On February 10, McDonald’s (NYSE: MCD) released its Q4 2024 earnings report, which showed mixed results. While the company’s adjusted earnings per share (EPS) of $2.83 met analysts’ expectations, its quarterly net revenues of $6.388 billion fell short of the consensus estimate of $6.477 billion.
Despite the revenue miss, McDonald’s stock saw a rise in pre-market trading due to strong international sales and positive investor sentiment.
Furthermore, CEO Chris Kempczinski emphasized that the company’s Accelerating the Arches strategy remains the right approach for expanding market share, focusing on value offerings, menu innovation, and culturally relevant marketing.
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McDonald’s (NYSE: MCD) stock price
Yesterday, on Wednesday, February 12, McDonald’s stock closed at $307.60. It saw a slight decline of 0.84% from the previous close of $310.21, with the day’s low at $305.77 and high at $309.58, all while the market cap remains impressive at $220.43 billion.
Wall Street’s take on MCD stock price
Analysts have set a 12-month average price target of $327.96 for McDonald’s stock, indicating a 6.62% potential upside from the last closing price, according to TipRanks.
The price target range spans from a low of $290 to a high of $360. Furthermore, experts’ consensus rating is “Moderate Buy,” reflecting a generally bullish outlook on McDonald’s performance over the next year, with no analysts suggesting selling.
Strategists appear to have a bullish sentiment about McDonald’s growth prospects, citing strong performance in the value segment and expansion plans as key drivers. What’s more, the company’s focus on attracting low-income consumers through initiatives like the McValue menu has been well-received.
Still, there are concerns about potential challenges in the US market and cash flow issues. But despite these challenges, the consensus remains positive, with expectations of continued sales growth and market share expansion.
Featured image via Shutterstock
