McDonald’s Stock (NYSE:MCD)
Based on what the company hears from franchisees, Loop Capital Markets anticipates that “Better Burger” will be the next big thing for McDonald’s Corporation (NYSE:MCD) in the United States in the next year. As a result, McDonald’s stock surged in the market.
The analyst Alton Stump believes implementing the Better Burger may boost comparable sales in the United States by between 400 and 500 basis points by the second half of 2023.
The launch of Better Burger is scheduled to begin on the West Coast the following month. It is anticipated that it will be accessible at all places in that area by the end of March. Better Burger will become available throughout the country by the end of June. The new burger platform will feature new brioche buns, an added onion flavoring while the burgers are cooking, a uniform made-to-order grilling process that lasts for 40 seconds and aims to deliver a more consistent hamburger searing and properly melted cheese; in addition, the grilling process will be uniform.
“In addition, fewer patties will be grilled on the same grill at the same time, which will allow better heating distribution and minimize the typical amount of time between consumers placing their orders and getting their burgers,”
It is generally agreed that moving to a made-to-order process for all of MCD’s burger products under the Better Burger brand was the single most critical factor contributing to the higher product quality.
Loop Capital has assigned a Buy recommendation to McDonald’s stock into 2023. The company predicts that same-store sales in the United States will increase by 8.0% for the fourth quarter of 2019, 5.3% for 2022, and 4.0% for 2023. The price objective of $328 that Loop has set for MCD is based on a multiple of 20 times the estimated EV/EBITDA for the year 2023.
Mutual and hedge funds are big fans of MCD stock, making it one of the few companies on their shortlist.
Featured Image: Pexels @ Samuel Figueroa
Author Shariq Khan 
