McDonald’s upgraded to Neutral from Sell at Rothschild & Co Redburn

Rothschild & Co Redburn upgraded McDonald’s (MCD) to Neutral from Sell with a price target of $306, up from $260. The firm says McDonald’s has executed its most comprehensive value reset since the Dollar Menu era. The company’s U.S. traffic has returned to growth and its two-year stacked same-store sales trend inflected from negative to positive, the analyst tells investors in a research note. While weight loss drugs remain a risk, cost “continues to gate penetration among the low- income households” for McDonald’s, contends Rothschild.