Analyst Nick Setyan from Wedbush maintained a Buy rating on McDonald’s (MCD – Research Report) and increased the price target to $330.00 from $320.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Nick Setyan has given his Buy rating due to a combination of factors that highlight McDonald’s strengths in navigating global challenges and its growth potential. McDonald’s robust size and scale have positioned it well to manage near-term global headwinds, allowing it to gain transaction share across various markets, including the U.S. The company’s Q4 performance, while slightly below consensus expectations, showed promising signs with global systemwide same-store sales growth exceeding forecasts in several regions, particularly in IOM and IDLM.
Management’s confidence in the recovery of U.S. same-store sales growth post-Q1, driven by menu innovations and marketing strategies, supports the potential for accelerated growth as the year progresses. Additionally, the company’s guidance for operating margin expansion, alongside expected unit growth and solid free cash flow projections, further strengthens the case for a positive outlook. Despite some adjustments in estimates, such as a slight reduction in 2025 operating margin and EPS estimates, the overall trajectory remains favorable, reinforcing the Buy rating.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $300.00 price target.