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Investing.com - JPMorgan has raised its price target on McDonald’s (NYSE:MCD) to $310.00 from $305.00 while maintaining an Overweight rating following the fast-food giant’s second-quarter earnings report. According to InvestingPro data, analyst targets for McDonald’s range from $260 to $373, with 15 analysts recently revising their earnings expectations upward.
McDonald’s reported second-quarter earnings per share of $3.19, exceeding JPMorgan’s estimate of $3.09 and the Street’s consensus of $3.15. The company delivered a 2.5% comparable sales increase in the U.S. and a stronger 4% comparable sales growth in its International Operated Markets (IOM). The company maintains strong financial health with an "GOOD" rating on InvestingPro, supported by a robust gross profit margin of 57% and consistent dividend payments for 50 consecutive years.
U.S. store margins declined to 12.3% compared to 14.3% in the same period last year, while IOM margins improved slightly to 17.8% from 17.4% last year, reflecting the current sales environment’s cost structure.
JPMorgan expects further improvement in U.S. performance during the second half of 2025, supported by the launch of Snack Wraps and easier year-over-year comparisons. The firm also noted that IOM has better value positioning to maintain positive comparable sales.
The research firm highlighted ongoing challenges with the U.S. lower-income consumer segment, which is experiencing double-digit traffic weakness, and emphasized McDonald’s need to establish price certainty around core menu items to attract these customers back to the brand.
In other recent news, McDonald’s released its second-quarter 2025 earnings, which prompted several analyst firms to adjust their price targets and ratings. Piper Sandler raised its price target for McDonald’s to $325, citing solid U.S. same-store sales and better-than-expected performance in international markets. KeyBanc also increased its price target to $335, highlighting strong global same-store sales growth amid a competitive industry landscape. UBS maintained its Buy rating and a $350 price target, noting improving sales trends and successful strategic execution, suggesting potential market share gains despite consumer pressures.
Stifel reiterated a Hold rating with a $300 price target, observing that U.S. sales growth was driven by higher average check values, though traffic remained negative. Bernstein SocGen increased its price target to $310, pointing to McDonald’s robust marketing strategies and clearer earnings visibility compared to its peers. Overall, these developments reflect a range of analyst perspectives on McDonald’s recent performance and future positioning in the market.
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