McDonald’s Corp. shares MCD,
updated to better performance at Oppenheimer, with optimistic analysts highlighting the launch of the food giant ‘s upcoming loyalty program and its marketing potential, including partnerships more famous.
Oppenheimer has a $ 240 price target on McDonald’s shares, or about 13% above their current price.
This is the first time since 2012 that Oppenheimer has outperformed McDonald’s stock.
Analysts note that McDonald’s stock has performed well in recent times, declining 6% over the past three months while the Dow Jones industrial average DJIA,
has acquired 9.8%.
However, the company has many factors working in its favor. McDonald’s has teamed up with artists Travis Travis and J Balvin on food that encouraged sales and use of the app.
And, as the chicken sandwich wars continue, McDonald’s is set to launch a new Crispy Chicken Sandwich on February 24th.
YUM Brands Inc.’s YUM,
The KFC brand announced it will launch a new chicken sandwich in select markets Thursday after testing in Florida. The sandwich is set to roll out across the country by the end of February.
Read: McDonald’s, Shake Shack among the restaurant series starting 2021 with an addition to the roster
McDonald’s also stands to profit overseas.
“As global economies recover, particularly in Europe, this dynamism represents a powerful catalyst within McDonald’s financial model,” wrote Oppenheimer analysts led by Brian Bittner.
“This is further reinforced by the increased number of joint ownership sources internationally” – he added the figure at 2½ more than domestic co-owned units – “which appears to be financial model to improve store-level margins as international sales recover. “
Oppenheimer explained rival Wendy’s Co. WEN,
played from outperform.
“We remain strong on strong foundations – especially as Wendy’s talented management team builds on last year’s breakfast launch,” said analysts.
See: From a KFC-themed feature film to the Taco Bell resort: Why Yum Brands’ over-the-top marketing stunts work
“However, following our in-depth analysis, we are struggling to identify financial drivers as well as the consensus model. [1921–22] or find new catalysts to enable valuation expansion. “
MKM Partners raised a couple of red flags, and reduced price targets, in the pizza sector.
Pizza chain stocks maintained through the pandemic due to their existing reliance on digital technology for ordering and businesses largely based on delivery rather than dinner service.
MKM values the stock of Papa John’s International Inc. PZZA,
neutral with a price target of $ 91, down from $ 93. And Domino’s Pizza Inc. DPZ,
considered neutral with a price target of $ 440, down from $ 445.
Papa John’s has gained 47% over the past year and Domino’s has collected 32.2% for this period.
Pizza Hut Yum Brands chain has been shifting from eating into takeaway and delivery, which analysts say helped the company in 2020 and should continue to do so. that in the next few years.
“Pizza players do not benefit from gale features relatively easily and could be hopefully deterred by the spread of the vaccine, as it increases the likelihood of further transmission,” he wrote. the analyst Brett Levy.
“But a disconnected and digital world should continue, even as we move towards normalization. We don’t expect consumers to forget the pizza numbers, but we acknowledge that 2021 will be a challenging and uncertain year. ”