Truist expects fast food chains to see growth from new menu innovations, promotions

Restaurant Brands International

15/10/2024 12:31

** Truist Securities says fast food chains including
Chipotle Mexican Grill  CMG.N , Burger King and McDonald's
 MCD.N  are poised for near-term growth following new menu
innovations and promotions 
    ** Brokerage adds that the $5 value meals launched early in
the summer appear to have contributed to improving sales growth
and are seeing strong demand as focus shifts from value to
innovative menu additions
    ** Truist raises price target on CMG to $71 from $69 and
expects co to beat Q3 results mainly driven by 'Smoked Brisket'
launch, which lifted both traffic and check
    ** Brokerage lifts MCD's PT to $350 from $295, adding that
growth appeared to accelerate throughout the quarter driven by
the 'Collectors Meal' promo, building traction with the '$5 Meal
Deal' and potential traffic uptick from the new 'Chicken Big
Mac' launch
    ** Expects Wendy's  WEN.O  to miss quarterly results as
sales growth decelerated in September due to a quiet promotional
quarter
    ** Up to Monday's close, CMG up nearly 30% and MCD has risen
4.5% so far this year 

 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; X: https://twitter.com/AnanyaMariam))