Market Overview

Stephens: McDonald's Is Making The Necessary Changes To Win


Will Slabaugh of Stephens on Thursday commented in a note that McDonald's Corporation (NYSE: MCD) is willing to make the necessary changes, as evidenced by the decision to allow its CEO Don Thompson to step down.

“While it is difficult to determine immediate implications, we believe this is a clear sign that McDonald's is willing to make the changes necessary to win,” Slabaugh wrote. “We also believe that this opens the conversation to multiple value-creating initiates that the previous management team was seemingly unwilling to entertain, including improving menu innovation at the lower end, refranchising a majority of company-owned stores, and adding debt to an under levered balance sheet to return cash to shareholders.”

Related Link: Brian Sozzi Knows Why McDonald's Showed Its Embattled CEO The Door

Slabaugh notes that McDonald's is in a position to improve fundamental performance and support a higher stock price. As such, shares present an attractive risk to reward profile at current levels.

Shares are Overweight rated with a $105 price target.

Latest Ratings for MCD

Jan 2021OppenheimerUpgradesPerformOutperform
Jan 2021Stephens & Co.MaintainsEqual-Weight
Jan 2021WedbushInitiates Coverage OnOutperform

View More Analyst Ratings for MCD
View the Latest Analyst Ratings


Related Articles (MCD)

View Comments and Join the Discussion!

Posted-In: Don Thimpson Fast Food McDonald's Stephens Will SlabaughAnalyst Color Management Analyst Ratings

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at