McDonald’s price target raised to $335 from $320 at KeyBanc

KeyBanc raised the firm’s price target on McDonald’s (MCD) to $335 from $320 and keeps an Overweight rating on the shares. The firm notes McDonald’s Q4 results included better-than-expected international same-store sales growth that was offset by same-store sales declines/margin contraction in the U.S. market. Traffic growth was positive in the U.S. in the Q4, outpacing industry peers, as the brand leaned more heavily into value offerings to win back guests following the E. coli outbreak. KeyBanc believes same-store sales trends are likely to remain volatile in the Q1 due to weather and as industry growth remains anemic. But it thinks innovation and marketing will drive improvement in check growth as the year progresses.