Stock Price & Analysis

Based on the recent data and market analysis, McDonald's stock shows mixed signals:

Technical Analysis

The stock is currently trading at $280.95, showing bearish technical indicators with RSI at 35.23, indicating oversold conditions. The stock is trading below both its 20-day ($288.66) and 60-day ($292.82) moving averages, suggesting a downward trend.

Recent Performance & Catalysts

• The stock has underperformed the S&P 500 in 5 of the past 6 years
• Global comparable sales declined by 1.5% in Q3 2024, with U.S. showing minimal growth of 0.3%
• Director John Mulligan recently announced retirement effective at 2025 Annual Shareholders' Meeting

Positive Factors

• Wall Street projects 3.8% revenue growth and 6.8% EPS growth for 2025
• Recent upgrade by Citigroup to Strong Buy with $334 price target (18.31% upside)
• Strong brand value with over 40,000 locations globally

Negative Factors

• Trading at 25x forward earnings, which appears fairly valued given modest growth outlook
• Facing increased competition in quick-service restaurant category
• International markets showing weakness with declining comparable sales

Fibonacci Levels

• Resistance: R1 at $293.12, R2 at $297.62
• Support: S1 at $278.55, S2 at $274.05
• Current price near S1 support level

Given the current technical weakness but potential for 2025 recovery based on analyst projections, holding current positions while waiting for better entry points below $278 (S1 support) would be prudent. The stock appears to need more positive catalysts to break its current downtrend.

Based on the provided data and recent analyst reports, here's a concise price prediction for McDonald's (MCD) stock in 2025:

McDonald's stock is expected to reach $294 by the end of 2025, driven by its aggressive digital transformation and recovery in global comparable sales. The recent E. coli outbreak impact should fade, while the new McValue menu and expanded $5 meal deals are expected to boost traffic.

The stock faces near-term headwinds from slowing traffic across major markets, but analysts project 6% earnings growth through 2026 with strong fundamentals intact.

The S1 support level for MCD Stock is $277.95 ,The R1 resistant level for MCD Stock is $286.54.

As of the end of day on 2025-01-24, the price of MCD Stock was $285.49.

The target price for MCD Stock according to analyst rating is 322.73, with the highest price target at 350.00 and the lowest at 257.00. Analysts have a Moderate Buy rating on MCD Stock overall.

The market cap of MCD is $204.6B.

Based on the provided data and recent market developments, here's a comprehensive analysis of McDonald's (MCD) valuation:

Technical Analysis MCD is currently showing bearish signals with RSI at 35.23, well below the neutral level of 50, indicating oversold conditions. The MACD at -3.57 suggests downward momentum. The stock is trading below both its 20-day (288.66) and 60-day (292.82) moving averages, confirming the bearish trend.

Valuation Metrics The stock appears richly valued based on Q3 2024 metrics:

• P/E ratio: 26.73x (above historical average)
• EV/EBITDA: 18.53x
• P/S ratio: 8.50x
• Dividend yield: 2.23%

Recent Performance & Challenges According to recent reports, McDonald's has faced several headwinds:

• Global comparable sales declined 1.5% in Q3 2024
• U.S. business showing minimal growth at 0.3%
• International markets experiencing negative growth
• E. coli outbreak impact from September-October 2024

Growth & Recovery Initiatives The company is implementing several strategies to address challenges:

• Launching Chicken Big Mac across more regions
• Extending $5 meal deals
• Introducing McValue menu options
• Expanding McSmart menu in Europe to combat inflation
• Growing loyalty program (150M active members, targeting 250M by 2027)

Financial Health Q3 2024 results show:

• Revenue: $6.87B
• Net Income: $2.26B
• Gross Margin: 56.38%
• Net Margin: 32.81%

Conclusion At current levels, MCD appears overvalued considering:

1. Recent operational challenges
2. Premium valuation multiples
3. Negative technical indicators
4. Declining global sales trends

The stock may face further downward pressure until these headwinds resolve.

McDonald's Corporation is a foodservice retailer with over 40,000 locations in over 100 countries. The Company's segment includes United States, International Operated Markets and International Developmental Licensed Markets & Corporate. The International Operated Markets segment is comprised of markets, or countries in which the Company operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, Poland, Spain and the United Kingdom. This segment is over 89% franchised. The International Developmental Licensed Markets & Corporate segment is comprised of developmental licensee and affiliate markets in the McDonald’s system. This segment is around 98% franchised. Its menu features hamburgers and cheeseburgers, the Big Mac, the Quarter Pounder with Cheese, the Filet-O-Fish, and several chicken sandwiches like the McChicken, McCrispy and McSpicy. Approximately 95% of McDonald’s restaurants worldwide are owned and operated by independent local business owners.

Based on the comprehensive analysis of available data and market research, here's the price prediction for McDonald's (MCD) stock by 2030:

McDonald's stock is projected to reach $375-385 by 2030, driven by its digital transformation success and global expansion despite recent headwinds. The company's aggressive push into digital and delivery segments, combined with its proven ability to perform in challenging economic environments, supports this moderate growth trajectory.

The recent E.coli outbreak and slowing comparable store sales in 2024 have created temporary pressure, but McDonald's strong franchise model and consistent dividend growth history suggest long-term resilience.

The views and opinions expressed herein are for informational purposes only. Past performance is not indicative of future results. This is not financial advice.

MCD has a total of 150000 employees.