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R.J. Hottovy

R.J. Hottovy, CFA, is a consumer strategist for Morningstar.

More From RJ Hottovy

We plan a modest raise to our McDonalds $225 fair value estimate based on more optimistic near-term top and bottom line results and see shares as slightly undervalued.

The natural question investors might be asking is how much of wide-moat Amazon's recent momentum is tied to pandemic demand and how much reflects structural changes?

With new restaurant formats and operational efficiencies, we think Starbucks is poised for profitable market share gains in the years to come. We plan to raise our fair value estimate.

Following a paradigm-shifting update from Amazon, we raise our five-year average annual revenue outlook to 22% from 19% and our five-year operating margin target to 10% from 8%. We increase our fair value estimate to $3,500 per share

We believe specialty coffee will be one of the restaurant categories hardest hit by coronavirus disruptions, but we're not planning to change our fair value estimate on this wide-moat firm.

Efficiency plan and portfolio review are positives, but questions linger about the core business.

The wide-moat firm remains our top pick in online retail, with the pullback offering an entry point to invest.

More About RJ Hottovy

R.J. Hottovy, CFA, is a consumer strategist for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He is responsible for consumer discretionary and staples research. He has covered the consumer sector as an analyst and director of global consumer equity research for Morningstar since joining the company in 2008, and specializes in a broad range of consumer categories including restaurants, footwear and apparel retailers, consumer electronics retailers, fitness clubs, home improvement and furnishing retailers, and consumer product manufacturers.

Before joining Morningstar, Hottovy was a director and senior stock analyst for Next Generation Equity and an analyst for William Blair & Co., specializing in a wide range of retail and consumer product companies. He also spent two years at Deutsche Bank, covering waste management, water utilities, and equipment rental stocks.

Hottovy holds a bachelor’s degree in finance and a second degree in computer applications from the University of Notre Dame, where he graduated magna cum laude. He also holds the Chartered Financial Analyst® designation and is a member of the CFA Institute and the CFA Society of Chicago.

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