China's Office Market Faces Oversupply Crisis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Source: Benzinga
- Office Market Crisis: China's office sector is facing severe oversupply, with Shenzhen's supply-to-demand ratio reaching 2.7:1, leading to rising vacancy rates, although government support for developers is preventing major bankruptcies.
- Declining Absorption Rates: The net absorption rate for office space has dropped from 3.34 million square meters in 2021 to just 1.1 to 1.2 million square meters over the past three years, highlighting the economic slowdown's impact on the market.
- Resilience in Fast Food: In stark contrast to the office market's struggles, the fast-food sector remains robust, with Yuen Kee planning to open 10 stores in Singapore by 2024, showcasing its potential for international expansion.
- Expansion Challenges: Despite Yuen Kee's strong performance in China, it faces challenges in global expansion, particularly in non-Asian markets, necessitating a careful focus on Southeast Asia to maintain brand reputation.
Analyst Views on MCD
Wall Street analysts forecast MCD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MCD is 337.63 USD with a low forecast of 300.00 USD and a high forecast of 375.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
12 Buy
11 Hold
0 Sell
Moderate Buy
Current: 314.130
Low
300.00
Averages
337.63
High
375.00
Current: 314.130
Low
300.00
Averages
337.63
High
375.00
About MCD
McDonald's Corporation is a global foodservice retailer. Its segment includes U.S., International Operated Markets, and International Developmental Licensed Markets & Corporate. The U.S. segment is its largest market and is 95% franchised. The International Operated Markets segment is comprised of markets, or countries in which it operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, Poland, Spain, and the United Kingdom. This segment is 89% franchised. The International Developmental Licensed Markets & Corporate segment is comprised of developmental licensee and affiliate markets, including equity method investments in China and Japan. This segment is 99% franchised. Its menu features hamburgers and cheeseburgers, the Big Mac, the Quarter Pounder with Cheese, the Filet-O-Fish, and several chicken sandwiches, such as the McChicken and McCrispy as well as Chicken McNuggets, Fries, shakes, sundaes, cookies, soft drinks, coffee, and other beverages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
