McDonald’s is doubling down on its safety protocols across its 14,000 locations in the U.S. in an effort to prevent “COVID fatigue,” as cases spike throughout the country.
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In a November 13 memo written by chief field officer, Charlie Strong, which was obtained by the New York Post, McDonald’s (MCD) will be conducting new safety inspections across its restaurants. The purpose of the safety protocol reviews is to make sure team members are “aware of the opportunities and what is needed to improve,” according to the memo.
Procedures for contactless payment systems and social distancing will be the focus of the inspections.
“It is apparent we are entering what many predicted would be the most difficult period of the pandemic…McDonald’s may do safeguards follow-up visits where deemed necessary,” Strong wrote.
Strong went on to point out that the company’s actions “actions are being watched very closely by consumers, crew and other external stakeholders,” and that although “allegations have been made by critics with an agenda,” McDonald’s is “committed to addressing any concerns that impact the safety of our people and customers.”
The fast food chain expects the inspections to wrap up by the end of the year. (See McDonald’s stock analysis on TipRanks)
Recently, Baird analyst David Tarantino reiterated a Buy rating and $238 price target (12% upside potential), noting that the company’s management team has new strategic priorities, which he thinks could drive meaningful market share gains over the next few years. Additionally, he argues its recent investments could extend its competitive advantages.
The rest of the Street is optimistic about McDonald’s, with its Strong Buy analyst consensus breaking down into 22 Buys and 5 Holds. At $238, the average price target brings the upside potential to 12%. Shares are up 8% so far in 2020.
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