Near-term challenges are mounting says the German broker, notably a decline in the performance of its e-commerce offering as its rival have caught and overtaking it in many cases.
Consumer spending has proved softer than expected while food price rises will impact on the profitability of the group’s franchisees.
Costs savings are also taking longer to come through than expected.
“Given the potential internal issues and the possibility of a more subdued external environment, we reduce our 2017E UK lfl growth forecast to 1.5%.”
That sees the share price target drop to 325p from 400p and the recommendation downgraded to ‘hold’.
Shares fell 3.5% to 280.4p.