Based on the comprehensive data analysis and recent market developments, here's a direct assessment of MCD's current position:
Technical Analysis
The stock is currently trading at $285.46, showing weak momentum with RSI at 45.96, indicating a neutral-to-bearish sentiment. The price is trading below both its 20-day MA ($287.10) and 60-day MA ($291.71), suggesting a short-term downward trend.
Recent Performance & Challenges
McDonald's has faced significant headwinds, including:
- Recent E. coli outbreak affecting 104 people
- Underwhelming Q3 2024 results with only 3% revenue growth
- Global comparable sales decline of 1.5%
- U.S. same-store sales barely positive at 0.3%
Analyst Consensus
Recent analyst actions show mixed but generally positive sentiment:
- Keybanc: Price target lowered to $320 (12.1% upside)
- Morgan Stanley: Target reduced to $336 (18.9% upside)
- Citigroup: Upgraded to Strong Buy with $334 target (18.3% upside)
2025 Outlook
Wall Street expects:
- Revenue growth of 3.8%
- EPS growth of 6.8% to $12.61
- Focus on digital transformation and menu innovation
Sell Recommendation
Based on current technical weakness, operational challenges, and market conditions, selling MCD stock appears prudent at this time. The stock has underperformed the S&P 500 in 5 of the past 6 years, and near-term catalysts for significant upside appear limited.