UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on McDonald's Corporation

In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on McDonald's Corporation (NYSE: MCD), but lowered its price target from $103.00 to $101.00.J.P. Morgan noted, “Maintain Overweight. We continue to recommend MCD as a long-term core holding in the restaurant space for low risk/solid absolute return, with a ~5% FCF yield, including a current ~3.5% dividend yield. High global AUVs and MCD's rent/royalty model allow for significant reinvestment and company capital contribution for remodels and other incremental initiatives that further the cycle of profitability and reinvestment. A 1% global change in comps is worth 2% to EPS vs. global QSR at 2-4% (ex-ARCO) and casual dining at 4-7%. Similarly, a 100-bp change in global company store margins is worth 2% annually vs. global QSR at 0-6% (ex-ARCO) and casual dining at 11-13%.”McDonald's Corporation closed on Friday at $88.72.