Proactive Investors - McDonald's Corp (NYSE:MCD) stock offers investors “favorable risk-vs-reward”, that’s according to analysts at Deutsche Bank (ETR:DBKGn), who today issued a ‘buy’ note following a recent investor update.
The analysts at the German bank tip the fast-food leader to capture yet more market share with its newly updated strategy.
“We believe the overarching message is that MCD will continue to execute against its Accelerating the Arches strategy while increasingly leveraging digital & technology across all aspects of the organization as well as its global scale in a more holistic one McDonald's way to enhance its competitive moat and continue to gain share globally,” Deutsche analyst Lauren Silberman said in a note.
“MCD outlined expectations to accelerate unit growth to 4-5% over the next four years to reach ~50,000 global locations by 2027, supported by increased contribution from the US & IOM, which will come with higher capex (likely higher than initially expected).
Silberman added: “Overall, the investor update reinforces our positive view on MCD's ability to continue to gain market share and we see MCD as among the best positioned companies to leverage technology to unlock value creation.
“Given MCD’s strong positioning, consistent execution, high earnings visibility and the current backdrop, we believe MCD offers a favorable risk/reward.”
With a ‘buy’ rating and a $313 target price that suggests close to 10% upside to the current price of $286.79.