McDonald's (MCD) PT Lowered to $285 at Stifel

Stifel analyst Chris O'Cull lowered the price target on McDonald's (NYSE: MCD) to $285.00 (from $300.00) while maintaining a Hold rating.

The analyst commented: "MCD reported 1Q EPS of $2.70 (Stifel/Street $2.72), up 3% YoY. IDLM comps were softer than we expected (-0.2%, Stifel 1.0%), with no indication that impacted markets will improve much while the conflict continues. Elsewhere, results were roughly in line from an SRS standpoint, with U.S comps at 2.5% (Stifel 2.5%) and IOM at 2.7% (Stifel 3%). Given that the macro headwinds are more significant than the company initially anticipated and that industry traffic has recently been flat to down in several major markets (including the U.S.), management now expects modest growth in FY24 revenue. As we mentioned in previous notes, McDonald's has struggled in recent months with traffic from lower-income consumers. As a result, the company is looking to work with domestic franchisees to introduce a compelling national value program to address the softness. We lowered our 2024 adjusted EPS estimate to $12.00, up 1% YoY."

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