The flow of positive comments on McDonald’s (MCD) continues after the company Friday beat profit estimates for its Q4. Yesterday Morgan Stanley analysts raised its 2010 earnings estimate for MCD, today, UBS Securities analyst David Palmer raised his price target to $72 from $67, writing that the company continues to gain share.
With an improving economy this year, Palmer thinks the company can shift marketing dollars to new products, such as its coffee war with Starbucks (SBUX).In the meantime, MCD is keeping general and administrative costs under control, helping the bottom line, while its sales should rise with general inflation in food costs, with which MCD correlates by about 75%, writes Palmer.
MCD shares are up 87 cents, or 1.4%, at $63.96,
Источник: http://blogs.barrons.com