YUM - Domino's Pizza Restaurant Brands Sweetgreen In This Analyst's 2024 Top Picks: What's Cooking In For Other Restaurant Companies? | Benzinga
Oppenheimer analyst Brian Bittner has provided the analysis on some of the quick service restaurant chains.
Yum! Brands Inc (NYSE: YUM) - Upgrade to Outperform with $154 PT
The analyst believes YUM represents a diversified business model that drives superior growth, yet is armed with blue-chip-like resiliency.
The analyst's research highlights a risk/reward that is now too attractive to ignore given YUM's high-quality unit growth, reliable earnings momentum, and crown-jewel assets.
Digital sales grew 20% year-over-year in 3Q23 and now represent nearly 44% of global system sales. YUM has differentiated catalysts to accelerate digital at a faster clip than peers, according to the analyst.
McDonald's Corp (NYSE: MCD) - Downgrade to Perform from Outperform
After a deep-dive analysis into 2024, the analyst is unable to identify another round of catalysts to consensus earnings forecasts and/or MCD's valuation multiple.
The analyst anticipates FY23 will end with above 9% global SSS growth and nearly 17% EPS growth, well above historic norms.
However, FY24 is going to be tougher for SSS, particularly in the U.S. With more than 10% pricing embedded in full-year FY23 U.S. SSS.
Though global ...