Wells Fargo upgrades McDonald’s to Overweight after pullback

Wells Fargo analyst Zachary Fadem upgraded McDonald’s to Overweight from Equal Weight with an unchanged price target of $310. As broader quick service restaurant trends slow, McDonald’s should “stand tall” given its innovation tailwinds, digital initiatives and the consumer “flight to value,” the analyst tells investors in a research note. The recent pullback in the shares creates an opportunity to own a best in class operator, with clear comp and margin upside and near-term catalysts from the ongoing Best Burger roll out, contends Wells. It sees an entry point at current share levels.