Analyst Brian Harbour of Morgan Stanley maintained a Hold rating on McDonald’s (MCD – Research Report), with a price target of $324.00.
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Brian Harbour’s rating is based on a combination of factors that reflect both short-term optimism and longer-term uncertainties for McDonald’s. In the near term, the sentiment around McDonald’s is relatively positive, especially when compared to its peers, as the company is expected to outperform many competitors in the upcoming quarters. This is partly due to an improving same-store sales narrative and the potential for the company to beat earnings expectations, aided by a weaker USD. However, the stock might remain range-bound as there are limited better options within the quick-service restaurant sector.
Despite the near-term optimism, Harbour highlights some longer-term challenges that contribute to the Hold rating. There are mixed reviews on recent product launches, such as the chicken strips and upcoming snack wraps, which could affect sales momentum. Additionally, while some investors are hopeful about 2025 drivers, there is less conviction in the longer-term bull case due to concerns about pricing, value, and pressures on lower-income consumers. These factors, along with a mixed international outlook and health and wellness considerations, create uncertainties that temper the overall enthusiasm for McDonald’s stock.
Harbour covers the Consumer Cyclical sector, focusing on stocks such as McDonald’s, Dutch Bros Inc, and Wingstop. According to TipRanks, Harbour has an average return of 2.4% and a 56.43% success rate on recommended stocks.