Gold prices dip as December rate cut bets wane; economic data in focus
Investing.com - BMO Capital maintained its Outperform rating and $360.00 price target on McDonald’s (NYSE:MCD) following the fast-food giant’s third-quarter earnings report. This target sits well above the current price of $304.13 and represents nearly 10% upside from current levels. According to InvestingPro data, analyst targets for McDonald’s range from $250 to $371, with the stock currently trading slightly above its Fair Value estimate.
McDonald’s reported earnings per share of $3.22 for the third quarter of 2025, falling short of the consensus estimate of $3.33, primarily due to factors related to non-operating income and interest expenses. InvestingPro data shows that 19 analysts have revised their earnings downwards for the upcoming period, with the company’s diluted EPS for the last twelve months standing at $11.72.
Despite the earnings miss, McDonald’s global comparable sales slightly exceeded expectations, with particularly strong performance in the United States market, which the company expects to accelerate further in the fourth quarter.
McDonald’s has reiterated its 2025 guidance across all metrics except for its tax rate, maintaining its outlook despite the quarterly earnings shortfall.
BMO Capital remains constructive on McDonald’s stock, citing the company’s value and marketing leadership, competitive advantages, and accelerating unit growth potential, though the firm has tempered its estimates partly to reflect support against Extra Value Meal price reductions. With a market cap of $217.26 billion, McDonald’s trades at a P/E ratio of 26.31, which InvestingPro identifies as high relative to near-term earnings growth, reflected in its elevated PEG ratio of 11.95.
In other recent news, McDonald’s reported its third-quarter earnings for 2025, revealing an adjusted earnings per share of $3.22, which did not meet the forecasted $3.35. The company’s revenue also fell short of expectations, coming in at $7.08 billion against the anticipated $7.10 billion. Despite these misses, KeyBanc Capital Markets maintained its Overweight rating on McDonald’s stock with a price target of $335.00, attributing the earnings shortfall to tax and below-the-line items rather than operational issues. Meanwhile, Bernstein reiterated its Market Perform rating with a $320.00 price target, highlighting a promising setup for 2026 despite challenging macroeconomic conditions. Bernstein noted a 2.3% growth in US same-store sales during the third quarter and expects a marginal improvement in the two-year same-store sales growth stack for the fourth quarter. These developments reflect a mixed outlook for McDonald’s, with analysts maintaining varied ratings based on differing assessments of the company’s strategic and market positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.