Oppenheimer Downgrades McDonald's to Perform

Oppenheimer downgrades McDonald's MCD to Perform from Outperform and removes its $100 price target on the stock on limited visibility on EPS beats in the future. Oppenheimer says, "We continue to believe MCD represents a best-in-class operator and our rating adjustment does not reflect a material change in our fundamental outlook. However, potential for upward EPS revisions appears limited (given MCD's low operating leverage and currency risks) and the argument for multiple expansion appears stretched at 1.7x PEG." MCD closed at $98.75 a share yesterday.