11:22 AM EDT, 06/21/2024 (MT Newswires) -- McDonald's (MCD) faces US sales pressures and value perception concerns but is positioned for improvement in H2 and 2025, UBS said in a note Friday.

McDonald's can improve its pressured value perceptions with a renewed value focus, its scale and marketing advantages, strong core value attributes, and a history of solid performance during periods of heavy discounting, UBS said, adding that the company's competitive advantages in digital, store remodels, marketing, and operations will continue to drive sales.

The investment firm said that franchisee discussions and historical value analysis support its view that "multiple value-focused initiatives," along with marketing and new product rollouts in the coming quarters should lead to a "positive inflection in US sales trends."

UBS lowered its US same-store sales estimates for the next few quarters due to challenges faced by the quick-service restaurant industry and feedback from franchisees but expects trends to improve sequentially through the year, according to the note.

We "believe McDonald's maintains competitive advantages to win in the current environment," UBS said.

UBS reiterated its buy rating on McDonald's stock and kept the price target at $335.

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