McDonald’s price target raised to $315 from $305 at Jefferies

Jefferies analyst Andy Barish raised the firm’s price target on McDonald’s to $315 from $305 and keeps a Buy rating on the shares. The analyst maintains a positive view on the U.S. restaurant and foodservice distribution sector into 2023, but turned more selective to reflect greater chance of a recession next year. McDonald’s (MCD), Bloomin’ Brands (BLMN), Dave & Buster’s (PLAY) and Performance Food Group (PFGC) are Barish’s top picks. The analyst sees continued demand for full-service restaurants, and believes any potential sales declines will be offset by lower food inflation and cost management. Barish is less positive on limited service restaurants, citing mixed same-store-sales and margin trends. He believes pricing power for limited service is less robust than in full-service. Meanwhile, foodservice distribution set for a shift in 2023, with a "relatively favorable" setup on better supply chain efficiencies and fewer cost headwinds, Barish tells investors in a research note.