McDonald's ( NYSE: MCD ) has attracted attention from another Wall Street firm as a smart way for investors to ride out the tough consumer spending backdrop.
The firm upgraded MCD to an Overweight rating from Neutral on the view that it is both a defensive value play and a leader in the global quick-service restaurant space. The restaurant chain is seen adding to its market share in an economic downturn and even improve margins.
"As the global consumer softens, companies who operate resilient business models and also have a wealth of experience at managing through such challenging periods come to the fore," noted analyst Edward Lewis.
"McDonald’s is such a name with a dominant position in the global QSR category, which has remained resilient during periods of consumer softness, and decades of experience at managing through such periods across what is now a stable of >40k units," he added.
Atlantic Equities assigned a price target of $278 to MCD to rep 14% upside potential for the restaurant stock.
Shares of MCD rose 0.71% premarket to $244.55.
McDonald's ( MCD ) is due to report Q22 earnings during the last week of July. See the consensus expectations on MCD.
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McDonald's lands bull rating from Atlantic Equities as defensive value play