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McDonald’s Gets Downgraded by Oppenheimer
In a surprising turn of events, McDonald's (NYSE:MCD) has experienced a downgrade to a Perform rating, formerly Outperform, by Oppenheimer. The investment bank has also pulled out its previous 12-month price forecast on the fast-food giant's shares.
The Recent History of McDonald's Stock
Back in 2023, McDonald's had been singled out as a top pick by Oppenheimer. With this recommendation, the share price had soared to sit just shy of 7% less than their previously stated target of $315. Despite McDonald's witnessing substantial double-digit adjustments to its earnings per share (EPS) in 2023, Oppenheimer analysts have not spotted any clear indicators that may further shape or alter the consensus model.
The Deep-Dive into McDonald's Forecast
Oppenheimer's analysts provided their insights in the research note. “After conducting an intensive analysis of 2024, it appears difficult to pinpoint another cycle of catalysts that may impact the projected earnings consensus or alter McDonald's valuation multiple,” they explained.
According to their predictions, McDonald’s same-store sales might meet anticipations for this year. Analysts from Oppenheimer speculate this consistency might be because of the vanishing advantages in pricing and the difficulties in carving out a larger market share amongst price-sensitive consumers, resulting in a relatively unvarying performance.
Falling in line with this news, it was observed that McDonald's shares dropped by 0.87% in the early Friday morning trading session.
