- UBS tips that momentum is accelerating for McDonald's (MCD +1.0%).
- Analyst Dennis Geiger: "We're raising our estimates again to reflect recent franchisee checks for even better than expected results. Our 3Q and 4Q US sss each go to 5%, and we're raising our PT to $230 to reflect higher EPS ests. and an expanded multiple given stronger sales & market share gain potential. While NT focus likely remains on the impressive sales, we expect focus eventually shifts to coming yrs EPS and FCF potential. 2021 G&A & capex could be an increased focus as investors assess next yr’s earnings power."
- Geiger thinks a capex step-down by MCD and free cash flow increase by 2022 will be compelling and support share price.
- UBS lifts its price target on Neutral-rated McDonald's to $230. The average Wall Street price target is $219.27.