Benzinga - by Surbhi Jain, .
McDonald’s Corp (NYSE:MCD) stock just made a Golden Cross giving reason to investors to say, “I’m Loving It!” The stock is up about 20% from Oct. 12, 2023, +9% over the past year.
The stock has also been riding up and down the past year, almost attempting to make symbolic “golden arches” between March and October 2023.
The Golden Cross (50-day SMA crossing over the 200-day DMA) on Jan. 11, should infuse confidence among current and prospective McDonald’s stock investors about bullish sentiments driving the stock.
Also Read: McDonald’s Double Big Mac To Make A Triumphant Return With Noteworthy Upgrades Like More Sauce, Better Sear
The stock is currently trading around the $292-$295 range. Stifel analyst Chris O’Cull had a Hold rating on the stock with a price target of $322, indicating a potential upside from current price levels.
HSBC had a price target of $317 and Truist Securities rated it a Buy with a price target of $340.
Consensus price target on the stock stands at $305.37 with a Buy rating from Wall Street analysts.
McDonald’s brand strength, global scale, cost leadership and strategic initiatives make it an attractive investment despite short-term uncertainties associated with new ventures like CosMc. The introduction of CosMc, a beverage-centric concept as part of its Accelerating the Arches strategy, positions McDonald’s as a formidable competitor to Starbucks Corp (NASDAQ:SBUX) in the long run.
McDonald’s recent resilient growth and strong quarterly results underscore its global systemwide sales and comparable store sales performance. The focus on customized beverages to challenge Starbucks, reflects the company’s commitment to strategic growth.
While CosMc may not yield immediate earnings accretion, McDonald’s ambitious target of reaching 50,000 restaurants by 2027 underscores its volume-based growth outlook.
Now Read: McDonald’s On The Brink Of History – Just 1% Away From Soaring To Unprecedented Record Highs
Photo: Courtesy McDonald’s
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