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McDonald’s cut to Hold at Argus on weaker traffic, valuation

Argus downgraded McDonald’s (MCD) to Hold from Buy with no price target. The firm warns that consumers are pushing back against several years of price hikes as it expects traffic to remain weak. Argus further notes that the earnings multiple on the stock is 24.6-times expected 2025 EPS – above multiples of Darden Restaurants (DRI) and Restaurant Brands (QSR), though longer term, it is positive on the company given its geographically diverse locations and dividend hikes.

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