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McDonald's (MCD) in the Early Days of Accelerated Growth in Europe - BMO Capital

August 16, 2022 12:00 PM EDT
Get Alerts MCD Hot Sheet
Price: $234.40 -1.07%

Rating Summary:
    29 Buy, 16 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 11 | New: 34
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BMO Capital Markets analyst Andrew Strelzik maintained an Outperform rating and upped the firm's price target on McDonald's (NYSE: MCD to $300 per share in a note to clients Tuesday.

The analyst told investors that they believe McDonald's is in the early days of realizing accelerated growth and share gains in Europe as the "pandemic propelled improvements in MCD's competitive positioning in
these key IOM markets."

"We first outlined this opportunity in our mid-2020 deep dive," said Strelzik. "With two additional years of data in this report, 1) MCD's progress is evident, and 2) we see ample runway for MCD to continue capturing stronger performance in Europe into the future. We view this as supportive of MCD's long-term growth outlook."

Strelzik feels the fast food giant is benefiting in Europe, and ample runway remains for accelerated performance based on a review of additional data.

"Restaurant transactions still well off pre-pandemic levels, supporting further opportunity. Total restaurant transactions in 2021 across MCD's top 10 Europe markets in IOM segment remained ~20% below pre-COVID levels. 2022 likely marked further recovery, but still well below 2019 similar to US," concluded the analyst.

By Sam Boughedda



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