BMO Capital Markets Raises Target to $110 on McDonald's

BMO Capital Markets reiterates its Perform rating on McDonald's MCD and raises its price target to $110 from $100 as the company should continue to see strong comps, despite challenges in EPS for 2012. BMO Capital Markets notes, "McDonald's reported 4Q EPS of $1.33, up 15% yr/yr and $0.04 above the First Call mean (although ~$0.02 was due to a better-than-expected tax rate). Comps accelerated throughout the quarter to +7.5% and January's compguidance (+5.5-6.5%) indicates acceleration in the two-year “stacked” trend. We view the strong comp trend and 15% 4Q EPS growth positively. Perhaps some were surprised by the magnitude of the potential 2012 FX headwind ($0.16-$0.18) and the prospect of moderating EPS growth." MCD closed at $98.75 a share on Wednesday.