Citi raises McDonald’s stock price target to $360

On Tuesday, Citi analysts maintained a Buy rating on McDonald’s Corporation (NYSE:MCD) shares and increased the price target to $360 from the previous $336. The adjustment followed McDonald’s recent fourth-quarter results and 2025 outlook, which indicated a positive trend in U.S. comparable sales. Currently trading at $308.42, near its 52-week high of $317.90, InvestingPro analysis suggests the stock is trading above its Fair Value.

Citi’s analysis pointed to McDonald’s strategic focus on its core strengths, including value offerings, as a key driver for the company’s improving performance. With a market capitalization of $221 billion and revenue growth of 3.7% over the last twelve months, the fast-food giant’s engagement with customers through new product launches and the expansion of its loyalty program, which now boasts 170 million active global members over a 90-day period, was also highlighted as a factor supporting the brand’s momentum.

Despite a divided consumer demand environment both domestically and internationally, Citi expressed confidence in McDonald’s approach to address the challenges of a persistently soft lower-income segment while capitalizing on marketing campaigns for full-margin product introductions.

The firm’s commentary underscores the belief that McDonald’s balanced strategy is well-positioned to accelerate same-store sales (SSS), enhance profit margins, and drive multiple expansions throughout 2025. This optimistic outlook on McDonald’s potential for growth and profitability underpins the rationale for the raised price target.

In other recent news, McDonald’s has been the focus of various analyst firms’ updates. Goldman Sachs has raised its price target for McDonald’s to $335, maintaining a Neutral rating, citing optimism about the company’s potential to stimulate customer traffic and sales growth. Meanwhile, Jefferies has increased its price target for McDonald’s to $349, reiterating a Buy rating and highlighting the company’s strategic value messaging and international performance.

Barclays (LON:BARC) has also adjusted its price target for McDonald’s, lifting it to $350 and sustaining an Overweight rating. The firm noted the company’s strong international comparable sales and expressed satisfaction with McDonald’s continued recovery in international markets. In contrast, Truist Securities has trimmed its price target for McDonald’s to $340, while reaffirming a Buy rating, highlighting the company’s robust U.S. same-store sales trends and effective navigation of operational cost pressures.

On the other hand, Stifel has held its price target for McDonald’s steady at $300, reiterating a Hold rating. The firm acknowledged the company’s efforts to improve U.S. comparable sales but maintained a cautious stance due to the company’s cumulative underperformance against the S&P 500. These are recent developments, reflecting the varying perspectives of different analyst firms on McDonald’s performance and potential.

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