Also, the fast-food restaurant chain's balance sheet remains "relatively conservative," which helps support the stock's valuation, which is sitting near a historical high, Slabaugh added.
For the third quarter, McDonald's is expected to report a U.S. same-store sales growth of 3.5 percent, which is above the consensus estimate calling for a 3.4 percent gain, the analyst stated. Also, the company is expected to report an earnings per share of $1.77, which is also above the Street's consensus estimate of $1.75 per share.
McDonald's is also expected to show a growth in foot traffic in the third quarter as $1 small coffee and $2 espresso-based drinks brought more people into stores, although it did result in a lower average check price. This may prove to be a beneficial strategy over the longer-term as coffee beverages represents a "more meaningful" add-on and/or traffic driver.
Related Links: Positive Trends Continue For McDonald's; Time To Buy The Stock? Looking For Exposure To The Restaurant Sector? Try McDonald's Instead Of Domino's© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.