UPDATE: RBC Capital Markets Initiates Coverage on McDonald's Corporation with Sector Perform Rating, $100 PT on Positive Factors, Potential Constraints Ahead

In a report published Friday, RBC Capital Markets analyst David Palmer initiated coverage on

with a Sector Perform rating and $100.00 price target. In the report, RBC Capital Markets noted, “McDonald's brand position, format (e.g. drive-thru), scale and rent/franchise fee business model should continue to result in steady cash flow and dividends (3.3% yield). However, we estimate EPS growth, Return on Invested Capital (ROIC) gains and potential stock upside ($100 target) could be constrained by a combination of macro factors and low incrementality of innovation and reimaging.” McDonald's Corporation closed on Thursday at $97.20.