McDonald’s (MCD – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Alison Fok from DBS reiterated a Buy rating on the stock and has a $339.00 price target.
Alison Fok has given her Buy rating due to a combination of factors that highlight McDonald’s strategic growth and resilience. Despite a slight dip in full-year earnings and comparable sales, McDonald’s has shown a modest rise in global comparable sales, indicating a strong recovery potential. The company’s future outlook is promising, with plans to expand its chicken offerings, enhance digital orders, and grow its loyalty program, which are expected to drive sales and customer engagement.
Moreover, McDonald’s has maintained steady EBITDA growth over the past decade, demonstrating its ability to improve sales and margins even in challenging macroeconomic conditions. The company’s strategic focus on delivery, drive-thru, and digitalization, coupled with easing inflationary pressures, positions it well for continued growth. With a target price of USD 339 based on a 29x forward PE, Alison Fok remains optimistic about McDonald’s medium-term prospects, reinforcing her Buy recommendation.
Fok covers the Consumer Cyclical sector, focusing on stocks such as Nike, McDonald’s, and ANTA Sports Products. According to TipRanks, Fok has an average return of 4.1% and a 58.93% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $347.00 price target.