CIBC World Cuts McDonald's to Sector Perform

Analyst John Glass cited weak March same-store sales for the burger chain

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.