According to CNBC, analyst Andrew Charles at Cowen Inc. (NASDAQ: COWN) expects McDonald’s Corp. (NYSE: MCD) shares to hit an all time high, raising the price target from $140 to $182, a 17.5 percent increase from Monday’s close.
The valuation comes as McDonald’s has announced that by the end of the year it will upgrade 2,500 stores to its “Experience of the Future” technology, namely digital kiosks that will replace cashiers and table delivery.
Charles stated, "MCD is cultivating a digital platform through mobile ordering and Experience of the Future (EOTF), an in-store technological overhaul most conspicuous through kiosk ordering and table delivery," Charles wrote in a note to clients Tuesday. "Our analysis suggests efforts should bear fruit in 2018 with a combined 130 bps [basis points] contribution to U.S. comps [comparable sales].”
The analyst also revealed that the fast food chain will offer mobile ordering across 14,000 restaurants in the United States by the end of 2017. He added, "MCD has done a great job launching popular innovations within the context of simplifying the menu, while introducing more effective value initiatives that have recently begun to improve the brand's value perceptions.”