UBS reiterates Buy on McDonald’s stock ahead of Q3 earnings
UBS has maintained its Buy rating on McDonald's stock, with a price target of $320.00, as the company prepares to release its Q3 earnings report on November 4. UBS expects a challenging U.S. performance for the quarter due to broader economic conditions, anticipating a nearly 1% decline in same-store sales compared to estimates of 0.4%.
The firm highlights potential growth opportunities in menu innovation, value perceptions, and consumer insights, as well as insights into McDonald's international markets. Analysts are particularly interested in McDonald's NEXT growth strategy and latest U.S. value plans, as well as initial thoughts on its 2027 outlook. McDonald's is currently trading at $241.18, down about 29% from its 52-week high of $341.75, with a P/E ratio of 19.63.
The stock appears undervalued according to InvestingPro's Fair Value estimates, and the company has a strong dividend record, having increased its payout for 51 consecutive years with a current yield of 3.18%.
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