Shares of fast-food restaurant McDonald’s (NYSE:MCD) fell in today’s trading after getting some flak from customers about its $5 Meal Deal. Indeed, the promotion will only run for a month, starting June 25, and customers have taken to social media to criticize its duration. The deal includes a McChicken or McDouble, four-piece chicken nuggets, fries, and a drink.
This has Bank of America suggesting that the $5 deal could be a starting point for more permanent value options. The investment firm said that McDonald’s lacks a national value menu and that menu prices need to come down. In fact, since 2020, McDonald’s prices have jumped 20%. In addition, BofA’s data shows that McDonald’s is still seeing slow sales in Q2, likely because of price hikes.
The fast-food chain is hoping that the promotion can help turn things around. However, not everyone is convinced it will. More specifically, franchise owners are not fully on board with the idea. As a result, McDonald’s is still trying to convince them that this deal will bring in more customers and boost profits.
Is McDonald’s Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on MCD stock based on 19 Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 9% decline in its share price over the past year, the average MCD price target of $304.21 per share implies 17% upside potential.
