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 ...
We have a different problem here in LA: Everyone at McDonalds only speak ESPANOL!
No kidding? I would have never been able to tell...☺
How long before brokers are replaced by machines?
I don’t know why they just don’t automate the entire joint. Any robot could cook burgers or soak fries in boiling oil.
All they’d need to do is hire a security guard to make sure the customers don’t beat on the kiosk, steal the seats or burn the place down.
Scratch the security guard. Just automate that position too and put gun ports in the walls like on brinks trucks.
I had to go back and re-read to see if I was shilling for McDonald's stock. First individual stock I ever purchased, honestly do like how McDonald's is innovating improvements in their food and service.
One last comment about how McDonald's is pulling this all off: they send teams into other restaurants/restaurant chains to examine what seems to work for those other restaurants and why they have such a repeat customer following and then McDonald's finds way to adopt that themselves.
According to the woman I briefly dated, two of the chains that they study the most are Wendy's and Chik-fil-A.
Go figure.
Wonder if I will be able to order a Big Mac with quarter meat an extra sauce. Yum. Bet I won’t be able too.
My Daughter-in-laws family is large, and used to have a family “big band”. They traveled in a large van, and when they went to McDonald’s drive-thru, the dad didn’t ask what everybody wanted. He ordered 9 cheeseburgers, 9 fries, and 9 cokes, and that was that.
look for Cal to tax kiosks
McD surveys for free extra 1/4lb cheeseburger always ask what my fav restaurant is. I always answer CFA.
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