UBS analyst Dennis Geiger has maintained their bullish stance on MCD stock, giving a Buy rating on October 16.
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Dennis Geiger has given his Buy rating due to a combination of factors that suggest McDonald’s is well-positioned for future growth despite current macroeconomic challenges. Geiger anticipates that while there may be some pressure on U.S. same-store sales and earnings in the third quarter, the company is likely to see an improvement in the fourth quarter and beyond, driven by strategic initiatives such as the relaunch of the Extra Value Meal, menu innovations, and enhanced marketing efforts. These initiatives are expected to bolster McDonald’s value perception and sales momentum, setting the stage for potential market share gains.
Internationally, Geiger notes that McDonald’s is poised for share gains in key markets despite ongoing industry pressures. The focus on value offerings and digital and loyalty program enhancements are seen as key drivers for growth in these regions. In particular, markets like Germany and Australia are expected to perform well, with strategic pricing and marketing efforts contributing to a positive outlook. Overall, Geiger’s analysis suggests that McDonald’s defensive characteristics and strategic initiatives will provide earnings stability and growth opportunities in a volatile market environment.
According to TipRanks, Geiger is a 3-star analyst with an average return of 2.6% and a 53.23% success rate. Geiger covers the Consumer Cyclical sector, focusing on stocks such as Domino’s Pizza, McDonald’s, and Chipotle.
In another report released on October 16, Wells Fargo also maintained a Buy rating on the stock with a $340.00 price target.