McDonald’s price target raised to $315 from $305 at TD Cowen

Investing.com - TD Cowen has raised its price target on McDonald’s (NYSE:MCD) to $315 from $305 while maintaining a Hold rating on the stock. The fast-food giant, currently valued at $218.7 billion, trades at a P/E ratio of 26.9x and offers a 2.3% dividend yield. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The research firm’s adjustment comes as McDonald’s international operations showed stronger-than-expected performance in the second quarter, with value-focused offerings resonating well with consumers abroad amid more disciplined pricing strategies.

Despite the price target increase, TD Cowen is maintaining its second-half 2025 same-store sales estimates for the U.S. market, noting that McDonald’s continues to face challenges from a soft lower-income consumer backdrop domestically.

The firm acknowledged that U.S. same-store sales are unlikely to miss expectations over the next three quarters, aligning with bullish perspectives on the stock.

TD Cowen indicated that with McDonald’s shares trading at 23 times FY2 price-to-earnings ratio, the firm does not forecast enough upside potential to generate significant outperformance relative to the broader market.

In other recent news, McDonald’s reported strong second-quarter earnings, with earnings per share at $3.19, surpassing both JPMorgan’s estimate of $3.09 and the Street’s consensus of $3.15. The company achieved a 2.5% increase in comparable sales in the U.S. and a 4% rise in its International Operated Markets. Following these results, several firms adjusted their price targets for McDonald’s. JPMorgan raised its target to $310, maintaining an Overweight rating, while Piper Sandler increased its target to $325, keeping a Neutral rating. KeyBanc Capital Markets set a new target of $335, citing better-than-expected global same-store sales growth. UBS reiterated its Buy rating with a $350 price target, emphasizing McDonald’s improving global sales trends and strategic execution. Truist Securities also raised its price target to $360, reflecting building sales momentum. These recent developments indicate a positive outlook from analysts regarding McDonald’s performance.

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