McDonald's Earnings: Slight Miss Doesn't Change Our Constructive Stance on Industry Stalwart

While wide-moat McDonald's slightly missed our earnings expectations across the board during its fourth quarter of 2023, we continue to believe the firm is arguably the best positioned in our global coverage to benefit from restaurant digitization, particularly through its loyalty program, and an ongoing global mix-shift toward chained restaurant brands. Investors should capitalize on an opportunity to load up on shares at a slight discount after a 3%-4% pullback in intraday trading, leaving the firm trading at about an 8% discount to our $310 intrinsic valuation, which we expect to leave largely unchanged.