What Analysts Recommend for Fast Food Stocks after 2Q17 Earnings

Of the four fast food restaurants considered for this analysis, McDonald’s (MCD) has been the most favored stock among analysts. Of the 32 analysts that follow McDonald’s (MCD), 71.9% recommend a “buy,” and 28.1% recommend a “hold.” None of the analysts recommended a “sell.” As of September 28, 2017, analysts are expecting the company’s stock to reach $172.1 in the next 12 months, which represents a return potential of 9.3%.

Of the 11 analysts that follow QSR, 54.5% recommend a “buy,” and 45.5% recommend a “hold.” None of the analysts are favoring a “sell.” Analysts have forecasted a 12-month target price of $62.50 for QSR, which represents a return potential of -2.2%.

Of the 16 analysts that follow Jack in the Box (JACK), 56.3% recommend a “buy,” 37.5% recommend a “hold,” and 6.3% recommend a “sell.” In the next 12 months, analysts are expecting the company’s stock price to reach $11.90, which represents a return potential of 10.8%.

Of the 21 analysts that follow Wendy’s (WEN), 47.6% recommend a “buy,” 47.6% recommend a “hold,” and 4.8% recommend a “sell.” In the next 12 months, analysts are expecting Wendy’s stock price to reach $16.60, which represents a return potential of 16.8%.

If the current stock price is lower than analysts’ target price, it doesn’t mean an automatic “buy.” Investors should carefully analyze various parameters discussed in our earlier articles before making investment decisions.