McDonald’s Corporation (NYSE:MCD) may be the first major fast food chain to bring mobile order and pay to all of its stores in the United States.
This report comes from Wells Fargo analyst Jeff Farmer. He claims that McDonald’s Corporation will bring mobile ordering and pay to all of its 14,000 stores in the U.S. by the end of the year.
If McDonald’s Corporation does succeed in bring mobile ordering and pay to all of its U.S. stores, it will give it a major advantage over its rivals. Wendys Co (NASDAQ:WEN) hopes to have the option at half of its stores by the end of the year. Jack in the Box Inc. (NASDAQ:JACK) and Restaurant Brands International Inc’s (NYSE:QSR) Burger King are still testing the feature.
Jeff Farmer upgraded McDonald’s Corporation in his note that mentions the mobile order and pay plans. His new valuation range for the company is $145 to $150, which is up from $125 to $130. He also increased his earnings per share estimate for 2017 to $6.22 from $6.21, reports CNBC.
McDonald’s Corporation introducing mobile ordering and pay makes sense. The company has been working to expand how it reaches out to customers. This includes launching a test earlier this year that let customers place orders for delivery. The test used a mobile app and the orders were delivered by Uber drivers. It included adding a $4.99 delivery fee to the cost of the meals.
MCD stock was up slightly as of Monday afternoon.