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McDonald’s Corp MCD Thursday reported its third-quarter results. The restaurant chain’s earnings of $2.68 per share beat Street expectations, although revenues declined on a year-on-year basis.
Stephens On McDonald’s
Analyst Joshua Long maintained an Overweight rating with a price target of $280.
“McDonald’s reported 3Q22 global same-store sales growth of +9.5% vs. our/Street estimates of +6.9%/+6.1%,” Long said in the note. The company’s US same-store sales growth of 6.1% was also significantly higher than expected, he mentioned.
McDonald’s total revenues declined due to the closure of its Russia business, the analyst stated.
“Despite ongoing inflation, restaurant profit margins of 16.2% compared to our/Street estimates of 16.2%/16.3%,” he added.
Check out other analyst stock ratings.
Cowen On McDonald’s
Analyst Andrew Charles maintained an Outperform rating and a price target of $280.
“We are encouraged by sizable same store sales beats across all 3 segments that flowed through to an EPS beat despite a $0.06 tax headwind,” Charles wrote in a note.
“For the call, we are most focused on European commentary given caution previously shared by management,” the analyst said. “Further, we look for FX guidance as we model below consensus EPS due to the strengthening USD,” he added.
MCD Price Action: Shares of McDonald’s were trading 3.2% higher to $264.83 Thursday morning.
Photo via Shutterstock.
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Image and article originally from www.benzinga.com. Read the original article here.