McDonald's Analysts Increase Their Forecasts After Strong Q2 Results

McDonald's Corp MCD reported better-than-expected second-quarter results.

McDonald's reported second-quarter FY23 sales growth of 13.6% year-on-year to $6.50 billion, beating the analyst consensus of $6.29 billion. Adjusted EPS of $3.17 beat the analyst consensus of $2.79.

McDonald's sees FY23 operating margin of 45%; Capital expenditure of $2.2 billion - $2.4 billion.

McDonald's shares rose 1.2% to close at $295.19 on Thursday, and added 0.3% in today’s pre-market trading session.

These analysts made changes to their price targets on McDonald's following earnings announcement.

• Barclays boosted the price target on McDonald's from $330 to $345. Barclays analyst Jeffrey Bernstein maintained an Overweight rating.
• Citigroup increased the price target on McDonald's from $308 to $317. Citigroup analyst Jon Tower maintained a Neutral rating.
• Baird raised McDonald's price target from $320 to $330. Baird analyst David Tarantino maintained an Outperform rating.
• Wedbush analyst Nick Setyan, meanwhile, reiterated McDonald's with an Outperform and maintained a $330 price target.
• Stephens & Co. analyst Joshua Long reiterated McDonald's with an Overweight and maintained a $325 price target.

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