Deutsche Bank Maintains a 'Buy' on McDonald's (MCD); May Preview: Why Momentum Should Continue, Despite Headwinds

Deutsche Bank maintains a 'Buy' on McDonald's (NYSE: MCD), PT $89.

Deutsche analyst says, "We're modeling global SSS at +3.7% vs. consensus +3.8% (per Consensus Metrix), last yr +4.8% and April 2011 +6.0%. We expect MCD to post another solid month globally, supported by a wide range of traffic and checkbuilding initiatives, along with strategic asset reinvestment. However, the trading day (TD) will weigh on results this month, acting as a -1.0% drag globally in May vs. 0.9% benefit in Apr. Our underlying global SSS forecast for May is +4.7% vs. +5.1% in Apr, when adj for TD. Maintain Buy on healthy comps, low sensitivity to commodity inflation, and attractive valuation (15.3x NTM P/E vs. restaurant industry at 19.3x)."

For more ratings news on McDonald's click here and for the rating history of McDonald's click here.

Shares of McDonald's closed at $80.70 yesterday.

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