UPDATE: McDonald's (MCD) PT Raised to $276 at Wells Fargo

Wells Fargo analyst Jon Tower raised the price target on McDonald's (NYSE: MCD) to $276.00 (from $269.00) while maintaining a Overweight rating.

The analyst comments "We expect MCD will post low-teens SSS results in the U.S. vs 2019, with in-line numbers enough against the Delta dip in August, and we see room for some upside in IOM results, even with tourism as a bigger seasonal hurdle to overcome in 3Q. That said, we expect greater focus on read-throughs on broader consumer themes: labor/distribution cost pressures (we are below the Street on co margins), lower-income discretionary spending against changing gov't benefits & inflation's outsized impact on the lower income consumer (with wage growth a potentially underappreciated offset), breakfast routines normalizing, and digital engagement post-COVID. We are optimistic that investors will emerge encouraged that MCD's scale and global sales momentum will give the company significant advantages navigating these challenges, and we continue to view the stock's NTM risk-reward as attractive."

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