S&P REITERATES STRONG BUY OPINION ON SHARES OF MCDONALD'S CORP.
Wednesday 09/09/2009 10:59 AM ET - Standard & Poor's Research Notes
August comparable sales rose 2.2%, on strength in Europe (+3.5%) outweighing weakness in several Asian markets (total APMEA -0.5%). However the 4.1% systemwide sales increase in constant currencies is supportive of our 2009 forecast for a 2% increase in revenues (company restaurants sales and franchise fees), exclusive of expected negative forex effects of 6%.
For 2010, we expect 4%-5% higher systemwide sales driven about equally by expansion and comp. gains.
We maintain our EPS estimates of $3.85 in '09 and $4.10 in '10, as well as our DCF-based $70 target price.