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

By
A A A
Share |

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 Dividend.com 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 The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: MCD

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

79%

Most Active by Volume

110,219,031
  • $6.79 ▲ 14.31%
104,982,008
  • $11.83 ▲ 12.35%
95,065,355
  • $3.40 ▲ 0.59%
79,694,763
  • $36.59 ▲ 2.64%
49,037,292
  • $39.90 ▲ 5.81%
47,069,528
  • $15.34 ▼ 1.03%
43,387,835
  • $6.56 ▼ 1.94%
42,066,487
  • $98.38 ▼ 0.65%
As of 7/29/2014, 04:04 PM