The E. coli outbreak that sickened dozens and international pressures will create near-term headwinds for McDonald’s, UBS analysts say in a research note. However, they predict trends will strengthen in the new year, thanks to new menu items, continued promotions and increased marketing. Same-store sales in 3Q and initial October trends show that the restaurant chain’s momentum was improving, prior to the recent food-safety incident. And while macroeconomic challenges persist overseas, the company is either gaining share or notching improvements in trends across all major markets. Analysts raise their price target to $345 and maintain their buy rating.

McDonald’s logged a small gain in U.S. comparable sales during 3Q as it pulled in slightly fewer orders year-over-year but guests spent more on average with each order. The fast-food chain says effective value marketing of its core menu and growth in digital sales and delivery contributed to the 0.3% U.S. comparable sales increase. But analysts had been targeting a 0.7% gain, according to FactSet, thinking that the chain would outperform its U.S. competitors in a tight spending environment for eating out. McDonald’s slides 2.3% to $290.01 premarket.

McDonald’s recorded fewer comparable sales for 3Q due to shortfalls in its international markets that were worse than Wall Street had anticipated. Comps in the fast-food chain’s international operated markets were down 2.1%, led by poor sales in France and the U.K. The company’s international developmental licensed markets saw comps drop 3.5% due to the war in the Middle East and weakening sales in China, which more than offset growth in Latin America. Analysts had been expecting comps in both market groups to slip just 1.2%, according to FactSet. Investors had been bracing for some weakness overseas after Domino’s Pizza recently missed 3Q international sales projections.

McDonald’s says that families and lower-income customers continue to feel pinched across many global markets, making for a challenging environment for fast-food. McDonald’s is pushing its international franchisees to offer more value options, and expects to stay conservative with any price increases. “Consumers are certainly remaining resistant to pricing,” McDonald’s CFO Ian Borden says during an earnings call.