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Oppenheimer Urges Caution on McDonald’s (MCD)

By Dividend.com,  October 17, 2012, 10:58:47 AM EDT

Analysts at Oppenheimer on Wednesday issued some cautious commentary on fast food giant, McDonald's Corporation ( MCD ).

The firm reiterated its "Perform" rating on MCD, noting it doesn't expect much upside for the stock within the next several quarters.

Analyst Brian Bittner commented, "the Street's 3Q12 EPS target appears at risk and we envision an uphill road through 1Q13 that could prevent earnings upside and multiple expansion."

He also noted, "specific to 3Q12, we believe a sub-2% global comp could drive negative store-level operating leverage and restrict earnings growth. SSS comparisons get even tougher in 4Q12/1Q13 without high-powered weaponry to offset." Although the stock offers an attractive dividend yield, the firm remains cautious on the name.

McDonald's shares were down slightly during Wednesday morning trading.

The Bottom Line
Shares of McDonald's ( MCD ) have a 3.27% dividend yield, based on last night's closing stock price of $94.09. The stock has technical support in the $90 price area. If the shares can firm up, we see overhead resistance around the $96-$98 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.


This article appears in: Investing, Stocks

Referenced Stocks: MCD



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