McDonald's Analysts Slash Their Forecasts Following Q1 Results
Portfolio Pulse from Avi Kapoor
McDonald's Corp reported mixed Q1 FY24 results with a 4.6% sales growth to $6.17 billion, slightly above estimates, but an adjusted EPS of $2.70, missing estimates. Global and U.S. comparable sales continued to grow. The company anticipates a mid-to-high 40% operating margin and plans $2.5-$2.7 billion in capital expenditures. Following the announcement, analysts from Baird, Wedbush, and BMO Capital adjusted their price targets for McDonald's, all maintaining an Outperform rating but lowering their price targets.
May 01, 2024 | 12:52 pm
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McDonald's reported mixed Q1 FY24 results, with sales growth but a slight miss on EPS. Analysts remain optimistic but have lowered price targets.
The mixed Q1 results with a slight miss on EPS expectations could lead to short-term stock price volatility. However, the continued growth in global and U.S. comparable sales, along with positive outlook and adjustments in analyst price targets, suggest a neutral to slightly positive outlook in the short term. Analysts maintaining an Outperform rating but lowering price targets reflect a cautious optimism, indicating potential for growth but acknowledging the missed EPS expectations.
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