UPDATE: Guggenheim Starts McDonald's (MCD) at Buy, Best Idea
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Guggenheim analyst Gregory Francfort initiates coverage on McDonald's (NYSE: MCD) with a Buy rating and a price target of $270.00.
The analyst comments "McDonald’s is the largest quick service operator in the U.S. and the world with $110bn in global system sales projected (by us) this year. Roughly $1 out of every $20 in the U.S. that is spent on food away from home (not at a grocery store) is spent at a McDonald’s. The segment mix of 2020 system sales among the U.S./International Developed Markets/International Operated Markets were 43%/33%/24% with EBITDA at 52%/45%/3%. Int’l Developed Markets are primarily driven by five countries – U.K., France, Germany, Australia and Canada, where the company ownership is 5-15% of the stores, vs. 5% in the U.S. and 2% in the IDL markets. Global unit growth was running in the low 2% pre-Covid with mid single digit SSS that was driving 5-7% EBITDA growth."
Shares of McDonald's closed at $242.96 yesterday.
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