McDonald’s: Resilient Growth and Market Share Gains Amidst Challenges

Zachary Fadem, an analyst from Wells Fargo, maintained the Buy rating on McDonald’s (MCD – Research Report). The associated price target remains the same with $350.00.

Zachary Fadem has given his Buy rating due to a combination of factors that highlight McDonald’s potential for growth and resilience. Despite a challenging first quarter, McDonald’s demonstrated strength in April and maintained its market share gains, with further innovations on the horizon. The company’s strong EBIT percentage controls and favorable foreign exchange conditions contribute to its defensive characteristics, making it an attractive investment.
Fadem acknowledges the risks associated with the fiscal year 2025, including macroeconomic challenges and declining quick-service restaurant traffic. However, McDonald’s has managed to capture market share in key regions and is poised for growth with new product innovations like Strips and Snack Wraps. Additionally, McDonald’s has shown positive performance in international markets, with notable gains in France, Canada, and the Middle East, further supporting the Buy rating.

In another report released today, DBS also reiterated a Buy rating on the stock with a $339.00 price target.

Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MCD in relation to earlier this year.