stock set an intraday record high Monday morning and was on track for its first record close since August 2019.
The stock (ticker: MCD) was up $1.9% to $222.12 and has risen 4.9% amid a five-trading-day winning streak, according to Dow Jones Market Data. Shares were up 62% from their 52-week closing low, set on March 23.
In a note on Sunday, Piper Sandler analyst Nicole Miller Regan said her firm’s restaurant checks suggest sales were positive in August, “driven in part by McDonald’slong-standing brand popularity with consumers as preferred quick-service brand.”
“Our initial September checks suggest trends are on pace to be sequentially higher driven in part by upcoming promotions including Spicy McNuggets and the Travis Scott Meal promotion,” she noted.
Operators also indicated the company’s breakfast sales—which were slammed amid Covid-19 shutdowns and the work-from-home trend—have seen some improvement. That part of the day is likely still below normal, she noted.
Miller Regan raised her price target on the stock to $203 from $197, but maintained a Neutral rating. She also raised her price targets on
Del Taco Restaurants
“Broadly speaking, we view our checks as a general extension of trends discussed during the recent earnings cycle,” she wrote. “More specifically, brands that have made digital investments are seeing the benefits through greater traction with guests, increasing sign-ups to brand specific loyalty programs, the habituation of new patterns by leveraging the off-premise and delivery channels.”
In July, Barron’s argued McDonald’s stock was ready to bounce back, amid signs of improvement for the fast food industry. The stock has since risen about 12.7%.
Write to Connor Smith at [email protected]