Credit Suisse analyst Jason West raised his price target for McDonald's to $185 from $178 saying that recent franchisee checks point to continued same-store sales momentum so far in Q4 for McDonald's. He reiterates an Outperform rating on the shares.

Says U.S. comp sales "roughly flat" so far in Q2. Says macro headwinds larger than expected. Says industry traffic experiencing "flat to declining trends." Says consumer's affordability concerns "heightened." Says does not have a national value platform similar to competitors, only local. Sees a big opportunity to develop a national value message. Says consumers "very discriminating" with spending and "price weary." Says U.S. restaurant margins now back to 2019 levels. Says in "decent shape" with menu prices. Expects high single digit labor inflation in FY24 and "historic" food and paper inflation. Says franchisees in a "strong position."

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Looks to accelerate pace of restaurant openings in FY24 and "pacing on track" vs. global plan.