McDonald's Corp MCD

McDonald's Persistent Brand Investment Should Manifest in Long-Term Global Share Gains

We surmise McDonald’s is poised for market share gains. In our view, the firm is prudently bolstering its value proposition to meet consumers squarely in their quest for value, while an enhanced focus on centralization positions it to capture global whitespace through unit growth—all while staying laser-focused on evolving tastes and ramping up digital engagement. We posit this approach has manifested in 5.4% comparable sales growth against just 2.2% total growth for the global foodservice industry over the last seven years. And we expect outperformance to endure, with 6.6% system sales growth driven by 3.6% comp boosts and 4.1% unit growth, easily outstripping our 4.5% expectation for the industry.