This year is coming to a close with markets holding near all-time highs. At times like this, analysts like to update their perspectives on sectors and industries, as the new year is just around the corner.
In this case, RBC Capital Markets is taking a renewed look at the restaurant industry, and the firm sees some serious upside for some major names within the industry.
RBC issued an Outperform rating and a $218 price target for McDonald’s Corp. (NYSE: MCD). The firm was quick to say that recent moves to modernize stores and changes to leadership offer solid upside for the Golden Arches.
Also worth noting and not part of the new coverage by RBC: McDonald’s has announced that Ian Borden, most recently President, International Developmental Licensed Markets, has been appointed to President, International, effective immediately. Borden will continue reporting to Chris Kempczinski, McDonald’s president and CEO. This announcement follows the appointment of Joe Erlinger as President, McDonald’s USA.
As for Domino’s Pizza Inc. (NYSE: DPZ), RBC issued another Outperform rating, with a $337 price target. This comes after the stock fought some resistance near the $300 price level and its all-time high.
Rounding out the top picks by RBC, Starbucks Corp. (NASDAQ: SBUX) at Outperform with a $97 price target, Darden Restaurants Inc. (NYSE: DRI) at Outperform with a $135 price target and Restaurant Brands International Inc. (NYSE: QSR) as Outperform with a $77 price target.
Separately, Brinker, Chipotle Mexican Grill, Dunkin’, Texas Roadhouse, Wendy’s and Yum Brands were all started with Sector Perform ratings in the new RBC coverage.