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Did McDonald's Q4 Change Wall Street's Mind About The Stock?

Wayne Duggan

Shares of McDonald’s Corporation (NYSE: MCD) are up 4.4 percent in the past five trading sessions, and the company reported a big Q4 earnings beat this week. With the stock sitting near its all-time high, should shareholders take the opportunity to pocket their gains, or is there more upside remaining? Here’s what Wall Street has to say.

Raymond James

Analyst Brian Vaccaro believes “a recovery in the U.S. is largely discounted in the stock’s premium valuation.” The firm has a Market Perform rating on the stock.

Deutsche Bank

Analyst Karen Short believes that McDonald’s stock “deserves to trade at a premium multiple to other highly franchised QSR and consumer staples companies.” The firm has a Buy rating and $135 price target.

Morgan Stanley

Analyst John Glass called all-day breakfast a “key driver of 3Q’s results.” The firm has an Equal-Weight rating and $118 price target.

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Credit Suisse

Analyst Jason West says the firm’s analysts “are still believers in our bull case model of ~$6.50 in 2017 EPS, which could lead to an ~$140 stock price.” The firm maintains its Outperform rating but upped its price target from $128 to $130.

Barclays

Analyst Jeffrey Bernstein notes that “fundamental expectations were high into 4Q15 results, and MCD exceeded from top to bottom.” The firm maintains an Overweight rating but raised its price target from $125 to $136.

Jefferies

Analyst Andy Barish admits that “although MCD is still in turnaround mode, the momentum regained in [the] US is hard to ignore.” The firm maintains a Hold rating but raised its price target from $110 to $115.

Cowen & Co

Analyst Andrew Charles is “pleased with MCD sales in 4Q that show continued global traction, in particular in the U.S.” The firm maintains a Market Perform rating but raised its price target from $112 to $116.

Baird

Analyst David Tarantino calls the Q4 report “encouraging, with strong comps momentum across segments indicating that turnaround initiatives have gained meaningful traction.” The firm maintains a Neutral rating but raised its price target from $115 to $122.

Disclosure: the author holds no position in the stocks mentioned.

Latest Ratings for MCD

Date Firm Action From To
Jan 2016 Argus Research Upgrades Hold Buy
Jan 2016 Barclays Maintains Overweight
Jan 2016 Credit Suisse Maintains Outperform

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View the Latest Analyst Ratings

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