McDonald's Shares Rise, but Analyst Lowers Price Target Due to U.S. Economic Weakness

A Thomas Weisel analyst cut his price target on McDonald's Corp., anticipating a U.S. market slowdown.

Matthew DiFrisco said he expects the company to do well despite declining consumer spending and other economic issues, however.

"With its tiered menu strategy, we expect that McDonald's will be able to drive traffic despite rising unemployment in the United States,"he said. "Management has indicated that it expects to launch regional marketing that highlights value in geographies that are seeing the greatest economic weakness."