×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: US | McDonalds | Analyst | Note

Analyst: McDonald's Stays Strong in Weak Economy

Wednesday, 03 February 2010 11:26 AM EST

McDonald's "no frills" and low prices continue to resonate with cash-strapped consumers, driving strong results in 2010, a Goldman Sachs analyst said Wednesday.

Goldman Sachs analyst Steven T. Kron said in a note to investors that as consumers continue to cut back because of lingering worries over jobs and the economy, McDonald's and its low prices offers a "scarce" combination of higher margins and positive sales in stores open in at least one year.

Sales at stores open at least a year are a key measure of retailer performance because they measure growth at existing stores rather than from newly opened ones.

Kron said he expects a new dollar breakfast menu launched in January and a shift in advertising emphasizing value will help U.S. sales in stores over the next few weeks.

He put McDonald's on its "Conviction Buy" list and raised his price target by $2 to $75.

Shares of the Oak Brook, Ill., company rose $1.62, or 2.5 percent, to $65.65 and earlier traded at a 52-week high of $65.75. The stock has traded between $50.44 and $64.78 during the past 52 weeks.

© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


InvestingAnalysis
McDonald's no frills and low prices continue to resonate with cash-strapped consumers, driving strong results in 2010, a Goldman Sachs analyst said Wednesday.Goldman Sachs analyst Steven T. Kron said in a note to investors that as consumers continue to cut back because of...
US,McDonalds,Analyst,Note
185
2010-26-03
Wednesday, 03 February 2010 11:26 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved