McDonald’s delivered a solid Q3 performance surpassing Wall Street expectations on all counts which is why its stock price has been surging over the past few weeks. The company’s sustained resiliency is demonstrated by its quarterly global comp sales, which increased by 9.5%. Their market-wide quarterly comp sales were hurt by the expiration of the VAT benefits. However, they are still expanding their QSR market share. In the quarter, the chicken was a significant contributor to comp sales growth across all of their key markets, and they will continue to concentrate on expanding their worldwide market share in this significant category. The management is also concentrating on expanding its business through chicken by leveraging the popularity of enduring icons like Chicken McNuggets. The McCrispy Chicken Sandwich has received a phenomenal response. There have been increased investments towards providing improved convenience to the customers of McDonald’s while providing scrumptious and reasonably priced cuisine in the third quarter. This should help in fuelling their business’ underlying sales growth and market leadership across all categories. We maintain our ‘Hold’ rating on McDonald’s with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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