McDonald’s Expected To Reach A Share Price Of $120

The fast food chain is expected to reach a share price between $110 to $120 if all the turnaround plans end up being successful.

In the most recent McDonald’s news update, it has been seen that an analyst at equity firm Matrix Asset Advisors, David Katz, has declared that the stock of the fast food company has quite a lot of capability of climbing upwards, given the right steps are taken by the food firm. The analyst believes that the share price of the fast food chain restaurants can go up to $120, which seems to be quite a bullish price to grant the food firm keeping in mind the difficulties that it has been facing on the stock lately.

In a recent research note that was presented by the Matrix Advisors, David Katz was seen discussing the near future of McDonald’s restaurants and where it can be ending up. Katz said that he and his firm believe that the food chain is capable of reaching a share price between $110 to $120 along with an expectation of around 3.5 percent of returns in the form of dividends and cash pay backs.

The analyst was also persistent about the fact that the famous food company has a strong global value and difficult times on the stock index cannot change that. The reason that the analysts of the firm have increased their stake on the firm is that recently, Steve Easterbrook who has come up with a new plan to turn the company around is expected to work in favor of the fast food makers.

It is to be believed by the analysts that McDonald’s stock is expected to trade upwards as the recent menu revamp that the firm is planning to go through is sure to bring about a positive upheaval in the business activities of the company. Keeping in mind the new additions to the menu and cutting off of old products that were not turning out to be profitable, it seems to the analysts that these much-needed changes are going to help the firm in all the right ways and take it to new heights where it is planning to reach.

Katz, in a report, exclaimed that McDonald’s has been going through massive changes since the time Easterbrook has taken hold of the firm which is giving out all the positive signs of growing in the right direction. Easterbrook has made plans to turn things around in the company by bringing about changes in the way business is carried so that all the issues that have been being a problem for the firm previously are all looked after and are eradicated to help boost the firm.