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Investing.com - KeyBanc Capital Markets has reiterated its Overweight rating and $335.00 price target on McDonald’s (NYSE:MCD) following the fast-food giant’s third-quarter earnings report. The current stock price of $305.67 sits below this target, though InvestingPro data indicates McDonald’s is trading near its Fair Value.
The company’s third-quarter earnings per share missed consensus estimates, with KeyBanc attributing the shortfall primarily to tax and below-the-line items rather than operational performance. This follows a trend identified by InvestingPro, which notes that 19 analysts have revised their earnings downwards for the upcoming period.
Global same-store sales came in line with expectations, while U.S. same-store sales trends slightly exceeded buy-side forecasts, according to KeyBanc. The firm noted that sales momentum continued into October.
KeyBanc acknowledged McDonald’s faces ongoing challenges in improving value perceptions and attracting low-income consumers but emphasized the company "appears to be executing at a high level in a difficult environment." Despite these challenges, McDonald’s maintains a GOOD Financial Health Score of 2.77 according to InvestingPro metrics.
The research firm trimmed its 2025 and 2026 earnings per share estimates to reflect the third-quarter miss and franchisee support costs, while maintaining its $335 price target, which represents approximately 25 times KeyBanc’s 2026 earnings per share estimate. McDonald’s currently trades at a P/E ratio of 26.31 and has raised its dividend for 50 consecutive years, offering investors a yield of 2.43%.
In other recent news, McDonald’s Corporation reported its third-quarter 2025 earnings, which fell short of analysts’ expectations. The company posted an adjusted earnings per share of $3.22, missing the forecasted $3.35. Revenue also came in below expectations at $7.08 billion, compared to the anticipated $7.10 billion. Despite these misses, McDonald’s stock showed resilience, reflecting investor optimism about the company’s strategic direction. Bernstein SocGen Group has maintained its Market Perform rating on McDonald’s stock, with a price target of $320.00. The firm highlighted a promising setup for McDonald’s leading into 2026, noting a 2.3% growth in US same-store sales during the third quarter. Management has also indicated a potential improvement in the two-year same-store sales growth stack in the fourth quarter. These developments suggest a cautiously optimistic outlook for McDonald’s in the near term.
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