Strong Global Execution On Display
- May 6, 2019
Analysts reiterate perform rating for McDonald's
McDonald's sales momentum was highlighted in the first quarter with a +5.4% global comparison, outpacing the Street's +3.5% forecast. Same store sales in the closely monitored U.S. market were +4.5% (beating expectations by 150 basis points) despite negative traffic as meaningful average check gains continued.
The analyst team now models global sales trends for the rest of '19 to mirror the strength experienced in the first quarter, but margin headwinds and idiosyncratic earnings issues keep earning per share estimates basically unchanged. This, coupled with an already very healthy valuation, keeps McDonald's at a Perform rating.
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