Shares of McDonald’s Corp. (NYSE: MCD) fell in pre-market trading on Tuesday even as the fast food chain reported Q4 adjusted earnings of $2.59 per share, up 16% year-over-year which beat analysts’ consensus estimate of $2.45 per share.
In Q4, MCD’s comparable sales increased 12% globally with growth in “double-digit” across all its segments. McDonald’s generated revenues of $5.93 billion in Q4, a decline of 1% year-over-year but still beat analysts’ expectations by $180 million.
McDonald’s President and CEO, Chris Kempczinski commented, “While we expect short-term inflationary pressures to continue in 2023, we remain highly confident in Accelerating the Arches, which now includes a greater emphasis on new restaurant openings.”
Overall, Wall Street has a consensus price target of $293.77 on MCD stock, implying 8.5% upside potential, as indicated by the graphic above. Wall Street analysts rate the stock a Moderate Buy based on nine Buys and four Holds.