McDonald's (MCD) is "well-positioned" to deliver stronger US sales in H2, driven by new menu innovations and marketing plans even as spending pressure on lower-income groups may linger, UBS said in a note Friday.
The investment firm said shares have declined about 11% since mid-May but pointed to upcoming expected catalysts in the US business, including new menu items, value offerings, and expanded marketing plans. UBS expects these initiatives to drive improvement in US sales, forecasting same-store sales growth of 3% in Q3 and 4% in Q4.
UBS analysts also referred to discussions with McDonald's franchisees, which emphasized confidence for "a stronger rest of year."
UBS maintained a buy rating on the stock with a $350 price target.
Price: 287.86, Change: +2.21, Percent Change: +0.77
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