The social media success of McDonald’s Grimace-themed birthday meal could be good news for the fast food chain’s earnings and share price, according to Truist. Credit card data from Truist pointed to a slight acceleration into the end of the second quarter and the potential to beat analyst sales and profit expectations. Truist anticipates system sales and same-store sales (SSS) to come in higher than Wall Street’s consensus. Analyst Jake Bartlett raised his price target on McDonald’s, which he rates a buy, to $335 from $327 previously. Bartlett’s new target, issued in a note to clients Monday, implies the stock could rise almost 14% from Monday’s close. That’s due in part to the success of the Grimace meal, a limited-time menu item launched last month that centered around the fast food chain’s furry, purple monster, first introduced in the early 1970s. A highlight of the meal for customers — and a centerpiece of a social media craze — was a purple-colored, berry-flavored milkshake. “We believe MCD US SSS momentum is being driven by strong marketing (including the successful ‘Grimace Birthday Meal’ launched 6/12, which went viral on social media) and strong operations as staffing improves,” Barlett said. On TikTok, videos with the hashtags #Grimace and #Grimaceshake in the captions have each been seen a total of 2.7 billion times. One popular trend , taken up by both everyday users and well-known internet personalities such as Trisha Paytas, involves creators drinking the shake before pretending to be dead or injured with the liquid spewing out of their mouths. To be sure, Bartlett said Truist data shows multiple other chains talso beating expectations for sales in the latest quarter amid surging demand. Of eight chains, data shows just two — Wendy’s and Chipotle — could see slight misses on sales forecasts, he wrote. McDonald’s shares have advanced nearly 12% this year, underperforming the S & P 500. — CNBC’s Michael Bloom contributed to this report
