McDonald's (MCD): Lowering Q2/Q3 EPS Estimates - Nomura
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Rating Summary:
28 Buy, 18 Hold, 1 Sell
Rating Trend: Down
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Up: 0 | Down: 0 | New: 0
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Sluggish U.S. restaurant industry sales trends in the second quarter spurred Nomura analyst, Mark Kalinowski, to lower his Q2 same-store sales forecast for McDonald's (NYSE: MCD) U.S. by -70bp, to +3.0%; -90bp below the +3.9% consensus number.
These trends, coupled with recent adverse currency moves lead him to reduce Q2 and Q3 EPS estimates by -$0.01 each, to $1.39 and $1.49, respectively (each $0.01 below consensus). The full-year 2016 EPS projection goes down by -$0.02, to $5.53 ($0.03 below consensus). Given this lower anticipated base of earnings coming off of this year, he also reduced full-year 2017 EPS by -$0.02, to $6.13 ($0.07 below consensus).
Despite the estimate reductions, he reiterated his Buy rating and $142 price target.
For an analyst ratings summary and ratings history on McDonald's click here. For more ratings news on McDonald's click here.
Shares of McDonald's closed at $121.97 yesterday.
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