McDonald’s
is poised to win, even as the quick service restaurant landscape gets pressured, one analyst team argued.
Wells Fargo analysts upgraded shares of
McDonald
‘s (ticker: MCD) to Overweight from Equal Weight, raised earnings estimates, and maintained their price target of $310 in a Thursday report.
McDonald’s shares were rising 0.9% to $277.99 in premarket trading. Coming into Thursday’s session, the stock has gained 5% this year.
Consumers will have a few forces battling for their dollars, namely rising interest rates, gas prices and soon, student loan payments, analysts noted. “As broader Quick Service Restaurant trends slow, we expect MCD to stand tall via innovation tailwinds, digital initiatives and flight to value,” they wrote.
With the stock having drawn back lately, analysts see an opportunity to snap up shares of “a best in class operator” with margin potential and unit growth acceleration, among other positives.
In July, the company posted better-than expected second-quarter earnings and sales, but management spoke cautiously about the macro environment this year.
Write to Emily Dattilo at [email protected]
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