CIBC World Cuts McDonald's to Sector Perform
CIBC World cut McDonald's (MCD ) to sector perform.
Analyst John Glass says he downgraded from sector outperform due to weak March same-store sales. Global same-store sales were up 5%, which is below his estimated 7% growth, while Europe sales were well below the estimated 4% growth.
Glass sees more challenging same-store sales starting in May. While the U.S. same-store sales deceleration is subtle, he says it raises macro issues (higher gas prices and food costs), and competitive issues. He thinks a multiple sales contraction or lack of further expansion will keep McDonald's at bay near term as same-store sales decelerate.
Glass cut the $32 target to $30.
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