McDonald's Battle-Tested Business Model Will Help Weather Economic Hurdles, Says Analyst

Oppenheimer analyst Brian Bittner reiterated an Outperform rating on the shares of McDonald's Corp MCD and raised the price target from $304 to $315.
The analyst said there is a bullish set up for U.S. same-store sales as the company has the strongest brand positioning it had in years, helped by modernization, best-in-class marketing, and improving service satisfaction levels.
Over the decade before COVID, MCD's unit growth averaged only 1.8% annually. With the management's 2023 guidance of nearly 4% unit growth, the analyst is excited about the building blocks to accelerate further.
The analyst sticks with MCD as a 2023 top pick as the company's unmatched scale and operational resilience have created strong global momentum, particularly in the U.S., where traffic is positive.
The analyst believes MCD is positioned to win regardless of the economic situation with ability to grow share in a recession or up-cycle.
The analyst reminded that in the 2008–2009 recession, MCD was the only public restaurant company that showcased positive earnings revisions throughout the downturn.
Also Read: From Burgers To Billions: Analyzing McDonald's Sizzling 6% Stock Growth In March And What It Means For Investors
Price Action: MCD shares are trading higher by 0.83% at $287.68 on the last check Thursday.
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