McDonald's stock rebounds after E. coli scare, analysts predict double-digit rally, and institutional buyers increase stake.

From Nasdaq.: 2024-10-29 12:15:00

McDonald’s stock experiences a 6.9% sell-off due to E. coli concerns, offering investors a discount. Investigations clear the company’s meat patties of contamination, leading to a quick recovery. Analysts predict a double-digit rally, with price targets ranging from $318.2 to $350 per share, signaling potential upside.

With expectations of $3.34 EPS next year, McDonald’s shows steady growth potential. Quarterly earnings results reveal a 3% increase in sales and a 6% rise in cash dividend. Despite a 1% EPS increase, the stock reacts positively, hinting at a recovery post-E. coli incident. Market valuations suggest outperformance compared to industry peers.

McDonald’s stock trades at a premium multiple compared to industry averages, signaling market expectations for outperformance. A large institutional buyer increases stake by 14.5%, totaling $232.1 million. Short interest in the stock declines by 3.6%, defying expectations. Wall Street analysts project further upside for the stock.



Read more at Nasdaq.:: Is McDonald’s Stock a Smart Buy After Sell-Off and Earnings?