Wells Fargo Raises Price Valuation on McDonald's (MCD) Due to Strengthening Foreign Currencies

Wells Fargo is maintaining its Market Perform rating on shares of McDonald's (NYSE: MCD), but is raising the top end of its valuation range by $1 to $76-$87.

The company released its global May comp sales at 3.1 percent which was relatively inline with the firms estimate of 3.2 percent. The APMEA sector outperformed the firms forecast while the U.S. and European sector came in below expectations.

The firm notes that strong performing countries include France, Russia and the U.K. in Europe, and China and several other markets in Asia.

Due to recent strengthening of foreign currencies, currency translation is now expected to benefit Q2 EPS by $0.09-0.10, up from prior guidance of $0.06-0.07. As a result, Wells Fargo is raising its Q2 EPS estimate from $1.26 to $1.29 and its 2011 estimate from $5.07 to $5.10. The firm is also raising its 2012 estimate from $5.51 to $5.53.

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 $81.14 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• AMD (AMD) to offer senior notes in four parts
• Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)
• UBS Reiterates Buy Rating on Hilton Worldwide (HLT)