KeyBanc reiterates Overweight rating on McDonald’s stock, maintains $335 target

Published 03/09/2025, 14:14
KeyBanc reiterates Overweight rating on McDonald’s stock, maintains $335 target

Investing.com - KeyBanc maintained its Overweight rating and $335.00 price target on McDonald’s (NYSE:MCD), currently trading at $315.76 and near its 52-week high, following a dinner with the company’s leadership team. According to InvestingPro data, the stock maintains a GOOD financial health score, with 16 analysts recently revising earnings estimates upward.

The dinner, hosted by McDonald’s, included Chairman and CEO Chris Kempczinski, CFO Ian Borden, and VP of Investor Relations Dexter Congbalay, who provided additional details on the company’s recent value-focused initiatives.

McDonald’s leadership discussed their efforts to address negative value perceptions among consumers, including a commitment from franchisees to restore the historical combo meal discount to at least 15%.

The company also shared information about its co-investment level in these initiatives and expectations for incrementality over time, according to KeyBanc.

KeyBanc expressed an incrementally positive view on McDonald’s competitive positioning following the meeting, noting the company "deserves more credit for the way it has navigated a choppy consumer spending environment."

In other recent news, McDonald’s Corporation has announced the issuance of $1.3 billion in medium-term notes, with $550 million due in 2031 at a 4.400% interest rate and $750 million due in 2036 at a 5.000% interest rate. This development comes as the company is actively pursuing a value strategy, with significant marketing investments to promote Extra Value Meals priced 15% lower than individual items. Analysts from Bernstein have maintained a Market Perform rating with a $310 price target, citing this value push. TD Cowen has raised its price target for McDonald’s to $330, highlighting confidence in the company’s European operations to boost market share and sales. Stifel also increased its price target to $315, following McDonald’s agreement with franchisees to reduce combo meal prices. Additionally, TD Cowen reiterated a Hold rating and a $315 price target, noting McDonald’s plans to introduce substantial price reductions on popular meals. These efforts include pricing eight popular combo meals 15% lower and offering limited-time breakfast and combo deals.

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