McDonald’s franchisee checks see Q1 SSS just below consensus, says Loop Capital

Loop Capital keeps a Buy rating and $357 price target on McDonald’s but notes that the firm’s latest franchisee checks indicate that its Q1 same-store sales growth came in modestly below expectations. The company’s 2-year stacked basis 1.5%-2.0% growth in Q1 equates to a gain of 14.1%-14.6% – in-line to modestly below the reported 2-year stacks of 14.6% in Q4 – but the implied 3-year stacks of 17.6%-18.1% represents a “significant deceleration” from McDonald’s reported 3-year stacks of 22.1% in Q4, the analyst tells investors in a research note.