McDonald’s has been on our “buy” list for more than five years, said David Palmer, senior restaurant analyst at UBS.
“They’re a good management team and they’ve upgraded their management along the way,” Palmer told CNBC.
The world's largest hamburger chain reported a higher quarterly profit on Wednesday, as global sales at established restaurants rose. The company announced that its April same-store sales are trending at least a strong or better than results compared to the first quarter.
“[McDonald’s earnings ] barely beat what we’d expected and what the Street was expecting,” Palmer told CNBC. He said the company was mostly hurt this quarter by the stronger dollar compared to the euro, ruble and the pound.
“It’s going to continue to hurt them near term, but things will probably get better in the second half of the year,” he said.
David Palmer does not own any stocks from McDonald’s. However, UBS has received compensation from McDonald’s within the past 12 months.
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McDonald's Competitors Include:
- Burger King
- Yum! Brands
- Darden Restaurants