financetom
Personal Finance
financetom
/
Personal Finance
/
Research Alert: CFRA Upgrades Opinion On Shares Of Mcdonald's Corp To Buy From Hold
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Research Alert: CFRA Upgrades Opinion On Shares Of Mcdonald's Corp To Buy From Hold
May 7, 2026 11:10 AM

01:45 PM EDT, 05/07/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our target by $33 to $317, 24x our 2026 EPS estimate and in line with the shares' ten-year average forward multiple. We lower our 2026 EPS view to $13.21 from $13.44 and 2027's to $14.11 from $14.27. We upgrade MCD from Hold to Buy. Shares trade at a 12% discount to their ten-year forward average, creating an attractive entry point despite near-term margin headwinds from restaurant operating costs, particularly beef costs. We expect margin normalization as traffic gains scale and value messaging matures. Q1 results outperformed on total revenue, global comps, and adjusted EPS, with developed market comps of +3.9%, improving 490 bps sequentially, and developing markets maintaining momentum at +3.4%. In our view, results suggest value positioning is resonating globally and driving traffic recovery. MCD's category expansion into chicken and beverages provides incremental growth optionality, while >80% free cash flow conversion supports continued investment in restaurant development and shareholder returns.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved