Wall Street did not like McDonald’s (NYSE: MCD) capital plan that was released last week; however, Credit Suisse is not as disappointed. The firm raised its price target from $96 to $103 and maintained its neutral rating.
Lead analyst Karen Holthouse writes, “As we expected, MCD capital allocation plan was a disappointment. We did not see room to add more than half a turn of leverage without running into issues with its "A" rating, and the plan to increase cash returns by $1.5-$3.5bil over the next three years can almost be entirely funded by growing cash from operations.”
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
The McDonald’s announcement also included plans to refranchise many of restaurants, especially outside of the US. Holthouse does not think refranchising is a bad decision, but should not move shares at this point.
Shares of McDonald’s are currently up 0.02 percent to $101.45 in pre-market trading, however there is very little volume.