Citi analyst Jon Tower has maintained their bullish stance on MCD stock, giving a Buy rating today.
Jon Tower has given his Buy rating due to a combination of factors that suggest McDonald’s is poised for growth. The company has shown signs of improvement in sales and market share, particularly after a slow first quarter. This is attributed to the introduction of new products and a focus on value messaging, which aims to attract customers who have turned to competitors or home-cooked meals.
Additionally, McDonald’s is planning to enhance its beverage offerings, which could drive customer frequency and appeal to younger demographics. Despite some sales softness among low and middle-income consumers, the company is maintaining stability with higher-income groups. Furthermore, McDonald’s is addressing challenges in specific international markets, such as the UK, by leveraging successful strategies from other regions like France. These initiatives, along with favorable foreign exchange impacts and improved franchise margins, support the positive outlook for McDonald’s stock.
In another report released today, DBS also reiterated a Buy rating on the stock with a $339.00 price target.
MCD’s price has also changed slightly for the past six months – from $295.210 to $313.640, which is a 6.24% increase.