McDonald’s Corporation (MCD) and Just Eat Takeaway.com announced a global strategic partnership focused on food delivery, on March 22. McDonald’s shares are currently trading at $237.15.
The Chicago-headquartered McDonald’s is a multinational restaurant chain. It operates some 38,000 outlets in about 120 countries. Meanwhile, Just Eat Takeaway is a Dutch global online food ordering and delivery provider, operating with 500,000 couriers.
The Partnership Goes Global
Just Eat Takeaway has been helping McDonald’s deliver meals to customers in local markets. The new agreement expands that partnership to a global scale. The arrangement is designed to support the growth of McDonald’s McDelivery service, which lets customers order food to be delivered to their homes from McDonald’s restaurants.
Just Eat Takeaway.com COO, Joerg Gerbig, said, “We are excited to announce this new partnership with McDonald’s, which represents a next step in growing a mutually beneficial food delivery business and opens the door for further growth in the markets in which the partnership is active.”
Launched five years ago, McDelivery has enabled McDonald’s to provide delivery at more than 33,000 restaurants in 100 countries.
In 2020, McDonald’s unveiled a new growth strategy dubbed Accelerating the Arches, which the chain says is about delivering growth while driving greater impact. Delivery is a major component of that strategy.
Collaborating on Innovations
While supporting McDonald’s delivery service, Just Eat Takeaway expects to increase its operational benefits. McDonald’s global deal comes after Just Eat Takeaway acquired its GrubHub and went on to report a 33% rise in 2021 revenue `€5.3 billion. The delivery provider has said it now wants to focus more on profitability going forward.
McDonald’s and Just Eat Takeaway have also agreed to collaborate on innovations that benefit customers and couriers.
Wall Street’s Take
Consensus among analysts is a Strong Buy based on 22 Buys and three Holds. The average McDonald’s price target stands at $286.50 and implies upside potential of 21.23% to current levels. Shares have gained 8.5% over the past year.
Hedge Funds
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in MCD is currently Very Positive, as 19 hedge funds increased their cumulative holdings of the stock by 216,400 shares in the last quarter.
Download the TipRanks mobile app now.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
Tesla Inaugurates Giga Berlin & Delivers 30 German-Made Cars; Stock Up 8%
Why is Tilray Stock Trending Higher?
Meta’s Dutch Data Center Project Irks Lawmakers – Report
