McDonald's Stock Has 25% Upside, According to 1 Wall Street Analyst
McDonald's (NYSE: MCD) is well positioned to gain market share, according to UBS analyst Dennis Geiger. The fast food chain faces tough economic environments in certain international markets as well as weakening spending from lower-income consumers in the U.S. However, Geiger still sees McDonald's as one of the best-positioned restaurant chains to ride out the storm.
UBS maintained its buy rating on McDonald's stock on Friday while slightly lowering its price target to $335 to reflect these challenges. The new price target still suggests an upside of about 25% over the next 12 months or so.
McDonald's CFO Ian Borden disclosed last month that lower-income Americans are beginning to adjust their behavior in response to rising prices. More people are choosing to eat at home, forgoing McDonald's despite the chain's focus on appealing to cost-conscious consumers.
Source Fool.com
