Jefferies raises PTs on McDonald's, Papa John's, citing sharper promotions in Q3

Jack In The Box

07/10/2024 17:13

** Brokerage Jefferies raises PT of restaurants McDonald's
 MCD.N , Papa John's International  PZZA.O  and Wingstop
 WING.O  ahead of Q3 results
    ** Raises PT on MCD to $345 from $330, expects
above-consensus profits on increased same-store sales (SSS) from
improved consumer traffic through Q3 
    ** Hikes PT on PZZA to $52 from $45 citing attractive price
points and new initiatives, growing third-party delivery
business despite negative app trends Q/Q through Q3
    ** Says WING will sustain SSS due to promotions and menu
innovations; raises PT to $380 from $350
    ** Cuts PT on Jack in the Box  JACK.O  to $50 from $59
citing key uncertainty from the effects of California minimum
wage hike that led to price increases and impacted traffic into
July, August
    ** MCD reports earnings on Oct. 29, WING on Oct. 30, PZZA on
Nov. 7
    ** YTD, up to Friday's close, MCD up ~2.5%, WING up ~61%,
while PZZA and JACK are down about 32% and 44.7%, respectively

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))