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Janney Montgomery Scott Initiates Coverage on McDonald's (MCD) with a Neutral; Favorable Characteristics, Not Enough To Warrant Buy Rating

November 4, 2009 9:16 AM EST
MCD Hot Sheet
Rating Summary:
    7 Buy, 7 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Janney Montgomery Scott initiates coverage on McDonald's (NYSE: MCD) with a Neutral. Price target $62.

Janney analyst says, "Although there are some favorable characteristics about investing in McDonald's at present such as above-average same-store sales growth out of the company's 6,700+ restaurant base in Europe our view is that current risks balance out the potential positives. Our EPS estimates for 2009, 2010, and 2011 are $3.96, $4.42, and $4.75, respectively. These latter two projections are two cents ahead of First Call consensus...We look for McDonald's to continue gaining market share within the U.S. limited-service hamburger sub-segment...There could be some upside to our 2010 projection of +2.0% same-store sales expansion for McDonald''s Europe...Although these P/E multiples lie toward the low end of McDonald's historical range, they are not compelling enough at present to warrant a Buy rating, in our view."

To see more analyst ratings on MCD Click Here.

McDonald's Corporation, together with its subsidiaries, franchises and operates McDonald's restaurants in the food service industry worldwide.

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