Why McDonald's Is A Top 10 Idea For Bank Of America
- McDonald's Corporation (NYSE: MCD) have risen 7.53 percent year-to-date, reaching a high of $101.17 on October 5.
- Joseph T. Buckley of Bank of America Merrill Lynch has maintained Buy rating on the company.
- The stock has been included in Bank of America’s Top 10 US Idea List for Q4, with Buckley expecting positive catalysts to the stock.
Analyst Joseph Buckley expects the company to return to positive same-store sales in the United States, driven by the nationwide launch of the all-day breakfast initiative on October 6, as well as “incremental restructuring news,” expected at McDonald’s investor meeting on November 10.
“The restructuring news is unlikely to include action on MCD’s real estate but G&A cuts, a higher targeted franchise mix and more aggressive capital structure/share repurchases may be part of the plan,” the Bank of America report said.
Buckley also expects the company to provide more details regarding its turnaround plan for the US, while also raising the dividend.
All these factors are expected to impact the stock performance positively.
Latest Ratings for MCD
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