Morgan Stanley Slashes McDonald's US Sales Forecast to 0.3% in Q3

Morgan Stanley has trimmed its forecast for McDonald's US same-store sales in the third quarter to 0.3%, citing lingering execution issues from the prior quarter.

In a research note, Morgan Stanley said that McDonald's US business started the quarter softer than expected, with problems persisting from the previous period impacting July results.

The bank reduced its price target for McDonald's to $319 from $322, but maintained an 'equalweight' rating, indicating it views the weaker US backdrop as a temporary earnings setback rather than a lasting hit to the company's long-term cash generation.