McDonald's (MCD): Notes From Management Meeting, Cutting Estimates - Piper Jaffray

August 5, 2016 9:14 AM EDT
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Price: $121.26 +0.67%

Rating Summary:
    12 Buy, 21 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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Piper Jaffray analyst, Nicole Miller Regan, reiterated her Overweight rating on shares of McDonald's (NYSE: MCD) after hosting an investor meeting at McDonald's headquarters with CFO Kevin Ozan and President of U.S. Mike Andres. However, she also cut FY16 estimates on lower 4Q same store sales.

The analyst stated "Domestic margin drivers include cost of goods sold deflation, lower turnover at the crew level, ongoing re-franchising efforts, improved store-level P&L management and lapping prior-year investments (i.e., enhanced benefits). Longer-term, and with a consistent +MSD% comp, high-teens margins may be achieved, where outside of state minimum wage changes no structural impediments exist."

FY16 estimates tick down (on a lower 4Q16 same store sales estimate) and include a +2.8% global comp, 31.4% operating margins, and EPS of $5.55 that compares to consensus of +2.9%, 32.3%, and $5.57

FY16 revenues drop from $24.96B to $24.82B and EPS drops from $5.59 to $5.55 but there is no change to the price target of $140.

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 $118.30 yesterday.



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Analyst Comments, Analyst EPS Change

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Piper Jaffray, Nicole Miller Regan

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