Business & Investment

McDonald’s is under analyst optimism in 2021, but pizza may have problems

McDonald’s stock
+ 0.46%

Upgraded to outperform in Oppenheimer, optimistic analysts pointed out the launch of a fast-food giant’s upcoming loyalty program and its marketing potential, including additional celebrity partnerships. ..

Oppenheimer has set a $ 240 price target for McDonald’s stock, which is about 13% higher than its current price.

It is the first time since 2012 that Oppenheimer has rated McDonald’s stock as outperforming.

Analysts point out that McDonald’s stock has recently underperformed and the Dow Jones Industrial Average has fallen 6% in the last three months.
+ 0.69%

It has increased by 9.8%.

However, the company has many factors.McDonald’s Collaboration with musicians Travis Scott and J Balvin on meals that facilitated the sale and use of the app.

And as the Chicken Sandwich War continues, McDonald’s will launch a new crispy chicken sandwich on February 24th.

Yum! Brands Co., Ltd.

Brand KFC has announced that it will launch new chicken sandwiches in some markets on Thursday after testing in Florida. Sandwiches are scheduled to go nationwide by the end of February.

read: McDonald’s Shake Shack in a restaurant chain starting 2021 with the addition of a menu

McDonald’s is also in a position to make a profit overseas.

“As the global economy recovers, especially in Europe, this dynamics represents a powerful catalyst within McDonald’s financial model,” wrote Oppenheimer analyst, led by Brian Bitner.

“This is further accentuated by the large number of co-owned stores abroad” — 2.5 times more than domestic co-owned units — “this will change the financial model as overseas sales recover. We are exposed to improved store-level margins.

Oppenheimer downgraded rival Wendy’s.

Run from outperform.

“We remain bright towards the continuation of strong fundamentals, especially as Wendy’s talented management builds on the success of last year’s breakfast launch,” said the analyst.

to see: From KFC-themed lifelong films to Taco Bell Resort: Why Yum! Brands’ Over the Top Marketing Stunts Work

“But as a result of detailed analysis, we are having a hard time identifying the financial benefits of the consensus model. [1921–22] Or discover new catalysts that allow you to expand your reputation. “

MKM Partners has raised some warning signs in the pizza sector and lowered its price target.

Pizza chain stock Hold up During the pandemic, orders relied heavily on digital technology, and businesses relied heavily on delivery rather than food service.

MKM is Papa John’s International Inc.Valuing the stock of
+ 0.34%

Neutral with a price target of $ 93 to $ 91. And Domino’s Pizza.

Is rated neutral with a price target of $ 445 to $ 440.

Papa John’s has increased by 47% over the past year, while Domino’s has recovered by 32.2% during this period.

Yum! Brands Pizza Hut Chain During shift Analysts say they need to support the company in 2020, from meals to take-out and delivery, and continue to do so for the next few years.

Analyst Brett Levy said, “Pizza players do not benefit from strong wind tailwinds from simple comparisons and can be hampered by optimism from vaccine deployments.

“But even if we’re heading towards normalization, the non-contact digital world should survive. I don’t think the pizza cohort will be forgotten by consumers, but 2021 is a challenge. I admit that it will be a targeted and uncertain year. “

McDonald’s is under analyst optimism in 2021, but pizza may have problems McDonald’s is under analyst optimism in 2021, but pizza may have problems

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