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RBC raises its price target on Outperform-rated McDonald's (MCD -0.6%) to $107 from $98 citing a...

RBC raises its price target on Outperform-rated McDonald's (MCD -0.6%) to $107 from $98 citing a projected improvement in margins of 130 basis points going forward. When asked about the "third straight year" of declining margins by Goldman analyst Michael Kelter, CFO Peter Bensen said on the call that there were more important considerations given the lack of growth in the industry: "Would we love higher margins? Yes, but in this environment, guest count growth and market share growth are [what is] critical." (transcript)
Comments (4)
  • Richard Adams
    , contributor
    Comments (186) | Send Message
    Nice of the MCD CFO to throw franchisees under the bus in the name of market share. Restaurant operators don't make money on "guest counts", they need to sell food at a profit to survive.
    22 Apr 2013, 03:31 PM Reply Like
  • mbn
    , contributor
    Comments (550) | Send Message
    They are still raking it in, just at lower percentages. In this environment of tight household budgets, getting the folks through the front door is key, even if the overall profit drops.
    22 Apr 2013, 05:50 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5657) | Send Message
    I love (MCD)'s:
    - coffee
    - frappe
    - Angus burger
    - breakfast wrap
    - McRib (when it is available)
    - quarter pounder
    - chicken nuggets
    22 Apr 2013, 09:01 PM Reply Like
  • metzinvest
    , contributor
    Comment (1) | Send Message
    Going Long
    22 Apr 2013, 10:30 PM Reply Like
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