S&P 500   4,662.85
DOW   35,911.81
QQQ   380.01
S&P 500   4,662.85
DOW   35,911.81
QQQ   380.01
S&P 500   4,662.85
DOW   35,911.81
QQQ   380.01
S&P 500   4,662.85
DOW   35,911.81
QQQ   380.01

McDonald’s Stands Out As Tastiest Burger Play 

Thursday, December 16, 2021 | Thomas Hughes
McDonald’s Stands Out As Tastiest Burger Play 

Blue Chip McDonald’s Still Winning The Burger Wars 

After checking the latest happenings in the burger world two things have become clear. The burger and, in particular the QSR burger, the industry is doing just fine and within that McDonald’s (NYSE: MCD) stands out as the clear winner. The company does not have the most robust growth outlook but it is the largest competitor by a fair margin so the law of large numbers does apply. The pace of growth may be slowing but McDonald’s project $1.45 billion in YOY revenue growth is more than some of the others make all year and at least half of revenue for the rest. Along with that comes a relatively stable supply chain, a strong balance sheet, and a healthy dividend. 

McDonald’s Is Getting Upgrades At The Expense Of Peers 

McDonald’s received two notable upgrades this week while its peers continue to get downgraded and have their price targets reduced. McDonald’s upgrades come from BTIG Research and Barclay’s which maintained their Overweight and Buy ratings but raised their price targets to a consensus of $297.50. This compares to the Marketbeat.com consensus of $269 and implies about 12% of upside for the stock. These are the first analyst actions since the last earnings report when 11 of the 30 analysts covering the stock raised their price targets in a single day. 

Restaurant Brands International (NYSE: QSR), the owner of Burger King and Popeye’s Louisiana Kitchen, is also rated a Buy but a weak Buy with a notable difference of trend within the analysts. Barclay’s maintained its overweight rating on this stock as well but lowered the price target to $72 from $74 and more in line with the Marketbeat.com consensus estimate. The consensus estimate assumes about 24% of upside for the stock but the only analyst’s activity over the past two months, and there has been a fair amount, have been price target decreases, and this trend is seen in other names as well. 

Wendy’s (NASDAQ: WEN) last analyst note came out in mid-November making the second of two negative commentaries in a single week. Argus downgraded the stock to Hold from Buy while RBC lowered the price target to below consensus. The consensus figure is expecting about 24% upside here as well.

Jack In The Box Ready To Spring? 

Jack In The Box (NASDAQ: JACK) is the worst of the bunch in terms of the analysts with a long string of downgrades and price target decreases that began shortly after the last earnings report. The report was good but growth failed to impress the market and now the purchase of Del Taco has the analysts shaking their heads wondering why? The best guess is the company is working on a strategy akin to Yum! Brands (NYSE: YUM) but it may backfire. The current consensus is assuming about 40% of upside for the stock but has been moving lower over the past 90 days and we think it may continue to move lower in the near term at least. 

The Technical Outlook: The Analysts Are Pushing McDonald’s Higher 

McDonald’s doesn’t have the strongest growth outlook or even the highest expected price target but it does have what the others don’t and that is the support of the analyst. In our view, that is enough to sustain the rally and the rally is supported by strong fundamentals as well. Shares of McDonald’s should be able to sustain the uptrend and even look like a bullish flag is forming now. If this pattern confirms with a break to the upside we’d expect to see McDonald’s shares $20 or more within the following 2 to 3 weeks. 

McDonald’s Stands Out As Tastiest Burger Play 

Should you invest $1,000 in McDonald's right now?

Before you consider McDonald's, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and McDonald's wasn't on the list.

While McDonald's currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
McDonald's (MCD)3.1$257.71-1.4%2.14%26.57Buy$275.46
Restaurant Brands International (QSR)2.7$57.19-1.0%3.71%23.63Hold$69.77
Compare These Stocks  Add These Stocks to My Watchlist 


Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected]beat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.