Nomura names McDonald's top restaurant pick, ups price target to $190
Nomura Instinet analyst Mark Kalinowski names McDonald's his top restaurant pick for 2018 and upped his price target for the shares to $190 from $180. The stock closed Friday down 95c to $172.12. The analyst favors McDonald's ongoing rollout of fresh beef, including the new test of Archburgers in seven restaurants, and its new Dollar menu. Further, he believes McDonald's should continue to grab quick-service market share given the ongoing woes at third-largest restaurant chain Subway. In addition, the possibility of a stock split, which would be the burger chain's first one in nearly two decades, may be attractive to retail investors, Kalinowski tells investors in a research note. He raised his earnings and same-store-sales estimates for McDonald's.