McDonald's (MCD) PT Lowered to $300 at Morgan Stanley

Morgan Stanley analyst John Glass lowered the price target on McDonald's (NYSE: MCD) to $300.00 (from $312.00) while maintaining a Overweight rating.

The analyst commented: "MCD for the past several months has been among the most discussed in our coverage, so we've chosen to preview it first heading into what's likely to be a downbeat 2Q earnings season. Incremental views have been negative, with pessimism on the company's ability to reassert a value advantage. High frequency data would suggest the $5 meal launched June 25 hasn't had much initial impact, and the problem in the broader sector right now, carrying over to stock performance, is that despite a lot being thrown at consumers, it doesn't seem to be catalyzing demand that has been in a rut, at least based on data outsiders can observe. We're not going to gloss over soft near term trends and are marking our MCD numbers lower here for 2Q and 3Q, and a bit over 2% lower for the year (FX, SSS, units, RLM mainly), with still perhaps some risk and debate around 2H trends, and our PT lowered to $300. We think a potential miss is well understood at this point and 2Q comments may not offer much solace."

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