McDonald's (MCD) faces "numerous" sales catalysts as it has started leveraging innovation and marketing to offset broad based macro pressure, Truist Securities said in a note Thursday.
The firm noted that the company's recent Minecraft promotion that drove better April sale-store sales will be followed by the US launch of new "McCrispy Strips" this week and then "Snack Wraps," possibly in June.
"While elevated menu pricing since COVID may limit fast food market share gains in a recession, we continue to view [McDonald's] as best positioned, especially with sales catalysts ahead," Truist said.
The firm said marketing and innovation will solidly accelerate US SSS despite macro headwinds.
Truist raised its price target on McDonald's to $350 from $340 and maintained its buy rating.
Price: 312.93, Change: -0.71, Percent Change: -0.23
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.