BTIG Reiterates Neutral Rating on McDonald's (MCD)
BTIG analyst Peter Saleh reiterated a Neutral rating on McDonald's (NYSE: MCD).
The analyst comments "McDonald's generated some worrisome news after the close yesterday with reports of an E. coli outbreak across a handful of Western states, potentially complicating the optimism around returning to positive sales trends. While the incident appears to be more contained than others we have seen in the industry, an expansion of the investigation or sustained publicity is what has the potential to weigh on consumer traffic. We are in a wait and assess mode for the time being, thinking it's premature to start making comparisons to the Chipotle (CMG, Buy, $67 PT) precedent scarred in investors' memories. That incident was driven by repeated outbreaks across the country and continuous news coverage, and other quick-service chains have had localized E. coli outbreaks in recent years with almost no discernible sales impact. We intend to monitor developments and assess if the situation escalates, we remain Neutral on shares at the current time."
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 $314.69 yesterday.