McDonald's Investor Day Is Coming; Here's How To Play It

McDonald's shareholders have been on quite a ride recently as the stock has surged on high hopes that new CEO Steve Easterbrook’s turnaround plan will usher in a new era of growth for the global fast food giant.

The company is holding a highly anticipated investor day on November 10, and shareholders are anxious to hear what the company has to say about its path forward.

What To Watch For

There are four major strategic topics that will be of particular importance to shareholders. First, they will be looking for an update on the company’s recent refranchising efforts, including possible long-term mix guidance. Second, McDonald's could update its capital return plan for 2016 and beyond.

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Third, the company will certainly provide updates on operations and technology initiatives. Finally, shareholders will be watching for any signs that McDonald's has plans to monetize its real estate holdings.

Deutsche Bank Is Bullish

McDonald’s stock has made a major bounce-back in recent months, but Deutsche Bank analyst Karen Short believes that there’s even more upside to come. “We continue to believe MCD is far from broken and our level of conviction in this story has only increased as we can clearly see a path to success, thus supporting our Buy rating and $130 PT (price target),” she explained.

Credit Suisse Concurs

Credit Suisse analyst Jason West also believes that McDonald’s stock is a buy heading into the upcoming investor day. “We remain positive on the stock into this meeting and beyond, as we expect momentum to continue to build on multiple fronts, esp. SSS, cost savings, and share buybacks,” he wrote.

Credit Suisse has an Outperform rating on McDonald’s and a $118 price target for the stock.

Disclosure: The author holds no position in the stocks mentioned.

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