Morgan Stanley Sees McDonald's (MCD) Results as Good Enough, 5 Takeaways

January 29, 2021 7:30 AM EST
Get Alerts MCD Hot Sheet
Price: $231.48 +0.53%

Rating Summary:
    30 Buy, 15 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 14 | New: 42
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Morgan Stanley analyst John Glass reiterated an Overweight rating and $248.00 price target on McDonald's (NYSE: MCD) after the top line trend continued to improve globally while International markets were not as bad as expected. Margins missed but mostly due to Covid & related costs. Key takeaways inlcude:

1) US same store sales of 5.5% were mostly in line with estimates,

2) The IOMs performed better than expected

3) 4Q margins of 37.7% missed, primarily due to the IOM margins while G&A was elevated due to some one time costs

4) High level guidance was mostly in line with comments at the Nov investor day

5) Upcoming Catalysts include: the re-opening, a new sandwich to complement spicy nuggets in Feb, the roll-out of the MyMcDonalds digital platform (rewards, MOP, in-app delivery and deals all in
one place)

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 $206.49 yesterday.

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