McDonald's (MCD) Launches New Nationally Advertised Value Tier; RBC Capital Reiterates Outperform

RBC Capital reiterates an Outperform rating and $110.00 price target on McDonald's (NYSE: MCD). Analyst David Palmer believes that a return to nationally advertised value will bolster sales this summer. The new nationally advertised value tier (i.e., “Summer Lovin’”) launched this week, and closely resembles one that is believed to have worked well in the New York metro area.

Palmer commented, "We reiterate our Outperform rating and $110 price target on McDonald’s stock. We believe US sales improvement and stabilization of select international markets will anchor a 2H15 recovery and lead to 150+ of ROIC improvement by 2016. We think that signs of a US stabilization will be evident in July—perhaps in time for management commentary on 2Q earnings. Our 2015 and 2016 EPS estimates of $4.79 (-1% YOY) and $5.45 (+14% YOY) remain above consensus of $4.71 and $5.20, respectively."

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 $95.22 yesterday.

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