Earnings Spotlight: Canaccord Analyst Remains Sidelined on McDonald’s Corporation
In a research report issued this morning, Canaccord analyst Lynne Collier reiterated a Hold rating on shares of McDonald’s Corporation (NYSE:MCD) with a price target of $122, after the fast-food chain released its fourth-quarter results, posting modest EPS beat of $1.44, compared to Street estimates at $1.41. McDonald’s shares are currently trading at $121.88, down $0.38 or -0.31%.
Collier noted, “The global comp far exceeded estimates (+3.8% vs +1.4% Street) driven predominately by high-growth and foundational markets. U.S. comps came in just above the Street (-1.3% vs -1.4%) and modestly above our estimate of -2.0%, as the market lapped the introduction of its strong All-Day Breakfast (ADB) campaign. International lead markets also slightly beat Street estimates (+2.8% vs. +2.6%). While no specific guidance was given, we note that MCD management provided cautious commentary on U.S. comps in Q1 (lapping +5.4%) given unfavorable weather, the leap year in ’16 and the continued lap of ADB. The next catalyst for the stock will be the introduction of McDonald’s 2017 outlook on March 1 at an investor event.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Lynne Collier has a yearly average return of 11% and a 70% success rate. Collier has a 6.2% average return when recommending MCD, and is ranked #475 out of 4361 analysts.
Out of the 26 analysts polled by TipRanks, 12 rate McDonald’s Corporation stock a Buy, 13 rate the stock a Hold and 1 recommends Sell. With a return potential of 8%, the stock’s consensus target price stands at $130.18.