Goldman Adds McDonald's To Conviction Buy

Goldman Sachs is adding shares of McDonald's

to its Conviction Buy List, and it has a $96 price target on shares. In a note to clients, Goldman Sachs writes, "We upgrade MCD shares from Neutral to Buy and add the shares to our Conviction List as we see the potential for 20% total return, inclusive of the company's 3% dividend yield. We see this return profile as particularly attractive in the current uncertain environment given our analysis suggests little statistical correlation between MCD's SSS growth and the macroeconomic backdrop in either the US or Europe. In addition, MCD is executing particularly well right now and winning considerable market share. US SSS growth is running in the mid-single digits, while key QSR competitors Burger King, Wendy's, Taco Bell and KFC are all in decline." Shares of MCD lost $2.97 yesterday to close at $82.11.