McDonald’s (NYSE:MCD) snapped seven straight sessions of losses on Wednesday as its shares inched up 0.43% to close at $301.72.
The fast-food retailer lost nearly 4% in the previous seven sessions and it closed 1.43% lower on June 10. In the year so far, however, it has gained more 3.56% outpacing the 2.83% rise in the broader markets.
As per at Seeking Alpha’s quant rating, MCD has a Hold rating with a score of 3.20 out of 5. The company has been rated A+ for profitability but has scored an F for valuation. Seeking Alpha analysts also share a consensus rating of Hold for the stock.
However, Wall Street analysts are rather bullish on the fast-food chain and have issued a Buy call for the stock. Overall, 18 analysts gave the company a Buy rating and above while 17 recommended to Hold the stock and 1 had a Strong Sell call.
Earlier this week, Morgan Stanley analyst Brian Harbour downgraded McDonald’s to Equal-weight from Overweight and trimmed his price target by 1.5% to $324, arguing that the stock is currently trading at a historically high premium to rivals. Harbour believes this valuation could leave the burger chain vulnerable if pressure on the quick-service restaurant sector escalates.
However, Seeking Alpha analyst ABI Invest believes that the company is well-placed to capture market share with value-driven offerings and new product launches, even amid challenging macroeconomic conditions.
“In addition to focusing on value offerings, McDonald’s is also poised to benefit from new product launches and marketing campaigns. The nationwide launch of McCrispy Chicken Strips, as well as the reintroduction of Snack Wraps on July 10th this year, should help growth,” they said.
Another analyst Alpha Investments said that they view MCD “as a resilient, cash-generating compounder, with a business model built for the long haul.”