McDonald’s looks dulcet golden-headed into 2018.
The combination of McDonald’s planned rollout of fresh, never-frozen beef, its up to date relaunch of its Dollar Menu and woes at other restaurant chains could resist the restaurant boost its same-store sales and grab more market portion in the industry.
The burger giant’s stock ended 2017 up more than 41 percent, the largest heritage move in the restaurant industry during the year, and more than one analyst is work for more gains in the new year.
Nomura-Instinet analyst Mark Kalinowski prompt his earnings expectations and stock price target for the chain Tuesday, vocation it his top restaurant pick for 2018.
He predicts that same-store sales for the company hand down continue to grow, particularly in the second half of this year, citing the native rollout of fresh, never-frozen beef in its Quarter Pounder and Signature Crafted burgers as a foremost catalyst.
Kalinowski revised his earnings per share 2017 forecast to $6.55, up 2 cents from his aforementioned prediction. He also raised his 2018 and 2019 earnings estimates by 12 cents per appropriation each to $7.05 and $7.65, respectively.
“Given McDonald’s strong same-store garage sales momentum, we raise our target multiple on the stock to 27x (from 26x),” he noted. The stock’s target price is now $190, up from $180. McDonald’s partitions closed at $172.12 on the last day of trading in 2017, and closed Tuesday up a taste more than half a percent.
Peter Saleh, an analyst at BTIG, also forecasts positive growth for McDonald’s and lifted his target price to $200 from $175.
“After dissimilar years of playing defense, we believe McDonald’s is finally returning to an unsavoury strategy which will yield stronger comp growth and multiplied market share,” Saleh wrote in a research note Tuesday.
Saleh notorious that the company’s new Dollar Menu, which launches Jan. 4, has an average dismiss of about 13 percent. This could be a major driver for advance.
McDonald’s launch of $1 and $2 soft drink and McCafé beverages in April of up to date year has been cited by the company as part of the reason sales be experiencing been strong in recent quarters. He estimates McDonald’s U.S. same-store reduced in price on the markets could “remain in the mid-single digits” in 2018 and beyond.
On Tuesday, Saleh supported his 2018 same-store sales estimate to 4.1 percent growth, up from 3 percent. He also animate his 2019 same-store sales prediction to a 3.9 percent gain, up from 3.3 percent.