- Wells Fargo thinks McDonald's (NYSE:MCD) pulled the right levers with the Travis Scott meal and Spicy Nuggets menu addition helping to drive traffic.
- "MCD's Sept promotions have done quite well (relative to recent months sales and expectations), with the Travis Scott Meal helping the brand connect with an audience that’s been a weak spot over the past ~20 years (ages 11-24). We think TSM could be the start of a new promotional paradigm that weaves in the occasional short-term LTO burst along with ongoing everyday value & occasional 6-8 week LTO," writes analyst Jon Tower,
- Wells expects expect Q3 results from MCD will show off that it is the best positioned restaurant to re-capture sales and re-establish habits as consumers resume food-away from home spending and that the groundwork is established for MCD to produce a multi-year run of compounding SSS and growing profits. "In the US, we think the sales burst from the celebrity-themed meal has MCD rethinking its ongoing marketing spend & positioning (perhaps the pivot to digital over TV has officially occurred) while de-emphasizing the on-premise occasion," notes Tower.
- The Wells thinking on Overweight-rated MCD is pretty similar to what other firms have been saying about the company's strong management decisions. See all the Wall Street ratings on the restaurant stock.
- Shares of MCD are up 0.55% premarket to $220.70.