Fast food giant McDonald’s Corporation (MCD - Free Report) fell nearly 3% in trading Monday, closing the day at $116.30 per share. McDonald’s joined the broader market in closing the day in the red as the aftershock of last week’s Brexit decision continues to bring the markets down.
Aside from the general sell off, McDonald’s was also hurt by being downgraded by analysts at Credit Suisse who dropped their price target for the stock from $135 to $130. By the analysts’ measure, nearly 37% of McDonald’s revenues come from Europe, and nearly 9% comes from the United Kingdom alone.
Such exposure to the volatile area could provide major headwinds for McDonald’s, especially as European currency has and continues to decline against the dollar.
The analysts also cited a pullback in customer spending as a reason for the downgrade, in addition to the excitement over promotions starting to calm down. McDonald’s has seen great success in the offering of breakfast menu items all-day, but the longer the promotion runs the more it likely will become just another part of the menu.
McDonald’s is currently a Zacks Rank #3 (Hold), though it does have an A Growth Style Score and a dividend yield of almost 3%. The rest of the year will be something to watch for the company as it continues to face a more health conscious customer and international headwinds. McDonald’s stock is still up over 21% in the last year, but it will need to continue to come up with promotions and menu innovation to continue to see solid results.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Fast food giant McDonald’s Corporation (MCD - Free Report) fell nearly 3% in trading Monday, closing the day at $116.30 per share. McDonald’s joined the broader market in closing the day in the red as the aftershock of last week’s Brexit decision continues to bring the markets down.
Aside from the general sell off, McDonald’s was also hurt by being downgraded by analysts at Credit Suisse who dropped their price target for the stock from $135 to $130. By the analysts’ measure, nearly 37% of McDonald’s revenues come from Europe, and nearly 9% comes from the United Kingdom alone.
Such exposure to the volatile area could provide major headwinds for McDonald’s, especially as European currency has and continues to decline against the dollar.
The analysts also cited a pullback in customer spending as a reason for the downgrade, in addition to the excitement over promotions starting to calm down. McDonald’s has seen great success in the offering of breakfast menu items all-day, but the longer the promotion runs the more it likely will become just another part of the menu.
McDonald’s is currently a Zacks Rank #3 (Hold), though it does have an A Growth Style Score and a dividend yield of almost 3%. The rest of the year will be something to watch for the company as it continues to face a more health conscious customer and international headwinds. McDonald’s stock is still up over 21% in the last year, but it will need to continue to come up with promotions and menu innovation to continue to see solid results.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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