Deutsche Raises Price Target on McDonald's (MCD) Following 2.5% Upside on November Comps

Deutsche Bank is reaffirming its Buy rating and is raising its price target from $102 to $108 on shares of McDonald's (NYSE: MCD) following the release of November's same store sales.

The company reported SSS increased 7.4 percent in November, trumping the firm's and Street's estimates of 4.8 percent and 4.9 percent. On a segment basis, U.S. and European sales both topped the firm's estimate by 2.5 percent while Asia sales beat by 2.6 percent.

An analyst at Deutsche comments, "All segments were better than expected as the combination of pricing, effective promotions, and remodels drove results. Looking forward, pricing, momentum, and favorable weather compares in Dec set MCD up for another strong month."

To go inline with the company's recent performance, the firm is increasing its Q4:11 and FY12 EPS estimates from $1.26 and $5.61 to $1.29 and $5.65. Comps for the month of December are now expected to be up 6 percent, 1.2 percent higher than Deutsche's previous estimate.

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 $96.92 yesterday.

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