In a report released today, Brian Bittner from Oppenheimer reiterated a Hold rating on McDonald’s Corp (NYSE: MCD). The company’s shares closed yesterday at $163.67.
Bittner wrote:
“Our analysis suggests upside catalysts for MCD shares are still lacking despite the stock’s 5% decline year-to-date. We remain sidelined with our Perform rating based on: 1) Street’s SSS estimates through ’19 tilt aggressively—particularly as share gains have moderated and sales lift “math” from remodels is underwhelming, 2) we struggle to identify earnings upside drivers against consensus, especially in International (~60% of profits) where FX headwinds exist and macro isn’t strengthening, 3) we don’t view MCD’s valuation as inexpensive, particularly given its lack of unit growth and below-average EPS algorithm (high-single-digit targeted rate). 3Q18 earnings on 10/23.”
According to TipRanks.com, Bittner is a 5-star analyst with an average return of 10.9% and a 68.3% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Cheesecake Factory.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for McDonald’s Corp with a $183.25 average price target.
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McDonald’s Corp’s market cap is currently $127B and has a P/E ratio of 24.03. The company has a Price to Book ratio of -21.70.
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