Should you buy McDonald’s stock after its Q3 earnings?

October 30, 2023 03:55 PM PDT | By Invezz
Follow us on Google News:

McDonald’s Corp (NYSE: MCD) ended close to 2.0% up on Monday after reporting solid results for its third financial quarter.

McDonald’s stock has upside to $315

Still, David Palmer – an Evercore ISI analyst is convinced that the food stock has a lot more upside to unravel in the coming months.

He maintained his “buy” rating on McDonald’s stock today with a $315 price target that suggests about an over 20% upside from here. On CNBC’s “Squawk on the Street”, Palmer said this morning:

The competitive position of this company is extremely strong right now. They’ll continue to gain share both in the U.S. and important markets like Europe.

MCD currently pays a dividend yield of 2.57% which makes up for another good reason to have it in your portfolio.

McDonald’s is an inflation-protected company

On Monday, McDonald’s also slightly raised its guidance for adjusted operating margin to 47%. You can read the company’s full earnings release here. Watch here: https://www.youtube.com/embed/N9BpXo9JERI?feature=oembed

The Evercore ISI analyst is bullish also because he sees the multinational as an “inflation-protected staple company”. Note that the New York listed firm also announced plans of raising prices in California next year.

David Palmer agreed that weight-loss drugs could mean a 0.5% hit to traffic but recommended owning McDonald’s stock for the “multi-year trends for U.S. and developing markets” that remained strong in the third quarter.

For these reasons, he told clients in a research note on Monday that MCD was worthy of a premium price to growth ratio.

The post Should you buy McDonald's stock after its Q3 earnings? appeared first on Invezz


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.



Top Listed Companies