McDonald's (MCD) PT Raised to $280 at Jefferies As Dining Rooms Reopening More than Offsets DriveThru Normalization
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Jefferies analyst Andy Barish raised the price target on McDonald's (NYSE: MCD) to $280.00 (from $272.00) after the company reported 2Q SSS of 26% (2Y 15%) just ahead of the consensus 24.4% with double-digit positive comps in all dayparts on a 2Y stack. Management noted that 70% of all dining rooms are now open and the company is targeting ~100% by Labor Day. Reopenings have yielded immediate sales lifts, and take a bit of pressure off drive-thrus seeing some nt slowdown given Rewards.
The analyst reiterated the Buy rating, stating "Solid 2Q with US SSS & margins continuing to outperform, although the latter likely to moderate in 2H with labor and avg check headwinds, and Europe (IOM) recovery moving forward well given economies reopening. FY21 guide unchanged besides higher systemwide sales growth, and we raise our SSS & margin ests in '21/22. We think MCD is poised for a long period of strength and stock attractive at <17x '22 EV/EBITDA".
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