McDonald’s Downgraded to “Hold” at Goldman Sachs; Several Headwinds Persist (MCD)

By Staff,

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Fast food superpower McDonald's Corporation ( MCD ) on Wednesday caught a big downgrade from analysts at Goldman Sachs.

The firm cut its rating on MCD from "Buy" to "Neutral" and lowered its price target from $100 to $92. That new target suggests a 5% upside to the stock's Tuesday closing price of $87.51.

Goldman also cut its earnings estimates for MCD through 2014, noting several economic headwinds and a deceleration in same-store sales . The firm said it prefers other opportunities in the restaurant space, including Starbucks ( SBUX ) and Chipotle Mexican Grill ( CMG ).

McDonald's shares fell 86 cents, or -1%, in premarket trading Wednesday.

The Bottom Line
Shares of McDonald's ( MCD ) have a 3.20% dividend yield, based on last night's closing stock price of $87.51. The stock has technical support in the $82-$85 price area. If the stock can firm up, we see overhead resistance around the $91-$92 price levels.

McDonald's Corporation ( MCD ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: MCD

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