Posted on 06/23/2017 2:12:56 PM PDT by Enlightened1
Cowen says McDonald's will upgrade 2,500 restaurants to its "Experience of the Future" technology by year-end, which includes digital ordering kiosks.
The firm raises its rating on McDonald's to outperform from market perform and price target for the shares to $180 from $142.
Same store sales estimate for 2018 raised to 3 percent from 2 percent.
McDonald's shares hit an all-time high on Tuesday as Wall Street expects sales to increase from new digital ordering kiosks that will replace cashiers in 2,500 restaurants.
Cowen raised its rating on McDonald's shares to outperform from market perform because of the technology upgrades, which are slated for the fast-food chain's restaurants this year.
McDonald's shares rallied 26 percent this year through Monday compared to the S&P 500's 10 percent return.
Andrew Charles from Cowen cited plans for the restaurant chain to roll out mobile ordering across 14,000 U.S. locations by the end of 2017. The technology upgrades, part of what McDonald's calls "Experience of the Future," includes digital ordering kiosks that will be offered in 2,500 restaurants by the end of the year and table delivery.
"MCD is cultivating a digital platform through mobile ordering and Experience of the Future (EOTF), an in-store technological overhaul most conspicuous through kiosk ordering and table delivery," Charles wrote in a note to clients Tuesday. "Our analysis suggests efforts should bear fruit in 2018 with a combined 130 bps [basis points] contribution to U.S. comps [comparable sales]."
He raised his 2018 U.S. same store sales growth estimate for the fast-food chain to 3 percent from 2 percent.
The analyst raised his price target for McDonald's to $180 from $142, representing 17.5 percent upside from Monday's close. He also raised his 2018 earnings-per-share forecast to $6.87 from $6.71 versus the Wall Street consensus of $6.83.
(Excerpt) Read more at cnbc.com ...
If I could, I’d have a trailer out on some (small - my desire) land.
Yeah, lowered expectations.
I think the General is set up - hope I got the right guy.
I use the paper to dry my hands with after washing them to open the bathroom door when I get out then throw it away.
[What ff joint delivers to the table?]
Jack in the Box, often. Yumm, 99cents for 2 greasy tacos.
Once in awhile, Arby’s.
No jack in the box here. Arby’s yells your name.
Absolutely - one McDonald’s (on the road towards Branson) has the foot thingy to open the door.
Smart. They need to be everywhere.
I intentionally leave a soap film on my hands for extra protection.
Was in a place a week ago - guy walks out of toilet stall - and right out the door.
You can bet I had 3 paper towels wet with soapy water when I grabbed that door handle.
The idiocy - I swear.....
They don’t work. I just tried on. A big line had me go to the kiosk thinking my very simple order would be ready sooner. Wrong!
The line was cleared before I could get through all the options on the kiosk. It will be rejected by the customers.
Aw bummer. Too bad it’s not the Jack in the Box of the 1970’s (before they killed someone in Colorado)
Arbys - Chicken Bacon Swiss with mayo - yeah baby
Still not as good as Chik-fil-A grilled chicken - but a little cheaper.
Buc Car’s had had kiosk ordering for some time.
I’m referencing what takes place in “some” fast food places here on the West Coast. Don’t get the idea from my comments that all places deliver to tables now.
I do know that some Carl’s Jr’s, McDonalds, and Panda Express restaurants do it.
It would be my take that some folks living out here on the West Coast could go to places that don’t, and have missed the ones that do. You may get some folks saying they haven’t seen it, but I’d imagine most have seen it in some places.
Will they still have drive through? They will need a lot of touch screens to handle that.
I just don’t think fast food is any bargain. Went to the In N Out burger place and the service was very friendly however the hamburger patty was rail thin. For about the $7.00 combo meal I can make several thick burgers at home for about the same amount.
Well, that’s right out of the movie, “ Obsolete”
Well, that’s right out of the movie, “ Obsolete”
The really important question, though, is whether kiosks will make their wretched food taste better.
Royal Farms has done this for a long time.
Not necessarily. I’ve used these kiosk in Georgia and Florida. They’re not idiot proof. When something goes wrong, you’re back in line at the counter, trying to get the issue fixed.
Seems like it’s $10 at Five Guys now with fries and drink.
And they’ve not been using good meat for a couple years now around me.
Which is why I’ve only gone maybe once or twice in the last 2 years.
They’re making a huge mistake with their reputation.
Seems like a cheap Price Club soy burger patty.
Just not very tasty - I can get a better burger, for less, at Culver’s, What-a-Burger, Freddy’s or even a TGIF Friday’s or Houlihan’s (lunch prices on the last two - been awhile though, since the last two) - Friday’s all but disappeared near me - closest one is about 150 miles.
Too bad, too - because I miss the appetizers with wontons and ginger soy.
I don't even like Subway. This made it even less enjoyable.
I was a two time a week McDonald’s customer but stopped last week over their Sodomy Fries.
So I hope they enjoy their high cause without me that’s the last time they’ll show a profit ;)
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