According to BMO Capital Markets, McDonald shares may be in for a major gaining spree in the next year.
The firm initiated coverage on the fast food giant and gave the stock an outperform rating and a $153 price target.
According to analyst Andrew Strelzik, who wrote a note to cliets on Thursday, new menu improvements will drive earnings above expectations next year.
Strelzik wrote, “We believe MCD has a well-developed pipeline of menu news to continue to support customer engagement with the brand, including more focused value efforts, renovations around core menu items, and new product innovation.”
The consensus price target on McDonald’s from Wall Street firms is $130.30.
BMO Capital Markets also initiated coverage on competing fast food chain Wendy’s, and gave the stock a $17 price target.
Wendy’s presents investors an “attractive opportunity” because of its “defensible” premium positioning and the prospects of it achieving long-term goals following structural and business model enhancements, BMO Capital analyst Andrew Strelzik said in his note.
Disclaimer: We have no position in McDonald’s Corporation NYSE: MCD) nor Wendy’s Co. (NASDAQ: WEN) and have not been compensated for this article.