Bank of America: McDonald's Shares Traded Down, Despite Strong Earnings

According to a research report published today by Bank of America, McDonald's MCD shares trading down reflect a “sell on the news” reaction to a good quarter. “McDonald's 4Q EPS totaled $1.33, easily exceeding our $1.26 estimate and consensus of $1.29. Strong December sales and higher U.S. company margins contributed to the upside. Total operating income before currency was up 14% for the 4Q and up 10% for the year, well ahead of long term goals of 6%-7% growth,” Bank of America said in the report. Bank of America reiterates its Buy rating and $107 PT on McDonald's, which closed yesterday at $98.75.