On Tuesday, TD Cowen adjusted its outlook on McDonald’s Corporation (NYSE:MCD) shares, raising the price target from $300.00 to $305.00. The firm maintained its Hold rating on the fast-food giant’s stock, which is currently trading near its 52-week high at $308.42. Analyst Andrew Charles at TD Cowen provided insight into the decision, citing McDonald’s solid fourth-quarter sales in its International Operated Markets (IOM) and a proactive strategy to address the challenging global sales environment. InvestingPro data shows analyst price targets ranging from $280 to $360, with additional insights available in the comprehensive Pro Research Report.
According to Charles, McDonald’s is equipped with a global playbook that could potentially lead to market share gains. The analyst’s perspective is that the direction of the stock will largely hinge on the market’s reception to the anticipated launch of new chicken wraps and strips in the upcoming months of May or June. This new product rollout is seen as a key factor in driving investor interest and shaping the future performance of McDonald’s shares, which currently commands a market capitalization of $221 billion.
The slight increase in the estimated earnings per share (EPS) for the years 2025-26 also informed the new price target. Charles applied a 23 times forward-year two price-to-earnings (P/E) ratio, aligning with the five-year average, to arrive at the $305.00 price target. According to InvestingPro, McDonald’s currently trades at a P/E ratio of 25.84x, suggesting it may be trading above Fair Value. The company maintains a strong financial health score of "GOOD" and has raised its dividend for 49 consecutive years, demonstrating consistent shareholder returns.
The analyst’s remarks came following a conference call in which McDonald’s leadership discussed the company’s plans to navigate through the current sales challenges. The discussion highlighted the confidence in the company’s strategic initiatives and their potential to positively impact sales growth.
Investors and market watchers are now looking ahead to see if the introduction of new chicken products will indeed resonate with consumers and contribute to the anticipated share gains for McDonald’s. The company’s efforts to innovate and adapt to market demands continue to be a focal point for analysts monitoring the fast-food sector.
In other recent news, McDonald’s Corporation has been the subject of several analyst revisions following its fourth-quarter earnings report. Loop Capital has increased the company’s stock target to $346, maintaining a Buy rating. This adjustment comes after McDonald’s reported a mixed financial picture, with earnings per share (EPS) of $2.83 falling short of estimates, and same-store sales in the U.S. declining by 1.4%. However, the company conveyed optimism about recovering from an E. coli outbreak by the second quarter of 2025.
Meanwhile, Morgan Stanley (NYSE:MS) raised McDonald’s stock price target to $340, maintaining an Overweight rating. The firm acknowledged challenges in McDonald’s fourth-quarter results, primarily due to the performance of company-owned stores. Despite subdued earnings growth, Morgan Stanley expressed confidence in McDonald’s ability to navigate industry headwinds.
KeyBanc Capital Markets also adjusted its outlook on McDonald’s, raising the stock target to $335 and maintaining an Overweight recommendation. This change was influenced by stronger-than-expected international same-store sales growth, despite margin contraction in the U.S. market. KeyBanc anticipates improvements in check growth throughout the year, driven by innovation and marketing efforts.
Finally, Bernstein analysts raised McDonald’s stock price target to $300, sustaining a Market Perform rating. Despite a positive sales trajectory, the firm cautioned that they do not anticipate significant enhancements in McDonald’s Operating Margins due to several factors, including potential impacts of tariffs and macroeconomic pressures in certain international markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.