McDonald

McDonald’s is set to report first-quarter earnings on Tuesday before the market opens. Despite the struggles of the fast-food industry, the Big Mac maker is likely to hold up better. Analysts polled by FactSet expect McDonald’s to post $2.72 per share earnings and $6.16 billion in sales for the first three months of 2024, marking a 3.4% and 4.4% growth from the same quarter a year ago, respectively. Inflation has taken a toll on consumer spending. Lower-income households, the primary customers of fast-food chains, are squeezed particularly hard, especially after food-stamp assistance was cut and student loan payments resumed last year. McDonald’s raised prices by 10% last year. Management noted that lower-income consumers have visited its stores less frequently and are spending less when they do. Meanwhile, price gains at grocery stores have slowed down this year. “Some of those consumers are just choosing to eat at home more often,” […]

By Denny Jacob McDonald’s agreed to buy Alonyal, which owns and operates the burger chain’s restaurants in Israel. The Oak Brook, Ill.-based company said it will own Alonyal’s restaurants and operations and that employees will be retained on equivalent terms. Alonyal grew its presence to 225 restaurants since bringing McDonald’s brand to Israel more than 30 years ago. “McDonald’s remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward,” said Jo Sempels, president of international developmental licensed markets at McDonald’s. McDonald’s is among the numerous restaurant companies that have been drawn into the Israel-Hamas war. In October, McDonald’s Israel business run by a local franchisee said on social media that it was providing free meals to Israeli soldiers. Other McDonald’s franchisees in the Middle East said they would donate to relief efforts in Gaza. Those moves drew angry criticism online,

TD Cowen analyst Andrew Charles reiterates McDonald’s (NYSE:MCD) with a Outperform and maintains $325 price target.

McDonald’s chicken sales are growing faster than beef, but the company has more work to do to claim more share in the market, the company says at an investor conference. Chicken counts for some of the chain’s biggest selling brands, but McDonald’s needs more of them, the company says. McDonald’s coffee is also too inconsistent as its restaurants use 100 different coffee machines across its global restaurants, and the company has more to do to improve its taste, the chain says.

By Angela Palumbo McDonald’s has been feeling the pressure as more people shift to grocery shopping as opposed to eating at restaurants. The fast-food chain has several plans to keep customers coming in for its Big Macs and Chicken McNuggets. During a presentation at the UBS Global Consumer and Retail Conference on Wednesday, fast-food giant McDonald’s noted a shifting trend of customers that has negative implications for the business. “You’re starting to see food at home inflation versus food away from home getting back to its more, I think, historical dynamic, which means I think some of those consumers are just choosing to eat at home more often,” said Chief Financial Officer Ian Borden. According to the U.S. consumer price index for February, prices for food at home have increased 1% over the last 12 months while prices for food away from home have jumped 4.5%. Consumers also are facing

McDonald’s (MCD) expects Q1 international developmental licensed segment sales to be slightly lower than the previous quarter due to the war in the Middle East and “challenges” in China, Chief Financial Officer Ian Borden said Wednesday. “I think you’ve heard lots of different companies talk about the, what I’ll call the macro and consumer challenges in China,” Borden said in a presentation at a retail conference, according to a Capital IQ transcript. “I think our business is doing okay, but I think the environment continues to be challenging.” Shares of McDonald’s were down more than 3% in recent trading.

McDonald’s Says Co Expects To Continue To Have A Negative Impact On Systemwide Sales And Revenue As Long As The Middle East War Continues。

McDonald’s Expects to Open More Than 2,100 Restaurants Globally in 2024.

Barclays analyst Jeffrey Bernstein maintains McDonald’s (NYSE:MCD) with a Overweight and lowers the price target from $343 to $340.

McDonald’s (MCD) Q4 results indicated a soft start to the year, with a somewhat “cautious tone” seen weighing on its shares, RBC Capital Markets said in a Monday note. “Near-term, we see continued focus on domestic trends as the likely driver of MCD share performance, particularly in a more value-conscious operating environment,” said RBC analysts Christopher Carril and Khadijah Gibson. “Longer-term, we continue to see MCD as well-positioned across areas of increasing focus, including loyalty, menu and digital.” Looking ahead to 2024, the analysts said they adjusted estimates modestly lower, with EPS to $12.44 from $12.66, but adding that there could be potential earnings upside from easing margin pressures. RBC cut its price target to $335 from $340 while retaining its outperform rating.

Barclays analyst Jeffrey Bernstein maintains McDonald’s (NYSE:MCD) with a Overweight and lowers the price target from $343 to $340.

McDonald’s (NYSE:MCD) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/06/2024 18.33% RBC Capital $340 → $335 Maintains Outperform 02/06/2024 20.1% Barclays $343 → $340 Maintains Overweight 02/06/2024 20.1% Truist Securities $345 → $340 Maintains Buy 02/06/2024 — BTIG Downgrades Buy → Neutral 02/06/2024 16.57% Wedbush → $330 Reiterates Outperform → Outperform 02/05/2024 13.03% Stephens & Co. → $320 Reiterates Overweight → Overweight 01/05/2024 — Oppenheimer Downgrades Outperform → Perform 01/04/2024 13.74% Stifel $285 → $322 Maintains Hold 12/20/2023 11.97% HSBC → $317 Initiates Coverage On → Buy 12/12/2023 20.1% Truist Securities $335 → $340 Maintains Buy 12/11/2023 5.62% Piper Sandler $273 → $299 Maintains Neutral 12/07/2023 0.67% Stifel $270 → $285 Maintains Hold 12/07/2023 11.27% RBC Capital → $315 Reiterates Outperform → Outperform 12/07/2023 18.33% BMO Capital $325 → $335 Maintains Outperform 12/07/2023 14.8% TD Cowen $300 → $325 Maintains Outperform