Compelling McDonald's (MCD) Value Platform Should Support Continued Momentum - UBS

Reports out today indicate McDonald's (NYSE: MCD) franchisees have agreed to a new McPick 2 for $2 value platform expected to launch in Jan. The new value promo provides customers the choice to pick any 2 items from a menu of 4 options, incl.: 1) the McDouble, 2) McChicken, 3) small Fries and 4) mozzarella sticks, for $2.

The promo is expected to initially run for about 5 weeks from 1/4 - 2/8, and then regional markets will have the option to extend the deal.

UBS believes the announcement of a new permanent value plan was one of the most important topics that needed to be addressed at the 11/10 investor meeting, & today's announcement well positions MCD w/ a compelling promo against an increasingly competitive and promotional peer set.

No change to the Buy rating or the $125 price target which reflects 13x UBS estimated EBITDA 12 mos from now.

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 $111.06 yesterday.

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