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Non-Tech : McDonalds (MCD) -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (181)	3/27/1999 6:31:00 PM
From: Howard Bennett	Read Replies (1) \| Respond to of 288

Peter Oakes must have Arterial Vascular Disease from eating too much junk from MCD. (see bottom) He can't be serious! MCD's past five year EPS growth rate has been 11% P/E is now 40. Are we to believe that the past 5 years have been so bad for MCD that they only were able to grow EPS by 11% per year...but now things are so much rosier and the stock deserves a 30% premium P/E to the S&P 500? Get real Mr. Oakes. Sounds to me like one of Merril's large institutional clients wants to get out of MCD (or at least lighten the position) and by upgrading the stock he'll see good price support while the dumping is occurring. If Mr Oakes is so prescient --- then why has there been massive insider selling by MCD execs? Riddle me that Mr. Oakes! The real ballsy call was by Schroder & Co on the 8th of March. Downgraded based on valuation -- to perform inline. ---------------------------------------------- Friday March 26, 10:20 am Eastern Time RESEARCH ALERT - Merrill raises McDonald's target CHICAGO, March 26 (Reuters) - Merrill Lynch analyst Peter Oakes said in a report Friday he raised his 12-month price target on fast food chain McDonald's Corp. (NYSE:MCD - news) to 55 from 50, citing growing investor confidence in the company's domestic strategies. -- Oakes says some of McDonald's strategies to get its U.S. business back on track have already paid off, while the payoff on others is still pending. -- Says one of the most visible efforts is the company's Made-For-You cook-to-order system that is being rolled out nationwide. -- Says that given second quarter promotions like Furby and Monopoly, which start today, and Beanie Babies later in the quarter, comparable sales in the period will not be as difficult as previously thought. -- Oakes says McDonald's international operations are expected to benefit from an improved global economic outlook. -- Says new share price target is based on a 30 percent premium to the S&P 500 stock index using his 2000 earnings per share estimate of $1.60. -- McDonald's shares up 2/16 at 44-5/16 in morning trade on the New York Stock Exchange.