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.
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