germany, Italy Netherlands Russia Spain and UK.
Among brokers who have issued ratings on MCD in the past year, their average 12-month price target stands at $306.83 as of writing. It should be noted that this figure is subject to fluctuations based on changes in market trends – which occur frequently within highly dynamic industries like fast-food.
In conclusion, despite any uncertain conditions affecting global markets or fast-food consumption patterns that may arise in the future; current developments present an optimistic outlook for McDonald’s shareholders seeking new growth opportunities in coming months- while always remembering that investment carries risk due to unpredictable variations over time.
McDonald’s Corp sees Strong Performance and Positive Analyst Reports
McDonald’s Corp: Strong Performance and Positive Analyst Reports
In recent weeks, McDonald’s Corp (NYSE:MCD) has been the subject of several analyst reports. These reports highlight an optimistic outlook for the fast-food giant, with price objectives rising across the board.
Barclays raised their price objective from $310 to $330, giving McDonald’s an “overweight” rating on April 26th. Guggenheim followed suit, upping their price objective from $305 to $325 with a “buy” rating on the same day. StockNews.com assumed coverage and gave McDonald’s a “buy” rating on March 16th.
Credit Suisse Group also reported positively on MCD, increasing their price target from $300 to $320 and providing the stock with an “outperform” rating on April 26th.
KeyCorp is one of the few analysts that has reduced its price objective of McDonald’s in recent months, reducing it from $295 to $290 and giving an “overweight” rating through a research note published on February 1st.
Despite this hiccup in May, we see that insiders are continuously backing up the company as they sell stocks amounting to millions worth every quarter. According to insider transactions tracked by Marketbeat.com, insiders have sold a total of 17,393 shares over the last 90 days with a total value of nearly five million dollars.
McDonald’s Corp engaged in operating and franchising restaurants is taking advantage of their international operation franchise markets in Australia, Canada, France, Germany, Italy Netherlands Russia Spain & UK while focusing primarily on US operations. The multinational chain has shown steady growth performance as evident during Q1 earning data such that amid COVID-19 pandemic experienced net revenue growth driven by higher systemwide sales reflecting strong comparable sales performance throughout delivery as well as carry-outs channels globally.
On Apr 25th Q1 earnings release showed revenue at around $5.90bn and earnings per share of $2.63, surpassing analysts’ estimates of $5.58bn and $2.31 respectively.
McDonald’s stock opened for trading at $294.79 on May 12th, which indicates a 3.1% increase in the past thirty days following the reports and an impressive fifty-day moving average price of $281.88 with a two-hundred day moving average of $273.48.
With these recent data points, McDonald’s has shown repeated strong performance, positive analyst coverage and regular insider transactions showcasing much interest in backing up the company forward-looking future goals hence making it appear very attractive towards potential investors looking for long term value investments in their portfolios.
