McDonald’s Corp said earlier this week that DoorDash had been selected as its new delivery partner. The move puts an end to an exclusive partnership between McDonald’s and UberEats.
McDonald’s shares closed flat at $213.71 in New York on Wednesday. The stock registered an intraday high at $214.90, or a price level previously tested on July 16th.
Shares of McDonald’s Corporation have risen 20.35% so far in 2019 compared with a 19.05% gain for the benchmark index, S&P 500 (SPX).
In 2018, McDonald’s Corp’s stock went up 3.17%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.
Since 2017, McDonald’s has been using delivery services across the United States provided solely by UberEats. The latter has managed to cover about 64% of McDonald’s US stores.
As part of the tie-up, customers will be able to find McDonald’s menu on DoorDash’s subscription program. Its members are provided with unlimited free delivery, in case their orders are for at least $12.
The partnership with DoorDash is to be launched in Houston, Texas across over 200 McDonald’s restaurants on July 29th.
“Building on the success of McDelivery in the US, we’re excited to make McDelivery accessible to customers on DoorDash, which is available in all 50 states and reaches 80% of Americans, making it even more convenient for our customers to enjoy their favorite McDonald’s menu items on their terms,” Chris Kempczinski, McDonald’s President for the US, said in a statement, cited by CNBC.
Analyst stock price forecast and recommendation
According to CNN Money, the 25 analysts, offering 12-month forecasts regarding McDonald’s Corporation’s stock price, have a median target of $220.00, with a high estimate of $238.00 and a low estimate of $200.00. The median estimate represents a 2.94% upside compared to the closing price of $213.71 on July 17th.
The same media also reported that at least 21 out of 30 surveyed investment analysts had rated McDonald’s Corporation’s stock as “Buy”, while 7 – as “Hold”.