LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LONDON WALLET
  • Home
  • Investing
  • Business Finance
  • Markets
  • Industries
  • Opinion
  • UK
  • Real Estate
  • Crypto
No Result
View All Result
LondonWallet
No Result
View All Result

Wells Fargo upgrades McDonald’s, says fast food giant is ‘firing on all cylinders’

Chaim Potok by Chaim Potok
September 7, 2023
in Investing
Wells Fargo upgrades McDonald’s, says fast food giant is ‘firing on all cylinders’
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


There are reasons to be bullish on McDonald’s in the second half of this year, Wells Fargo said. Analyst Zachary Fadem upgraded the fast-food chain to overweight from equal weight. His $310 target price for shares reflects an upside of 12.5% from where the stock closed Wednesday. “Despite well-telegraphed deceleration, we see upside to 2H,” he told clients. And even after beating comparables in the first and second quarter, “we believe MCD is just getting started.” Fadem said the company’s “innovation engine is firing on all cylinders,” while international markets are performing better than expected. He also said the company has no shortage of levels to pull to buoy business in the event of a broader slowdown among quick-service restaurants. McDonald’s shares have sold off more than the broader market since its second-quarter earnings report in late July. To be exact, the stock is down about 6%, while the S & P 500 has slid 2%. Following that underperformance, Fadem said there’s “an opportunity to own a best-in-class operator heading into a new unit acceleration cycle.” He also pointed to the fact that the stock’s price-to-earnings multiple has fallen about 11% since the company first announced plans to accelerate unit growth in January. Unit acceleration could come in above 4% in the 2024 fiscal year, Fadem said, which would help support McDonald’s premium valuation. And accelerated unit growth is just one way McDonald’s can growth its earnings per share in the 2024 fiscal year, Fadem said. He also pointed to comparable store sale momentum, margin pressure easing and easy international franchise comparable as other drivers. McDonald’s marketing also can’t be ignored, he said. The company has a meal highlighting menu items featured in movies; a World Cup campaign; and a new peanut butter crunch-flavored McFlurry to market in the third quarter. Those follow the the success of the meal based on the purple blob Grimace . Shares climbed 1.2% before the bell on Thursday. The stock has underperformed the broader market this year, up about 4.5% year to date. — CNBC’s Michael Bloom contributed to this report



Source link

You might also like

Thursday’s big stock stories: What’s likely to move the market in the next trading session

Morgan Stanley’s highest conviction picks into earnings

Student loan forgiveness paused under a popular repayment plan. Here’s what to know

Share30Tweet19
Previous Post

Fisker stock gains, as EV maker looks to boost production of Ocean SUV by 67%

Next Post

Orkin parent Rollins’ stock drops after 38.7 million-share public offering prices at an 8% discount

Chaim Potok

Chaim Potok

Recommended For You

Thursday’s big stock stories: What’s likely to move the market in the next trading session
Investing

Thursday’s big stock stories: What’s likely to move the market in the next trading session

July 24, 2025
Morgan Stanley’s highest conviction picks into earnings
Investing

Morgan Stanley’s highest conviction picks into earnings

July 23, 2025
Student loan forgiveness paused under a popular repayment plan. Here’s what to know
Investing

Student loan forgiveness paused under a popular repayment plan. Here’s what to know

July 23, 2025
This oil ETF is showing signs of a possible turnaround, according to the charts
Investing

This oil ETF is showing signs of a possible turnaround, according to the charts

July 23, 2025
Next Post
Orkin parent Rollins’ stock drops after 38.7 million-share public offering prices at an 8% discount

Orkin parent Rollins’ stock drops after 38.7 million-share public offering prices at an 8% discount

Related News

Three fatally knifed before attacker ‘stole victim’s van’ to drive at others

Three fatally knifed before attacker ‘stole victim’s van’ to drive at others

June 13, 2023
Solana network and DeFi activity suggest SOL price rally will continue

Solana network and DeFi activity suggest SOL price rally will continue

May 13, 2025
Top holiday scams to watch out for in 2024

Top holiday scams to watch out for in 2024

December 12, 2023

Browse by Category

  • Business Finance
  • Crypto
  • Industries
  • Investing
  • Markets
  • Opinion
  • Real Estate
  • UK

London Wallet

Read latest news about finance, business and investing

  • Contact
  • Privacy Policy
  • Terms & Conditions

© 2025 London Wallet - All Rights Reserved!

No Result
View All Result
  • Checkout
  • Contact
  • Home
  • Login/Register
  • My account
  • Privacy Policy
  • Terms and Conditions

© 2025 London Wallet - All Rights Reserved!

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?