McDonald's cut at BTIG as it now expects more modest growth

  • Stock Market News
McDonald's cut at BTIG as it now expects more modest growth
Credit: © Reuters.

Analysts at BTIG downgraded shares of McDonald's (NYSE: MCD ) to Neutral from Buy in a note Tuesday, removing its price target for the stock following its latest quarterly results.

Analysts at BTIG said they expect more modest growth for the fast food giant in the near future based on factors such as discounting intensifying and the Middle East conflict weighing on McDonald's sales.

"Sales trends have normalized, operating conditions have become more uncertain, and earnings upside seems more limited," said BTIG.

While the firm continues to believe that McDonald's will take market share, accelerate development and expand operating margins, they also feel sales and earnings growth are returning to more normalized levels following their multi-year boom.

"Given this backdrop and estimated mid-single digit earnings growth this year, we believe the forward multiple likely contracts modestly and supports a more Neutral position on shares," BTIG concluded.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or