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TD Cowen analysts introduced McDonald’s (NYSE:MCD) as one of Europe’s best ideas as the company generated around a third of its full-year sales and operating profit from Europe.
“MCD’s European operations are largely accounted for in the International Operated Markets (IOM) segment. We are encouraged by a +0.8 correlation between U.S. SSS expectations & MCD’s forward year EV/EBITDA multiple prior to COVID-19 due to our confidence in U.S. sales strength,” the analysts wrote today.
The analysts are also confident that the U.S. strength will likely “overshadow potential international challenges amid management concerns for a deeper & prolonged European recession vs the U.S.” in 2023.
All-in-all, they have a “strong conviction in MCD’s U.S. symbiotic playbook.”
The analysts hiked the price target to $299 per share on the Outperform-rated MCD stock.
McDonald’s shares are up modestly today and +2.7% year-to-date (YTD).
