2023-04-10 08:57:27 ET
McDonald’s Corporation ( NYSE: MCD ) stock edged higher on Monday as Northcoast Research took a positive view of the company’s latest cost-cutting actions.
The measures, which included the layoff of hundreds of white-collar workers, are expected to improve profitability and aid the centralization of operations. The firm’s analysis also sees upside to margin expectations as the company invests in labor productivity and more workers become available amid layoffs elsewhere. Channel checks also suggest strong performance in sales year to date.
The team hiked their rating on the stock to Buy from Neutral and assigned the fast food operator a $321 price target. Shares of McDonald’s rose 0.4% in premarket trading on Monday.
Read more on the company’s novel virtual layoff strategy .
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McDonald’s upgraded to Buy at Northcoast Research on cost controls