<p>Wells Fargo upgraded <strong>McDonald’s Corp</strong> <strong>(NYSE:MCD) </strong>to "overweight" from "equal weight" earlier, highlighting the <strong><a href="https://www.schaeffersresearch.com/content/news/2023/07/27/quarterly-win-draws-options-traders-to-mcdonalds-stock" target="_blank">fast food giant'</a>s </strong>affordable food items, menu innovation, and digital strength. The analyst added McDonald’s is "best positioned to weather a storm" from higher interest rates, rising gas prices, and resuming student loan payments.</p>
<p>Analysts were already bullish toward MCD coming into today, with 20 of the 28 in question sporting a "buy" or better. Echoing this, the 12-month consensus target price of $328.59 is an 18.6% premium to current levels.</p>
<p>The equity was last seen up 0.9% at $277.80, but is still trading firmly below most moving averages after pulling back from its July 21, all-time high of $299.35. Year-to-date, shares are up 5.8%.</p>
<p>Options bulls are chiming in, with 4,822 calls across the tape so far, which is double the volume that is typically seen at this point. Most popular is the weekly 9/8 280-strike call, where new positions are being opened.</p>
<p>These traders are in luck, as the security’s Schaeffer’s Volatility Index (SVI) of 14% stands higher than just 18% of readings from the past year, implying options players are pricing in low volatility expectations. </p>
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Analyst: This Blue Chip Is Ready to 'Weather a Storm'
