CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target price to $335 from $290, 26.8x our 2024 EPS, in line with MCD’s five-year average forward P/E of 26.9x. We raise our 2023 EPS estimate to $11.82 from $11.73 and 2024’s to $12.51 from $12.29. After MCD’s investor day, we expect stronger growth in both revenue and profitability for the company. By 2027, MCD aims to expand its store count to approximately 50K (41K as of Q3), with annual system-wide sales expected to reach $45B. The company plans to leverage technologies such as Google Cloud to streamline operations and aims to achieve 30% of sales through delivery orders. MCD’s recent efforts to diversify offerings and cater to evolving consumer preferences are another bright spot, with the McCrispy and Best Burger offerings expected to be available across nearly all of MCD’s markets by 2026. Additionally, the initial positive reception of its new restaurant concept, CosMC, indicates promising potential for more innovative dining experiences within the company’s portfolio.