McDonald's: Goldman Sachs begins monitoring on Hold

(CercleFinance.com) - On Thursday, Goldman Sachs began to monitor McDonald's shares with a 'neutral' rating and a target price of $288, explaining that it sees a 'balanced' risk/reward profile at current price levels.


In a sector report, the broker said that it is concerned about the desertion of the group's restaurants by lower-income customers and the trend towards low-price offerings in the sector as a whole.

In this context, it highlights the fast-food giant's plans to launch a five-dollar menu in the US at the end of the month, for a period of one month.

For Goldman Sachs, this strategy poses a number of short-term risks, as demonstrated by the mixed effects of a similar campaign in 2018.

The analyst nevertheless considers the group to be a 'winner' from a long-term perspective, thanks to both its unrivalled footprint and its lead in digital technologies.

Goldman also points out that the stock tends to resist well during economic slowdowns.


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