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UBS lowered its target from $340 to $320 while keeping its buy rating. This follows similar moves by other analysts earlier in the month as the chain works to win back diners who have become more careful about spending. Even with the lower target, the firm's outlook remains well above the current stock price and the average analyst target of $305.
Source: UBS
McDonald's has officially become a Dividend King, a title for companies that have raised their cash payments to shareholders for at least 50 consecutive years. The board approved a 4 percent increase to the quarterly payout, which now stands at $1.93 per share.
This milestone is a sign of a business that can generate steady cash through almost any economic environment. While the 4 percent raise is modest, it shows management is confident in the company's ability to keep funding its growth plans and dividends even as it works through a period of slower sales.
Source: PRNewsWire
Deutsche Bank lowered its target for the stock from $325 to $300 while keeping its buy rating. This follows a similar move by Morgan Stanley earlier in the week as analysts adjust their expectations for the burger chain. The average target across all firms now sits at about $304. Even with these lower targets, analysts generally still see the stock as undervalued. The new $300 target is about 20 percent higher than where the stock trades today. These tweaks reflect a period where the company is working to win back customers who have become more careful with their spending.
Source: Deutsche Bank
Morgan Stanley lowered its price target for the restaurant chain from $319 to $308. This is a small adjustment that reflects a slightly lower expectation for the stock's price over the next year, but it does not change the firm's overall rating. Even with the lower target, the firm still expects the stock to be worth significantly more than its current price of about $257. Other analysts have a similar view, with the average target across all firms sitting at $309. While the company is working through a period where customers are more careful with their spending, most analysts still see the business as a strong long-term bet.
Source: Morgan Stanley
Wheat prices have climbed about 30 percent since June as conflict in the Black Sea region disrupts global supplies. For a company that buys as much bread and flour as this one, a sustained jump in commodity prices makes it more expensive to run its kitchens.
This comes at a difficult time because the company is already trying to win back customers with cheaper value menus. If the cost of ingredients stays high, it will be harder to keep those meal prices low without eating into the company's own profits.
Source: WSJ
Management consistently sets a bar they can clear with small, steady beats. This pattern suggests they have a firm handle on their costs and can reliably predict their results.
| Expectation | |
|---|---|
| EPS | $3.39 |
| Revenue | $7.32B |