Barclays Suggests Buying McDonald's (MCD) on Weakness; New CEO Keeps Company in Good Hands

Barclays maintains an 'Overweight' on McDonald's (NYSE: MCD) price target of $103.00.

Analyst, Jeffrey A. Bernstein, said, "While timing of the release caught us off guard, the news of Skinner's retirement is not surprising, and the choice of the new CEO well telegraphed, with Thompson a highly regarded and proven leader promoted through the MCD ranks and hand selected for the post."

"The news comes at an interesting time for the brand... 1) in the midst of an improving US macro, with investors opting for more discretionary names over more defensive QSRs, and 2) with recent European comp weakness. Importantly, we do not believe the announcement reflects any fundamental change in trend, and we are therefore buyers on any pullback...we continue to view it as a defensive flight to quality."

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 $96.72 yesterday.

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