McDonald’s Profits May Strengthen Its Defensive Attractiveness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy MCD?
Source: Marketbeat
Stock Performance: McDonald's shares have increased by 2.7% in the past week, nearing a 52-week high, amidst a broader market decline in technology stocks.
Earnings Report Insights: The company is set to report its fourth-quarter and full-year earnings on February 11, with analysts closely watching consumer traffic trends, particularly from lower-income demographics.
Dividend Growth: McDonald's is expected to raise its dividend later this year, joining the elite group of companies that have consistently increased dividends for at least 50 consecutive years.
Market Outlook: Analysts maintain a positive long-term view on McDonald's stock, citing strong sales growth and a healthy business model, despite current economic pressures affecting consumer spending.
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Analyst Views on MCD
Wall Street analysts forecast MCD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MCD is 337.63 USD with a low forecast of 300.00 USD and a high forecast of 375.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
12 Buy
11 Hold
0 Sell
Moderate Buy
Current: 323.480
Low
300.00
Averages
337.63
High
375.00
Current: 323.480
Low
300.00
Averages
337.63
High
375.00
About MCD
McDonald's Corporation is a global foodservice retailer. Its segment includes U.S., International Operated Markets, and International Developmental Licensed Markets & Corporate. The U.S. segment is its largest market and is 95% franchised. The International Operated Markets segment is comprised of markets, or countries in which it operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, Poland, Spain, and the United Kingdom. This segment is 89% franchised. The International Developmental Licensed Markets & Corporate segment is comprised of developmental licensee and affiliate markets, including equity method investments in China and Japan. This segment is 99% franchised. Its menu features hamburgers and cheeseburgers, the Big Mac, the Quarter Pounder with Cheese, the Filet-O-Fish, and several chicken sandwiches, such as the McChicken and McCrispy as well as Chicken McNuggets, Fries, shakes, sundaes, cookies, soft drinks, coffee, and other beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Earnings Report Insights: The company is set to report its fourth-quarter and full-year earnings on February 11, with analysts closely watching consumer traffic trends, particularly from lower-income demographics.
Dividend Growth: McDonald's is expected to raise its dividend later this year, joining the elite group of companies that have consistently increased dividends for at least 50 consecutive years.
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- DuPont's Strong Performance: Cramer anticipates that DuPont's earnings report will highlight CEO Lori Koch's effective management, particularly after the spinoff of its electronics business, with the stock soaring 58% over the past six months, indicating the success of the company's restructuring.
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- Economic Data Release: The delayed January jobs report will be released on Wednesday, with economists forecasting the addition of 70,000 jobs in the U.S., providing the market with the latest dynamics on the labor market.
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Earnings Report Insights: The company is set to report its fourth-quarter and full-year earnings on February 11, with analysts closely watching consumer traffic trends, particularly from lower-income demographics.
Dividend Growth: McDonald's is expected to raise its dividend later this year, joining the elite group of companies that have consistently increased dividends for at least 50 consecutive years.
Market Outlook: Analysts maintain a positive long-term view on McDonald's stock, citing strong sales growth and a healthy business model, despite current economic pressures affecting consumer spending.
See More
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- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
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