13 Best Roth IRA Stocks to Buy Now

Page 4 of 12

9. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 83

On February 6, Mizuho raised its price recommendation on McDonald’s Corporation (NYSE:MCD) to $325 from $300. It maintained a Neutral rating on the stock. The firm pointed to stronger-than-expected fourth-quarter results as the reason for the increase. At the same time, the analyst cautioned that upside to 2026 estimates is not assured.

Reuters reported on February 11 that McDonald’s exceeded Wall Street expectations for fourth-quarter global comparable sales and profit. Meal deals and marketing promotions helped attract value-focused U.S. customers, while demand remained steady in Australia and Britain.

Global same-store sales rose 5.7% in the quarter ended December 31, ahead of the 3.7% increase analysts had projected, according to LSEG data. The company delivered growth at a time when many restaurant operators are facing weaker traffic as consumers limit spending .McDonald’s reported adjusted earnings of $3.12 per share, up 10.2% from $2.83 a year earlier and above the $3.05 analysts had expected.

In the US, comparable sales increased 6.8% in the October to December period. This marked the third straight quarter of growth, compared with a 1.4% decline a year earlier when demand was affected by an E. coli outbreak. Analysts had been looking for a 4.9% increase. Sales in International Operated Markets rose 5.2%, supported by performance in Britain, Germany, and Australia. In International Developmental Licensed Markets, sales climbed 4.5%, led by Japan. Revenue increased 10% to $7.01 billion, while net income rose 7% to $2.16 billion.

McDonald’s Corporation (NYSE:MCD) is a global foodservice retailer. It operates through three segments: US, International Operated Markets, and International Developmental Licensed Markets & Corporate. The US remains its largest market and is approximately 95% franchised.

Page 4 of 12