McDonald's (MCD) is a Defensible Play Confirmed by Franchisee Discussions - UBS

UBS analyst Dennis Geiger reiterated a Buy rating and $290.00 price target on McDonald's (NYSE: MCD) citing the company as a defensible play as spending pressures consumers to "trade down".

The analyst stated "we view MCD as well positioned vs. peers if spending is pressured. MCD should be a trade down beneficiary in the sector, reflecting its value proposition & outperformance during recessions, incl. '07-'09 when sss avg ~4% in the US & ~7% in Europe. And ongoing momentum should support resilience." Feedback from sales channel has been strong as well with the analyst commenting "Our latest franchisee discussions suggest largely intact momentum & cont. optimism in outlook. Select drivers of US sales in 2H should incl: 1) Focus on chicken, 2) enhanced marketing, 3) digital (30% of sales in top 6 mkts), delivery & loyalty (~26MM+ US members); and 4) national & local value offers."

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 $248.07 yesterday.

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