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Investing.com - Truist Securities raised its price target on McDonald’s (NYSE:MCD) to $360.00 from $356.00 on Thursday, while maintaining a Buy rating on the fast-food giant’s shares. The company, currently trading at $307.21 with a market capitalization of $220 billion, maintains a solid position in the Hotels, Restaurants & Leisure industry.
The price target adjustment represents a modest increase of $4.00 per share in Truist’s valuation of the company, reflecting what the firm sees as building sales momentum. According to InvestingPro data, 15 analysts have revised their earnings upward for the upcoming period, suggesting growing confidence in the company’s prospects.
In its analysis, Truist Securities specifically noted that McDonald’s is showing "SSS Momentum Builds Despite Macro (BCBA:BMAm) Pressures," suggesting the company’s same-store sales are strengthening even amid challenging economic conditions.
The firm’s continued Buy rating indicates Truist remains confident in McDonald’s overall business performance and future prospects despite broader market challenges.
McDonald’s has been navigating various economic headwinds affecting the restaurant industry, including inflation and shifting consumer spending patterns, while apparently maintaining sales growth according to Truist’s assessment.
In other recent news, McDonald’s reported its second-quarter earnings, with earnings per share reaching $3.19, surpassing JPMorgan’s estimate of $3.09 and the consensus of $3.15. The company achieved a 2.5% increase in comparable sales in the U.S. and a 4% growth in its International Operated Markets. Following these results, several financial firms adjusted their price targets for McDonald’s stock. JPMorgan raised its target to $310, maintaining an Overweight rating. Piper Sandler increased its price target to $325 while keeping a Neutral rating, citing solid results in U.S. same-store sales and better-than-expected performance in international markets. KeyBanc Capital Markets also raised its price target to $335, highlighting global strength in same-store sales during a competitive period. UBS reiterated a Buy rating with a $350 price target, noting McDonald’s strategic execution and potential for market share gains. Meanwhile, Stifel maintained a Hold rating and a $300 price target, acknowledging U.S. sales growth driven by higher average check values despite challenges in customer traffic.
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