02:15 AM EDT, 04/30/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target to $65 from $85, 26x our FY 26 (Sep.) EPS estimate, in line with its three-year average forward multiple. We lower our EPS estimates to $2.46 from $2.88 for FY 25 and to $2.48 from $3.26 for FY 26. We expect revenue growth in the low single-digit range, a modest improvement over FY 24, with higher international comp growth, on recent improvements in China, partly offset by continued weak U.S. foot traffic. We expect comp growth to improve sequentially, as management is making progress by improving throughput in morning daypart. However, we now see operating expenses rising significantly higher (+6% in FY 26) versus FY 24 levels (+2% Y/Y). We think the 460 bps contraction in Q2 (Mar-Q) operating margin was deeper than most investors anticipated, as the company takes a more labor-oriented approach to achieve desired throughput on mobile, delivery, and drive-thru sales channels. Our Sell rating reflects our concern over prolonged margin headwinds.