McDonald’s (MCD – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Alison Fok from DBS reiterated a Buy rating on the stock and has a $327.00 price target.
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Alison Fok’s rating is based on a combination of strategic initiatives and financial performance indicators that suggest a positive outlook for McDonald’s. The company has reported consolidated revenues of USD6.9 billion for the third quarter of 2024, marking a 3% year-over-year increase. Despite a slight decline in global comparable sales, McDonald’s has seen an upward trend in the U.S., indicating potential for growth in key markets. Adjusted earnings per share also showed improvement, rising to USD3.23, which supports an optimistic forecast.
Furthermore, McDonald’s is expanding its menu, especially in the chicken category, and is focusing on enhancing its digital and delivery channels. The company plans to significantly increase its loyalty program user base and aims to grow its store count to 50,000 worldwide by 2027. With steady EBITDA growth over the past decade and new strategies centered on value promotions, the company is well-positioned for future growth. These factors, coupled with a forward price-to-earnings ratio that is favorable compared to historical averages, underpin Alison Fok’s Buy rating for McDonald’s.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $335.00 price target.