McDonald’s (MCD) remains poised for market-share gains in key international markets even amid investor concern over slowing same-store sales, UBS Securities said Tuesday in a report.
UBS estimates 4% Q4 same-store sales growth in the US and said investor signals indicate expectations of “in line to modestly below” the 4.5% consensus view. The investment firm said negative investor sentiment emerged on the company’s 2024 operating margin guidance and elevated valuation compared with certain peers.
McDonald’s is set to release its Q4 results on Feb. 5. UBS said investor focus will be on sales trends and customer spending patterns, the company’s international development licensed markets segment and additional commentary on its 2024 operating margin guidance of mid to high 40s%.
While the company is expected to face “difficult comparisons and less pricing” in 2024, UBS said McDonald’s is still poised for long-term gains beyond 2024 given its sales leverage and cost efficiencies.
UBS has a buy rating on McDonald’s and a price target of $340.