L'intérêt à découvert pour Smartstop Self Storage donne aux investisseurs une idée du degré auquel les investisseurs parient sur la baisse de l'action de Smartstop Self Storage. Les données sur l'intérêt à découvert sont mises à jour toutes les deux semaines.

Smartstop Self Storage (NYSE:SMA) Stock, Rapport sur les intérêts à découvert

Smartstop Self Storage

Smartstop Self Storage REIT Inc operates as a real estate investment trust. The trust owns, acquires, and operates self-storage properties. It operates in two segments namely, self-storage operations which generates key revenue, and managed REIT platform business. The investment objective is to focus on investing in self-storage facilities and related self-storage real estate investments that are expected to support sustainable stockholder distributions over the long term.

Symmetry Medical Inc

SmartStop Self Storage REIT, Inc. Common Stock

Smartstop Self Storage REIT Inc

SMA Alliance Inc

Soma Gold Corp

SUMMIT BANCSHS CALIF by Summit Bancshares, Inc.

Summit Bancshares, Inc.

SMAN CAPITAL TRUST I by SMAN Capital Trust I

Sman Capital Trust I

Amplify ETF Trust Amplify Small-Mid Cap Equity ETF

SPORTSMAP TECH ACQUISITION CORP UNIT 1 COM & 3/4 WT EXP

SMARTSHEET INC CL A

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SOMATIC SYSTEMS INC by Somatic Systems, Inc.

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iShares Trust iShares Large Cap Max Buffer Sep ETF

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SIMEC ATLANTIS ENERGY LTD by Simec Atlantis Energy Ltd.

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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul class="wp-block-list">
<li>Baird raised Adobe Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADBE#NASDAQ">ADBE</a>) price target from $410 to $425. Baird analyst Rob Oliver maintained a Neutral rating. Adobe shares closed at $391.68 on Friday. See how other analysts <a href="https://www.benzinga.com/quote/ADBE/analyst-ratings">view this stock</a>.</li>
<li>Loop Capital increased the price target for Ulta Beauty, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ULTA#NASDAQ">ULTA</a>) from $480 to $510. Loop Capital analyst Anthony Chukumba maintained a Buy rating. Ulta Beauty shares closed at $459.17 on Friday. <a href="https://www.benzinga.com/quote/ULTA/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Keybanc raised SmartStop Self Storage REIT, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) price target from $38 to $40. Keybanc analyst Todd Thomas maintained an Overweight rating. SmartStop Self Storage shares closed at $35.69 on Friday. <a href="https://www.benzinga.com/quote/SMA/analyst-ratings">See how other analysts view this stock.</a></li>
<li>JP Morgan slashed the price target for Abercrombie &amp; Fitch Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANF#NYSE">ANF</a>) from $147 to $141. JP Morgan analyst Matthew Boss maintained an Overweight rating. Abercrombie &amp; Fitch shares closed at $74.66 on Friday. <a href="https://www.benzinga.com/quote/ANF/analyst-ratings">See how other analysts view this stock.</a></li>
<li>JP Morgan raised the price target for Accenture plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>) from $349 to $353. JP Morgan analyst Tien-Tsin Huang maintained an Overweight rating. Accenture shares closed at $311.71 on Friday. See how other analysts <a href="https://www.benzinga.com/quote/ACN/analyst-ratings">view this stock</a>.</li>
<li>DA Davidson increased Nebius Group N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NBIS#NASDAQ">NBIS</a>) price target from $50 to $55. DA Davidson analyst Alex Platt maintained a Buy rating. Nebius Group shares settled at $47.13 on Friday. <a href="https://www.benzinga.com/quote/NBIS/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Wells Fargo raised Wix.com Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WIX#NASDAQ">WIX</a>) price target from $173 to $216. Wells Fargo analyst Alec Brondolo upgraded the stock from Equal-Weight to Overweight. Wix.com shares closed at $149.10 on Friday. <a href="https://www.benzinga.com/quote/WIX/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Scotiabank increased Freeport-McMoRan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCX#NYSE">FCX</a>) price target from $43 to $48. Scotiabank analyst Orest Wowkodaw upgraded the stock from Sector Perform to Sector Outperform. Freeport-McMoRan shares closed at $40.94 on Friday.  <a href="https://www.benzinga.com/quote/FCX/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Jefferies cut the price target for Packaging Corporation of America (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PKG#NYSE">PKG</a>) from $245 to $205. Jefferies analyst Philip Ng downgraded the stock from Buy to Hold. Packaging Corporation shares settled at $188.57 on Friday. <a href="https://www.benzinga.com/quote/PKG/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>HC Wainwright &amp; Co. cut BioNTech SE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNTX#NASDAQ">BNTX</a>) price target from $145 to $138. HC Wainwright &amp; Co. analyst Robert Burns maintained a Buy rating. BioNTech shares closed at $106.57 on Friday. <a href="https://www.benzinga.com/quote/BNTX/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
Considering buying ADBE stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><a href="https://www.benzinga.com/quote/adbe/analyst-ratings"><img loading="lazy" decoding="async" width="1024" height="589" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/16100814/image-245-1024x589.png" alt="" class="wp-image-950870" style="width:647px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/16100814/image-245-1024x589.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/16100814/image-245-300x173.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/16100814/image-245-768x442.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/16100814/image-245.png 1131w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
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Price Target

Markets

Analyst Ratings

Trading Ideas

ADBE

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Accenture To Rally More Than 13%? Here Are 10 Top Analyst Forecasts For Monday

In the preceding three months, 8 analysts have released ratings for Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>), presenting a wide array of perspectives from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">6</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">2</td>
<td align="right">5</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
The 12-month price targets, analyzed by analysts, offer insights with an average target of $38.5, a high estimate of $40.00, and a low estimate of $36.00. Witnessing a positive shift, the current average has risen by 1.32% from the previous average price target of $38.00.
<img src="https://www.benzinga.com/files/images/story/2025/1750082488_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The perception of Smartstop Self Storage by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Todd Thomas</td>
<td>Keybanc</td>
<td>Raises</td>
<td>Overweight</td>
<td>$40.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Wesley Golladay</td>
<td>Baird</td>
<td>Raises</td>
<td>Outperform</td>
<td>$40.00</td>
<td>$38.00</td>
</tr>
<tr>
<td>Simon Yarmak</td>
<td>Stifel</td>
<td>Announces</td>
<td>Buy</td>
<td>$40.00</td>
<td>-</td>
</tr>
<tr>
<td>Eric Luebchow</td>
<td>Wells Fargo</td>
<td>Announces</td>
<td>Overweight</td>
<td>$38.00</td>
<td>-</td>
</tr>
<tr>
<td>Ki Bin Kim</td>
<td>Truist Securities</td>
<td>Announces</td>
<td>Buy</td>
<td>$38.00</td>
<td>-</td>
</tr>
<tr>
<td>Wesley Golladay</td>
<td>Baird</td>
<td>Announces</td>
<td>Outperform</td>
<td>$38.00</td>
<td>-</td>
</tr>
<tr>
<td>Todd Thomas</td>
<td>Keybanc</td>
<td>Announces</td>
<td>Overweight</td>
<td>$38.00</td>
<td>-</td>
</tr>
<tr>
<td>Michael Mueller</td>
<td>JP Morgan</td>
<td>Announces</td>
<td>Overweight</td>
<td>$36.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Smartstop Self Storage. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Smartstop Self Storage compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Smartstop Self Storage's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Smartstop Self Storage's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/SMA/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on Smartstop Self Storage analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">you can start by tracking it here</a>.
<h2>All You Need to Know About Smartstop Self Storage</h2>
Smartstop Self Storage REIT Inc operates as a real estate investment trust. The trust owns, acquires, and operates self-storage properties. It operates in two segments namely, self-storage operations which generates key revenue, and managed REIT platform business. The investment objective is to focus on investing in self-storage facilities and related self-storage real estate investments that are expected to support sustainable stockholder distributions over the long term.
<h3>Understanding the Numbers: Smartstop Self Storage's Finances</h3>
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3M period, Smartstop Self Storage showcased positive performance, achieving a revenue growth rate of 14.74% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.
Net Margin: Smartstop Self Storage's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -12.84%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Smartstop Self Storage's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.22%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Smartstop Self Storage's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.4%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Smartstop Self Storage's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.82, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
<h2>How Are Analyst Ratings Determined?</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Deep Dive Into Smartstop Self Storage Stock: Analyst Perspectives (8 Ratings)

Keybanc analyst Todd Thomas maintains Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) with a Overweight and raises the price target from $38 to $40.

Keybanc Maintains Overweight on Smartstop Self Storage, Raises Price Target to $40

Reported Earlier, SmartStop Enters Montréal With First Québec Facility, Opening 112,000-Square-Foot Storage Site In Dorval

SmartStop Self Storage REIT To Join Russell 3000 Index After Market Close On June 27

Reported Earlier, SmartStop Expands In Denver MSA With Acquisition Of 600-Unit Lakewood Storage Facility On West Colfax Avenue

Baird analyst Wesley Golladay maintains Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) with a Outperform and raises the price target from $38 to $40.

Baird Maintains Outperform on Smartstop Self Storage, Raises Price Target to $40

Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) reported quarterly earnings of $0.41 per share. This is a 2.5 percent increase over earnings of $0.40 per share from the same period last year. The company reported $65.45 million in sales this quarter. This is a 14.74 percent increase over sales of $57.04 million the same period last year.

Earnings

Smartstop Self Storage Q1 FFO $0.41 Up From $0.40 YoY, Sales $65.45M Up From $57.04M YoY

Stifel analyst Simon Yarmak initiates coverage on Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) with a Buy rating and announces Price Target of $40.

Initiation

Stifel Initiates Coverage On Smartstop Self Storage with Buy Rating, Announces Price Target of $40

Wells Fargo analyst Eric Luebchow initiates coverage on Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) with a Overweight rating and announces Price Target of $38.

Wells Fargo Initiates Coverage On Smartstop Self Storage with Overweight Rating, Announces Price Target of $38

Truist Securities analyst Ki Bin Kim initiates coverage on Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) with a Buy rating and announces Price Target of $38.

Truist Securities Initiates Coverage On Smartstop Self Storage with Buy Rating, Announces Price Target of $38

Top Wall Street analysts initiated coverage on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Canaccord Genuity analyst Edward Nash initiated coverage on Celldex Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLDX#NASDAQ">CLDX</a>) with a Buy rating and announced a price target of $64. Celldex Therapeutics shares closed at $19.57 on Friday. <a href="https://www.benzinga.com/quote/CLDX/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>JP Morgan analyst Michael Mueller initiated coverage on SmartStop Self Storage REIT, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) with an Overweight rating and announced a price target of $36. Smartstop Self Storage shares closed at $33.45 on Friday. <a href="https://www.benzinga.com/quote/SMA/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Barclays analyst Paul Kearney initiated coverage on Kohl&#8217;s Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) with an Underweight rating and announced a price target of $4. Kohl&#8217;s shares closed at $7.06 on Friday. <a href="https://www.benzinga.com/quote/KSS/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Wells Fargo initiated coverage on Zillow Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZG#NASDAQ">ZG</a>) with an Equal-Weight rating and announced a price target of $62. Zillow shares closed at $65.19 on Friday. <a href="https://www.benzinga.com/quote/ZG/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>D. Boral Capital analyst Jason Kolbert initiated coverage on Co-Diagnostics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CODX#NASDAQ">CODX</a>) with a Buy rating and announced a price target of $10. Co-Diagnostics shares closed at $0.35 on Friday.  <a href="https://www.benzinga.com/quote/CODX/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
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<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="591" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/28080117/image-194-1024x591.png" alt="" class="wp-image-890712" style="width:606px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/28080117/image-194-1024x591.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/28080117/image-194-300x173.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/28080117/image-194-768x443.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/04/28080117/image-194.png 1157w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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Pre-Market Outlook

CLDX

CODX

This Kohl's Analyst Begins Coverage On A Bearish Note; Here Are Top 5 Initiations For Monday

Baird analyst Wesley Golladay initiates coverage on Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) with a Outperform rating and announces Price Target of $38.

Baird Initiates Coverage On Smartstop Self Storage with Outperform Rating, Announces Price Target of $38

Keybanc analyst Todd Thomas initiates coverage on Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) with a Overweight rating and announces Price Target of $38.

Keybanc Initiates Coverage On Smartstop Self Storage with Overweight Rating, Announces Price Target of $38

JP Morgan analyst Michael Mueller initiates coverage on Smartstop Self Storage (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMA#NYSE">SMA</a>) with a Overweight rating and announces Price Target of $36.

JP Morgan Initiates Coverage On Smartstop Self Storage with Overweight Rating, Announces Price Target of $36

SmartStop Self Storage Launches Mobile App Across 220 Locations, Offering Biometric Access And Seamless Account Management

Reported Earlier, SmartStop Marks 40th Canadian Site Milestone With New Climate-Controlled Storage Facility In Kelowna, BC

Offerings

SmartStop Self Storage REIT Closes 31.05M Share Offering

IPOs

SmartStop Shares Open For Trade At $32.50/Share

McDonald&#39;s Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mcd#NYSE">MCD</a>)&nbsp;has gained 24.2% in the past three months, outperforming the Zacks <a href="https://www.zacks.com/stocks/industry-rank/industry/retail-restaurants-160">Retail - Restaurants</a> industry, the Zacks <a href="https://www.zacks.com/stocks/industry-rank/sector/retail-wholesale-3">Retail-Wholesale</a> sector and the S&amp;P 500 Index, which rose 20.4%, 10.7% and 7.4%, respectively.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/06/82254.jpg?v=663129858" style="height:292px; width:624px" /> 
Image Source: Zacks Investment Research
The company is benefiting from its focus on enhancing customer experiences through its 4D Growth strategy and increased global franchise units. This, alongside an effective capital allocation strategy, has added to the uptrend, given its focus on maintaining shareholder value. 
MCD stock has also outperformed some major industry players, including Yum! Brands, Inc. YUM, Domino&#39;s Pizza, Inc. DPZ and Wingstop Inc. WING, in the past three months. In the said time frame, YUM and DPZ have rallied 5.9% and 0.5%, respectively, while WING has lost 1.2%.
<h3>Factors Driving MCD Stock</h3>
4D Growth Pillar: McDonald&#39;s continues unraveling new and improved ways to enhance customer experiences and drive growth. One of the company&#39;s primary tools to offer customers a more personalized and convenient experience is the 4D Growth Pillar, wherein 4D stands for Digital, Delivery, Drive Thru and Development. The Digital aspect encompasses the company&#39;s top-tier loyalty program available on its digital platform, which now has more than 150 million 90-day active users in approximately 50 markets globally.&nbsp; It anticipates 90-day active users to reach 250 million and annual loyalty system-wide sales to reach $45 billion by 2027. 
Regarding the Delivery and Drive Thru aspects, the company offers delivery services through McDelivery or third-party delivery providers in about 100 global markets, which represent more than 85% of its restaurants. Considering drive-thrus under the delivery section, the company houses quite a number of drive-thru locations across the globe, with more than 27,000 drive-thru locations globally. With the increase in delivery sales mix over the past few years, mainly in Australia, Canada and the United States, and leveraging its long-term strategic partnerships with delivery providers, the company aims to offer seamless customer experiences. 
Considering the Development aspect, McDonald&#39;s is banking on increased demand patterns globally and increasing its foothold by boosting its presence in existing markets and by entering new ones. The company is planning to open more than 2,100 new restaurants globally in 2024, including 500 openings in the United States and International Operated Markets (IOM) segment and 1,600 (including nearly 1000 in China) inaugurations in the International Developmental Licensed (IDL) market. Furthermore, it aims to open 50,000 restaurants by 2027. 
Franchised Revenues Offer Stability: Among the total restaurants worldwide of McDonald&#39;s, 95% were franchised restaurants as of June 30, 2024. The company operates in three reportable segments, wherein the U.S. segment has about 95% franchised ownership mix, the IOM segment has 89% franchised ownership mix and the IDL segment has 98% franchised ownership mix. 
This asset-light business strategy, having more franchised store units across the world, makes its operations less susceptible to market volatility than the company running its outlets on its own. The diversity in market conditions and regulatory hurdles across different nations would make it difficult for MCD to handle operations. This business strategy will offer it higher profit margins and a stable source of revenues. During the first six months of 2024, about 60.5% of revenues came from franchised restaurants. 
Effective Capital Allocation Strategy: The company follows an effective capital allocation strategy, wherein it aims to utilize its free cash flow in new business opportunities, dividend payouts and share repurchases. MCD&#39;s way of prioritizing shareholder value apart from business investments is encouraging in the industry. 
Maintaining its history of increasing dividend payments for 47 consecutive years, McDonald&#39;s has again announced a hike in its quarterly cash dividend on Sept. 25, 2024. It raised its quarterly dividend by 6% to $1.77 per share ($7.08 per share annually) from $1.67 per share ($6.68 per share annually). The dividend is to be paid on Dec. 16, 2024 to shareholders as of Dec. 2.
<h3>Estimate Trend Favors McDonald&#39;s</h3>
The Zacks Consensus Estimate for MCD&#39;s third-quarter and 2024 earnings per share (ETF:EPS) has trended upward in the past seven days. The uptrend can be witnessed from the chart given below.
EPS Trend
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/d9/82252.jpg?v=159574847" /> 
Image Source: Zacks Investment Research
<h2>MCD Trading Above 50 &amp; 200-Day SMA</h2>
Technical indicators suggest a continued strong performance for McDonald&#39;s. From the graphical representation given below, it can be observed that MCD stock is trading above both the 50-day simple moving average (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sma#NYSE">SMA</a>) and 200-day SMA, signaling a bullish trend. The technical strength underscores positive market sentiment and confidence in MCD&#39;s financial health and prospects.
50 &amp; 200-Day Moving Average
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/32/82255.jpg?v=162340666" /> 
Image Source: Zacks Investment Research
<h2>MCD Trading at a Discount</h2>
McDonald&#39;s is currently trading at a discount compared with the industry peers on a forward 12-month price-to-earnings (P/E) ratio basis. The discounted valuation indicates that despite the recent stock price increase in the past three months, it remains an attractive option for investors looking for a suitable entry point.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/c5/82253.jpg?v=1631045805" /> 
Image Source: Zacks Investment Research
<h2>Hurdles to MCD&#39;s Momentum</h2>
The tailwinds discussed above is helping McDonald&#39;s to move through the ongoing macro challenges and inflationary risks. However, headwinds like soft comparable store sales and high costs and expenses are pulling back the growth prospects to some extent. 
Soft Comps: McDonald&#39;s is facing challenges regarding weaker comparable store sales growth. The company&#39;s comps are hurt mainly due to negative comparable guest counts witnessed in the U.S. market and negative comparable sales in France witnessed under the IOM segment. The international market&#39;s trends are unfavorable since customers are wary of discretionary spending given the ongoing market challenges. 
Under the IDL segment, the continued impact of the war in the Middle East and negative comparable sales in China have resulted in declining comps. For the first six months of 2024, comparable sales under this segment decreased 0.8%. 
High Cost &amp; Expenses: The persisting inflationary pressures are hurting the company&#39;s margins. During the first six months of 2024, the company&#39;s total operating costs and expenses escalated 4% year over year to $7 billion due to increased restaurant and occupancy expenses along with selling, general and administrative expenses. 
The company anticipates operating margin to remain pressurized in the near term with labor inflation expected to be in the high single digits in 2024.
<h2>Is it a Wise Decision to Add MCD to Your Portfolio Now?</h2>
As discussed above, despite the ongoing macro hurdles and inflationary risks, McDonald&#39;s is gaining momentum in this competitive industry through its top-tier business strategies. The core business strategies of the company highlight its aim of delivering enhanced and personalized customer experiences, making strategic investments in growth opportunities and maintaining a consistent shareholder value. 
With the goals set through 2027 and the recent take on the dividend hike, along with increased franchised units, the company seems to be well-positioned to move through the uncertainties and deliver an outperformance in the upcoming period. 
Thus, based on the overall discussion and the trends of technical indicators, it is suggested to the existing investors to hold on to this Zacks Rank #3 (Hold) company&#39;s shares for now, whereas new investors might want to wait for a more favorable entry point given high costs and weaker comparable store sales growth.
<a href="https://www.zacks.com/stock/news/2356040/mcdonald-s-stock-jumps-24-in-3-months-should-you-buy-sell-or-hold?cid=CS-BENZ-FT-analyst_blog|most_popular_stocks-2356040">To read this article on Zacks.com click here.</a>

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