What's On The Menu For McDonald's March Investor Meeting?

McDonald's Corporation (NYSE: MCD) reported strong Q4 2016 results, against the backdrop of tough year-ago comps.

The company appears “well positioned to build on the turnaround progress evident in 2016 and to deliver healthy financial performance in 2017,” Baird’s David Tarantino said in a report. He maintained an Outperform rating on the company, with a price target of $130.

Investor sentiment will likely improve as McDonald's crosses a challenging Q1 and “makes further progress on strengthening global operating fundamentals and transitioning to a higher-ROIC [return on invested capital] business model,” Tarantino commented.

Focus On March Investor Meeting

Management will be providing an updated long-term strategic plan for McDonald's during the investor meeting scheduled for March 1. After having made significant progress in its turnaround plan, the company would be looking to move “from the revitalization phase of the turnaround to strengthening the business in a way that delivers sustainable growth longer term,” Tarantino wrote.

Management would also announce the initial 2017 guidance at the meeting. The analyst also expects McDonald's to provide details of the varied initiatives being undertaken to achieve positive traffic momentum in the US.

Moreover, the company would be announcing updated financial targets, possibly including “long-run annual growth targets, more detailed SG&A outlook, perspective on capital spending and expected return of cash to shareholders.”