McDonald's (MCD) Franchisee Checks Come Back Positive, UBS Sees Upside From Here

UBS analyst Dennis Geiger reiterated a Buy rating and $260.00 price target on McDonald's (NYSE: MCD) after franchisee checks suggest continued US comp momentum through 2Q and into 3Q, w/ optimism that strength in underlying trends can largely persist.

The analyst sees further upside from here on continued US strength as the international recovery continues. He stated "We expect a focus on sustainability of go forward US momentum (incl. 2-yr trends) and recovery in the IOM segment, incl. any commentary on delta variant concerns. Investor emphasis is also likely on commodities & wage inflation, which we think could have just a modest impact this yr & next. We expect a global reopening supports a somewhat underappreciated reacceleration in int'l trends in coming quarters, while US momentum likely cont. and appears positioned for a multiyr period of outperformance. We believe MCD should remain a core LT holding as a quality compounder set to further increase global mkt share and accelerate FCF growth."

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 $229.26 yesterday.

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