Bernstein Downgrades McDonald?s

[Stocks-to-Watch]

Fast food giant McDonald’s (MCD) is a widely respected company. But analysts at Bernstein Research are cooling a bit on the stock. In a note published today, analysts led by Sara Senatore downgraded the shares to Market-Perform from Outperform and dampened their 2012 earnings per share forecast by 15 cents to $5.63.

Why? Granted, McDonald’s is a best-in-class operator with a track record of smart investments and a sustainable earnings trajectory. But the company faces margin and currency headwinds, and one-time investments could dampen cash flow, according to today’s research note. And “given the stock is approaching historical peaks on valuation,” Senatore sees the stock – now trading at $98.73 a share — climbing to $105 share.

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Original Article Source by Barrons.com