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Investing.com - KeyBanc Capital Markets maintained its Overweight rating and $335.00 price target on McDonald’s (NYSE:MCD) stock in a research note released Monday. The fast-food giant, currently valued at $219.85 billion, maintains a solid 2.3% dividend yield and carries a "GOOD" overall financial health rating according to InvestingPro analysis.
The firm noted that investor expectations for McDonald’s U.S. performance have moderated to the 1.5-2% range, creating what it describes as a "more reasonable" setup for the company, with fourth-quarter results expected to show significant improvement. With analyst targets ranging from $250 to $381, McDonald’s currently trades above its InvestingPro Fair Value.
KeyBanc’s industry conversations indicate baseline trends have improved modestly since McDonald’s launched its Monopoly promotion, suggesting a potential uptick in customer engagement and sales activity.
The $335 price target represents approximately 25 times KeyBanc’s 2026 earnings per share estimate of $13.50 for McDonald’s, compared to the stock’s current trading multiple of about 23 times forward earnings.
The firm’s valuation methodology incorporates both peer group analysis of free cash flow generation and discounted cash flow analysis, using a terminal growth rate of 1.9% and a weighted average cost of capital of 6.6%.
In other recent news, McDonald’s has seen several changes in analyst ratings and price targets amid varying sales forecasts. TD Cowen has lowered its price target for McDonald’s to $320, maintaining a Hold rating due to weaker-than-expected U.S. same-store sales, now forecasted at 2% for the third quarter. Guggenheim also reduced its price target to $295, citing softer restaurant industry trends, while keeping a Neutral rating. RBC Capital initiated coverage with a Sector Perform rating and a $320 price target, expressing caution over McDonald’s focus on value offerings and its impact on traffic and check sizes. Jefferies has maintained a Buy rating with a $360 price target, though it adjusted its U.S. same-store sales estimate to 2.5% and expects earnings per share to be slightly below consensus estimates. KeyBanc reiterated its Overweight rating with a $335 price target, projecting U.S. same-store sales growth at 2.5% for the third quarter, aligning with market expectations. These developments highlight the varied perspectives on McDonald’s performance and future outlook among different analyst firms.
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