Latest news with #Redburn
Yahoo
11-06-2025
- Business
- Yahoo
Redburn upgrades Yum! Brands to Buy on international footprint
Redburn Atlantic upgraded Yum! Brands (YUM) to Buy from Neutral with a price target of $177, up from $146. The firm says Yum 'presents one of the most compelling setups' in its coverage. With an international footprint that continues to scale and Taco Bell delivering 'outsized' profit and innovation, Yum 'offers both defensive resilience and offensive optionality,' the analyst tells investors in a research note. Redburn believes the company's digital acceleration, diversified formats and 'strong' master franchise system further strengthen its growth algorithm. Yum's valuation looks attractive relative to its fundamentals, the firm contends. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on YUM: Disclaimer & DisclosureReport an Issue Yum! Brands upgraded to Buy from Neutral at Redburn Atlantic Yum! Brands sues IRS in tax court over $4B tax bill, Bloomberg says Trump says Fed 'must now' lower rates after ADP payrolls report: Morning Buzz Apple downgraded, Snowflake upgraded: Wall Street's top analyst calls Yum! Brands upgraded to Buy from Neutral at Goldman Sachs Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
McDonald's Shares Slip as GLP-1 Risks Spur Rare Sell Rating
(Bloomberg) -- McDonald's Corp. shares slipped on Tuesday after Redburn Atlantic gave the burger chain its sole sell rating, saying shifting consumer patterns due to weight-loss drugs and inflation are cause for concern. Most Read from Bloomberg Shares of McDonald's fell as much as 1.8% to a March low on the downgrade, a two-notch cut from Redburn's previous buy rating. Redburn held a buy rating on the stock since initiating coverage in 2023. As more Americans turn to GLP-1 drugs like Ozempic to lose weight, McDonald's could see as much as a $428 million annual impact to revenue, representing about 1% of system sales, Redburn Atlantic analysts Chris Luyckx and Edward Lewis wrote. 'A 1% drag today could easily build to 10% or more over time, particularly for brands skewed toward lower-income consumers or group occasions.' The analysts also cut the price target on McDonald's to a Street-low $260, implying a more than 13% decline from where the stock closed on Tuesday. Shares have dropped for seven straight days, their longest losing streak in nearly 12 years, after closing just below a record high in mid-May. Redburn's lowered recommendation was just the latest downgrade for the fast-food giant, which was recently knocked down to hold-equivalent ratings at Morgan Stanley, Loop Capital and Erste Group. Analysts remain largely split on the stock, with 22 buy-equivalent ratings, 18 hold-equivalent ratings and an average price target of $332, according to data compiled by Bloomberg. McDonald's US same-stores sales fell 3.6% in the first-quarter of this year, marking the largest decline since 2020 when people were stuck at home during the pandemic. Fast-food restaurants like McDonald's have also seen a decline in traffic in 40 of the past 43 months, according to the analysts. In addition to the McDonald's call, Redburn also launched coverage of Domino's Pizza Inc. with a sell rating, while starting Chipotle Mexican Grill Inc. as a new neutral. YUM! Brands, Inc., which owns popular brands KFC, Taco Bell and Pizza Hut, was raised to buy from neutral given the stock's 'reasonable' valuation. Despite the slump, McDonald's has increased its average transaction amount through pricing, but lower-income consumers are now opting to eat more at home as the price difference between home and restaurant food increases, according to the report.
Yahoo
11-06-2025
- Business
- Yahoo
Redburn Turns Bearish on McDonald's (MCD), Domino's (DPZ) Amid GLP-1 Impact Concerns
Redburn Atlantic downgraded McDonald's (MCD, Financials) and launched coverage of Domino's Pizza (DPZ, Financials) with a Sell rating Tuesday, warning that appetite-suppressing weight-loss drugs like GLP-1s could reshape consumer dining habits long term. In a note, the firm said that while structural growth has benefited the sector for years, emerging behavioral shifts and economic fatigue may threaten that momentum. Even a 1% decline in demand today, Redburn warned, could snowball into double-digit erosion over time as GLP-1 use expands. These drugs which reduce appetite and support weight loss may lower not only individual consumption, but also disrupt group dining routines and habitual fast-food behavior, Redburn analysts wrote. McDonald's was downgraded from Buy to Sell on concerns about traffic weakness, rising menu fatigue, and vulnerability to pricing shocks. Redburn also flagged that U.S. consumers may face added pressure from renewed inflation and tariffs, reducing room for further price hikes. The firm gave Domino's a Sell rating on similar concerns, but upgraded Yum! Brands (YUM, Financials) to Buy, citing its international footprint and conservative valuation. Coverage of Chipotle (CMG, Financials) was initiated at Neutral. This article first appeared on GuruFocus.
Yahoo
10-06-2025
- Business
- Yahoo
McDonald's Faces Rare Sell Rating as Inflation, Drug Trends Hit Traffic
McDonald's (NYSE:MCD) took a hit Tuesday after Redburn Atlantic downgraded the fast-food giant to Sell its only such rating on the stock. The firm also slashed its price target to $260, about 15% below Monday's close, sending shares briefly below $300 during the session. The call marks a two-notch downgrade from a previous Buy rating, and it reflects deeper concerns about changing customer habits, rising inflation, and the growing impact of weight-loss drugs. Redburn analyst Chris Luyckx said medications like Ozempic could shave $428 million off McDonald's annual system sales roughly 1% and that impact may grow. Meanwhile, the U.S. business is already under pressure: same-store sales dropped 3.6% in Q1, the biggest slide since 2020, and fast-food traffic has declined in 40 of the past 43 months. Even with higher prices and larger average orders, McDonald's may be pricing out its lower-income customer base. Luyckx argued that while the chain typically performs well during downturns, recent price hikes could be damaging its long-held image as an affordable option. Despite the concerns, McDonald's stock is still up 5% this year. But the analyst warned that growth could stall unless the company updates its menu and offers better value. The downgrade extends the stock's losing streak to six days, down from a high above $326 per share in mid-May. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
McDonald's Faces Rare Sell Rating as Inflation, Drug Trends Hit Traffic
McDonald's (NYSE:MCD) took a hit Tuesday after Redburn Atlantic downgraded the fast-food giant to Sell its only such rating on the stock. The firm also slashed its price target to $260, about 15% below Monday's close, sending shares briefly below $300 during the session. The call marks a two-notch downgrade from a previous Buy rating, and it reflects deeper concerns about changing customer habits, rising inflation, and the growing impact of weight-loss drugs. Redburn analyst Chris Luyckx said medications like Ozempic could shave $428 million off McDonald's annual system sales roughly 1% and that impact may grow. Meanwhile, the U.S. business is already under pressure: same-store sales dropped 3.6% in Q1, the biggest slide since 2020, and fast-food traffic has declined in 40 of the past 43 months. Even with higher prices and larger average orders, McDonald's may be pricing out its lower-income customer base. Luyckx argued that while the chain typically performs well during downturns, recent price hikes could be damaging its long-held image as an affordable option. Despite the concerns, McDonald's stock is still up 5% this year. But the analyst warned that growth could stall unless the company updates its menu and offers better value. The downgrade extends the stock's losing streak to six days, down from a high above $326 per share in mid-May. This article first appeared on GuruFocus. Sign in to access your portfolio
