Loop Capital Reiterates Buy Rating on McDonald's (MCD)

Loop Capital analyst Alton Stump reiterated a Buy rating and $342.00 price target on McDonald's (NYSE: MCD).

The analyst comments "Our latest McDonald’s U.S. franchisee checks indicate same-store sales growth is tracking ahead of expectations to date in 3Q. We completed our latest round of checks with U.S. franchisees for McDonald’s. Per our contacts, same-store sales recovered to 1.5-2.0% growth to date in 3Q24 and are therefore tracking above our prior full-3Q estimate for a flat performance as well as consensus at down 0.6%. On a 2-year stacked basis 1.5-2.0% growth QTD equates to a gain of 9.6-10.1%, flat to up modestly versus MCD’s reported 2-year stacks of 9.6% in 2Q24. However, implied 3-year stacks of 15.7-16.2% represents a meaningful acceleration from MCD’s reported 3-year stacks of 13.3% in 2Q. We are maintaining our BUY rating and PT of $342 on MCD, based on 18x our 2025 EV/EBITDA estimate."

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Shares of McDonald's closed at $291.29 yesterday.

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