McDonald’s Shares Fall after JP Morgan Analyst Said This

Shares of fast food giant McDonald’s were falling after a JP Morgan analyst had said the company’s earnings seem “softer” than expected for the third quarter.

JP Morgan analyst John Ivankoe has lowered hie estimate for the restaurant chain’s same-store sales growth from 6% to 5%. Additionally he cut full-year earnings expectations.

According to Ivankoe, conversations with McDonald’s management along with his team’s checks “suggest 3Q trending softer than we thought.”

“We still like MCD longer-term but believe 3Q19 results may present a better buying opportunity,” he said.
McDonald’s saw its shares tumble over 2% on Tuesday after the analyst expressed his concerns.

“The Summer of 2019 will be remembered for the premium chicken sandwich wars, led by Popeye’s and publicly fought by Chick-Fil-A and Wendy’s, and of course plant-based meats of which US McDonald’s absence is notable vs Burger King’s ‘Impossible Whopper,’” Ivankoe also said.

It was this past Friday that McDonald’s had said it would be testing out plant-based burgers in Canada.
Ivankoe has a $230 price target on the stock and an “overweight” rating.

Disclaimer: We have no position in Mcdonald’s Corp. (NYSE: MCD) and have not been compensated for this article.