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McDonald's Stock: Safe or Risky?
The $18 Big Mac question! 🤔🍔
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Early Bird Prime for June 2, 2024
McDonald's (NYSE: MCD) stock is in a pickle, not the kind you find on their burgers.
The stock has taken a nosedive, down 12.84% in 2024, while the rest of the market is surging.
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Social media is having a field day with viral posts showing high menu prices, like a recent social media post about $18 for a Big Mac. Yes, you read that right -eighteen bucks for a sandwich that used to be the go-to for a cheap meal.
Customers are flipping out, and low-income consumers are giving McDonald's the cold shoulder.
Even McDonald's President Joe Erlinger had to step in, penning a letter this week to defend the company's pricing. When you have to write a public letter to justify your prices, you know things are getting spicy—and not in the good, McNugget-dipping-sauce kind of way.
But, positive change is coming to the fast food giant.
McDonald's is rolling out a $5 value meal in June, hoping to lure back the budget-conscious crowd.
Adding a sprinkle of optimism, KeyBanc Capital Markets analyst Eric Gonzalez reiterated an Overweight rating on Friday and slapped a $310 price target on McDonald's stock. That prediction is more than 20% higher than its current price.
Gonzalez believes U.S. same-store sales trends will improve in 2024 as year-over-year comparisons drop.
Due to these recent positive developments, should you invest in McDonald's now? Well, here’s the answer:
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