In a report released yesterday, Zachary Fadem from Wells Fargo maintained a Buy rating on McDonald’s (MCD – Research Report), with a price target of $350.00.
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Zachary Fadem has given his Buy rating due to a combination of factors indicating a promising outlook for McDonald’s in 2025. Despite challenges like the E. Coli incident and foreign exchange impacts, the fourth quarter results highlighted positive developments, such as increased traffic in December and effective management of general and administrative expenses. These factors, along with early signs of improvement in international markets, suggest a strong recovery and growth potential.
Additionally, McDonald’s strategic initiatives, including the successful launch of the McValue platform in the US and planned value offerings in Europe, are expected to drive market share gains. The company’s plans to introduce popular items like the Chicken Big Mac and expand internationally, alongside a significant number of new store openings, further bolster the growth outlook. The anticipated improvement in margins and the manageable price-to-earnings ratio also support a favorable investment case for McDonald’s stock in the coming year.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $300.00 price target.
Based on the recent corporate insider activity of 53 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.