McDonald's (MCD) is slightly higher in Tuesday's session after the world's largest foodservice retailer became the latest company to say it is ending certain diversity, equity and inclusion (DEI) goals.
The initiatives McDonald's is ending include representation goals in leadership positions and a pledge that encouraged suppliers to implement DEI strategies and increase minority representation, the company said in a press release.
To come to this decision, McDonald's said it reviewed its inclusion efforts, consulted shareholders, evaluated legal shifts such as the Supreme Court ruling in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College and compared its approach to other companies.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Walmart (WMT), Deere (DE) and Ford Motor (F) are just a few firms that have recently done away with DEI initiatives.
"We will continue to drive business results through all three legs of the McDonald's stool, specifically with our people practices, by fueling economic impact and innovation through our robust supply chain, and by building a franchisee pipeline that thrives in the communities we serve and fuels our growth," the company said in a statement.
Is McDonald's stock a buy, sell or hold?
McDonald's boasts a six-month total return (price change plus dividends) of nearly 18% and analysts think Kiplinger Dividend 15 stock has more room to run.
According to S&P Global Market Intelligence, the average analyst target price for the Dow Jones stock is $322.20, representing implied upside of nearly 10% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Jefferies is one of the more bullish outfits on the blue chip stock with a Buy rating and $345 price target.
"(Our) top pick is MCD, where we see accelerating share wins in the U.S. through 2025 and beyond," wrote Jefferies analyst Andy Barish in a December 16 note. He adds that this will be "driven by low price points and bundle value offerings" as well as "momentum in digital, loyalty, delivery, core menu focus along with limited time offers, and a strong brand and marketing platform.
Over the long term, Barish sees opportunities in margin expansion, free cash flow conversion and accelerating unit growth, all of which should drive MCD stock higher.
Related Content
-
New RMD Rules: Can You Pass This Retirement Distributions Tax Quiz?Quiz Take our RMD quiz to test your retirement tax knowledge. Learn about RMD rules, IRS deadlines, and tax penalties that could shrink your savings.
-
I'm 61 and need $50,000 for home repairs. Should I borrow given today's rates or take a withdrawal from my $950,000 401(k)?We asked financial experts for advice.
-
Headed for the Retirement Red Zone? This Eight-Step Game Plan Helps to Avoid FumblesThese strategies help safeguard your nest egg and ensure long-term financial success during the five years before retirement and the five years after.
-
I'm a Financial Planner: This Is How You Can Get Started With RMDsThe IRS will come knocking for its share of your tax-deferred retirement savings when you hit 73, but planning ahead for RMDs will ensure you're ready.
-
How Will You Replace Your Paycheck in Retirement? A Financial Adviser's Tips on Income PlanningBills don't stop once you retire — and you can't expect your Social Security checks to cover them all. Don't risk running out of money. Instead, make a plan.
-
From Pets to Paintings: The Little Things That Can Cause Big Estate TroubleSentimental items might have little monetary value, but their disposition can cause hurt feelings. Talking about who wants what and labeling items can help.
-
The Clock Is Ticking: Take Advantage of These Retirement Tax Benefits While They LastRecent tax changes, including an extra $6,000 deduction for those 65 and older, present a golden opportunity for retirees to reduce their tax bills.
-
I'm a Financial Adviser: This Is Why Unmarried Same-Sex Couples Need an Estate PlanWhen illness or death occurs within an unmarried same-sex partnership, family members can step in and push the surviving partner out. An estate plan is vital.
-
Stocks Bounce But End With Big Weekly Losses: Stock Market TodayThe stock market rout continued on Friday, but a late-day burst of buying power brought the main indexes off their session lows.
-
Costco Gold Bars Keep Selling Out. Are They a Smart Investment?How Costco's bullion program works, how to get the best deal and whether it makes sense for investors.
