Piper Jaffray Still Bullish on McDonald's (MCD) Following Strong July Comps

Analysts at Piper Jaffray maintain an Overweight rating and $90 price target on McDonald's Corporation (NYSE: MCD) shares today following better-than-expected July comps reported early this morning.

The firm's July comps estimate was for a 4% rise, which was well below the 7% rise the company reported. "Given that our proprietary analysis suggested lunch trends were positive, in the flat to up 1% range, we now know same-store sales benefited more-than-expected from breakfast, beverage and overall mix shift."

Piper Jaffray also said it likes:

• continued industry-leading and stable same-store sales trends
  
• accelerated global expansion (outside of the U.S.)
  
• its never-ending remodel program
  
• opportunistic pursuit of refranchising opportunities

The firm increased its Q3 EPS estimate on MCD from $1.21 to $1.23. The Street is looking for Q3 EPS of $1.23.

Shares of McDonald's have risen 1.6% to $72.88 today.

McDonald’s Corporation, together with its subsidiaries, operates as a worldwide food service retailer.

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