Prudential Equity Group analyst Larry Miller maintained an "overweight" rating on McDonald's after the company posted better-than-expected sales for February led by the European market, which partially offset slightly lower-than-expected sales in the U.S.

The company's U.S. sales increased 3.6%, below the analyst's estimate of 4% to 4.5%, driven by extended hours, premium chicken sandwiches and its breakfast business. He noted that bad weather in various parts of the country had a negative impact on sales.

McDonald's (nyse: MCD - news - people ) also reported an "impressive" 5.4% European sales increase compared to a 3% gain a year ago, beating the analyst's estimate of up 3%. Positive results in the three major European markets -- the U.K., Germany and France -- drove the increase.

The analyst maintained a target price of $42 on McDonald's shares and also maintained his recently raised first-quarter earnings estimate of 50 cents per share.

"A consistent U.S. business and an improving European business could lead to upward earnings-per-share revisions in 2006," the research analyst said.
http://www.forbes.com/markets/2006/03/09/mcdon ...