Oppenheimer downgraded McDonald’s (NYSE:MCD) to a Perform rating (From Outperform) and removed their 12-month price target on the stock.
McDonald’s was a “Top Pick” in 2023, and its shares have risen to within 7% of Oppenheimer’s previous price target of $315 for the stock. Despite significant double-digit EPS revisions in 2023, Oppenheimer analysts don't see any clear catalysts that could further influence the consensus model.
“Following a deep-dive analysis into 2024, we are unable to identify another round of catalysts to consensus earnings forecasts and/or MCD’s valuation multiple.” Wrote analysts in a note.
Their forecast indicates that same-store sales might perform in line with expectations this year. Oppenheimer suggests this could be due to pricing advantages diminishing and challenges in gaining market share among budget-conscious consumers, leading to relatively stable performance.
Shares of MCD are down 0.87% in early trading Friday morning.