Interactive Brokers shares jump as it secures spot in S&P 500
On Monday, Jefferies analyst Andy Barish increased the price target for McDonald’s Corporation (NYSE:MCD) shares, raising it to $349 from the previous target of $345, while reiterating a Buy rating on the stock. The adjustment comes after McDonald’s reported its fourth-quarter earnings. Currently trading at $308.42, the stock is near its 52-week high of $317.90, with InvestingPro data showing relatively low price volatility.
Barish noted that the negative same-store sales (SSS) in the United States for the fourth quarter were largely anticipated by investors. However, he highlighted that the slight increase in customer traffic and momentum going into the first quarter were positive signs, suggesting that McDonald’s value messaging is resonating with consumers. The company maintains strong financial health, with InvestingPro analysis indicating a robust gross profit margin of 56.62% and healthy return on assets of 15.23%.
Internationally, McDonald’s SSS figures surpassed expectations, which helped to balance out the softer performance in the U.S. market and margins. This led to earnings per share (EPS) that were roughly in line with projections. Barish also mentioned that the company’s guidance for 2025 was largely as expected, except for a higher interest expense. He believes that selling, general, and administrative expenses (SG&A) have the potential to be leveraged more than currently anticipated.
The long-term growth algorithm and total shareholder return (TSR) opportunity were also cited as attractive factors in the decision to reiterate the Buy rating with the new price target of $349. McDonald’s appears to be on a positive trajectory, with strategic value messaging and international performance contributing to the company’s outlook. The company has maintained dividend payments for 50 consecutive years, with a current dividend yield of 2.41%. For deeper insights into McDonald’s performance metrics and future potential, investors can access comprehensive analysis through InvestingPro, which offers detailed financial health scores and expert research reports.
In other recent news, McDonald’s Corporation has been the subject of several analyst updates. Barclays (LON:BARC) has increased McDonald’s price target to $350 from $347, maintaining an Overweight rating. The Barclays team highlighted McDonald’s strong fourth-quarter international sales, which helped offset weaker U.S. results. They also expressed optimism about the company’s potential for margin expansion and increased capital expenditures in 2025.
Conversely, Truist Securities lowered its price target from $342 to $340 but reaffirmed a Buy rating. The Truist analyst pointed out McDonald’s robust U.S. same-store sales trends and successful ’McValue’ menu launch. The company’s international sales were also noted as an area of strength.
Meanwhile, Stifel maintained a Hold rating on McDonald’s shares with a steady price target of $300. Despite a slight decrease in U.S. comparable sales and a small miss on earnings per share, Stifel analysts acknowledged McDonald’s efforts to improve U.S. sales. They also noted McDonald’s historical performance during periods of higher inflation.
Raymond (NSE:RYMD) James maintained a Market Perform rating on McDonald’s, citing the company’s fourth-quarter earnings that met expectations despite a slight drop in U.S. sales. The analyst highlighted the company’s 2025 goals, including nearly 1,800 net new unit openings.
Lastly, BofA Securities maintained a Neutral rating with a steady price target of $312. BofA’s analysis underscored a slight earnings miss due to lower than anticipated sales and margins, but also noted positive signs in the company’s international performance.
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