McDonald's story is now very different than it was at the beginning of the year when CEO Don Thompson was leaving the company.
Despite the fact that same-restaurant sales in the United States are lagging most of the fast-food industry, the new CEO, Steve Easterbrook, “has managed to change the narrative on the burger giant,” Sozzi assured.
Under New Management
The expert pointed out a few areas where McDonald’s has improved since Easterbrook took over, including food preparation, service and franchisee satisfaction.
However, he continued, Easterbrook now faces a new challenge: “To keep moving the narrative forward to justify a company that will be hard-pressed to deliver 5 percent to 7 percent operating income growth in 2016.”
Moreover, the latest investor day, held on November 10, was a mixed bag for the CEO and his team, Sozzi pointed out. There were good news and not-so-good news. Overall, the analyst believes the shares “deserve to trade sideways into the next earnings report.”
Grading The Company's Performance
Finally, he looked into food-quality, highlighting a few concerns like the excessive use of condiments and the use of “poor-quality cheese product.”
Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
Image Credit: Public Domain, via Wikimedia Commons© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
.jpg#/media/File:McDonald%27s_Cheeseburger_(2014-09-17).jpg){kind=link}