McDonald’s price target lowered to $290 from $295 at KeyBanc

KeyBanc analyst Eric Gonzalez lowered the firm’s price target on McDonald’s to $290 from $295 and keeps an Overweight rating on the shares. The firm notes McDonald’s delivered another strong quarter of top-line results that included better than expected/double-digit same-store sales growth in each of its three major segments and EPS that exceed consensus despite FX/inflationary headwinds. That said, KeyBanc is trimming its price target to reflect more persistent inflation than previously expected, one-time franchisee assistance efforts in Europe, and higher interest expense. While these factors will weigh on EPS in the near-term, the company is "clearly out-executing its peers," and the firm sees potential for earnings to accelerate as soon as next year.