McDonald’s lands bull rating from Argus due to traffic improvement

Argus boosted its rating on McDonald’s (NYSE:MCD) to Buy from Hold on Tuesday. The firm said value menus, digital initiatives, and effective loyalty programs are all benefiting the fast-food chain.

Analyst John Staszak and his team also think McDonald’s (MCD) is attracting new customers through deliveries, drive-thru orders, take-out orders, and efforts to expedite orders. The McCafe bars are also seen as helping to boost customer traffic in all dayparts. Meanwhile, in international markets, McDonald’s (MCD) was noted to be raising sales through new stores, improvements to existing restaurants, and efforts to increase throughput. “We see McDonald’s geographically diverse locations, share buybacks and dividend hikes as reasons for long-term investors to own the shares,” summarized Staszak on the firm’s bullish thesis.

Argus assigned a price target of $345 to MCD to represent about 15% upside.

The Wall Street analyst scorecard on McDonald’s (MCD) shows 25 Buy-equivalent ratings stacking up against 13 Hold-equivalent ratings and no Sell-equivalent ratings. Seeking Alpha analysts have a consensus Hold rating on the restaurant stock.

Shares of McDonald’s (MCD) moved up 0.75% in premarket trading to $302.85.