Street View: McDonald's turnaround remains a work in progress
MCD•Broker views on the turnaround
Morgan Stanley ("equal weight," PT: $319) says while MCD has outlined measures to improve execution in the U.S. and navigate leadership changes, "it continues to be a show-me story"
TD Cowen ("hold," PT: $300) says "the inflection point in sales is expected to take time while MCD continues to prioritize value that we argue has predominantly shown to be noise rather than incremental over the last two years"
BTIG ("buy," PT: $350) expects a strategic shift to fewer limited-time promotions, clearing the path for more advertising dollars to support the value and beverage platforms
Citigroup ("buy," PT: $345) says better franchisee support for value initiatives, a ramp-up in digital deals and leadership changes should help improve weak comparable-sales trends by the end of Q3.
McDonald's misses U.S. sales growth expectations
McDonald's MCD.N missed U.S. sales growth expectations for Q2, saying execution lapses blunted its value push targeted at lower-income consumers who have cut restaurant spending.
Median PT of 37 brokerages covering the stock is $320 - LSEG data.
