McDonald's (MCD) Sales Investment Continues, BTIG Reiterates $240 PT

BTIG analyst Peter Saleh reiterated a Buy rating and $240.00 price target on McDonald's (NYSE: MCD) after the company reported mid- to high-single-digit comps across all regions, including a 4.8% increase in the U.S. McDonald’s reported 3Q19 EPS of $2.11, below the consensus of $2.21, as stronger global same-store sales was more than offset by lower franchise profit, higher G&A, lower other operating income (gains on restaurant sales) and a slightly higher tax rate. Global same-store sales increased 5.9% with a 4.8% gain in the U.S., slightly below consensus of 5.1%, driven by the shift to higher price promotions and benefits from EOTF.

The analyst stated "While much investor focus was placed on the higher G&A outlook, we note that franchisees will likely begin contributing for technology like Dynamic Yield that offsets much of the higher G&A while continuing to differentiate McDonald’s".

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 $199.91 yesterday.

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