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Investing.com - BMO Capital raised its price target on McDonald’s (NYSE:MCD) to $360.00 from $350.00 while maintaining an Outperform rating following a sell-side dinner with the company’s CEO and CFO. The stock, currently trading at $316.39, sits near its 52-week high of $326.32, with 16 analysts recently revising their earnings estimates upward.
The key focus of the dinner was McDonald’s U.S. Extra Value Meals launch, with additional topics including broader value opportunities, a beverage platform test, and technology initiatives.
BMO Capital expressed increased confidence in McDonald’s ability to gain U.S. market share in both the near and long term, citing enhanced value leadership relative to its competitive set.
The firm views the financial implications of temporary marketing and franchisee support as manageable for the fast-food giant.
BMO Capital also noted that the discussion underscored an array of medium-term U.S. comparable sales drivers currently in development at McDonald’s.
In other recent news, McDonald’s has been the focus of several analyst reviews, all centered around its renewed emphasis on value offerings. The company is making significant strides with its value strategy, including the relaunch of the Extra Value Menu, which has been a topic of discussion among analysts. Stifel has maintained a Hold rating on McDonald’s, setting a price target of $315, while TD Cowen also reiterated a Hold rating with a slightly higher target of $330. Truist Securities, on the other hand, expressed increased confidence in McDonald’s strategy, reaffirming a Buy rating and a $360 price target. KeyBanc remains optimistic as well, maintaining an Overweight rating and a $335 target, following discussions with the company’s leadership. Meanwhile, Bernstein has kept a Market Perform rating and a $310 price target, noting McDonald’s $40 million investment in marketing to support the new value initiatives. These developments highlight the company’s efforts to strengthen its market position through strategic pricing and promotional plans.
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