McDonald’s stock price target raised to $350 from $345 at BMO Capital

Investing.com - BMO Capital has raised its price target on McDonald’s (NYSE:MCD) to $350 from $345 while maintaining an Outperform rating on the stock. The new target suggests a potential 14% upside from the current price of $307.66, with analyst targets ranging from $260 to $365.

The price target increase follows McDonald’s second-quarter earnings per share of $3.19, which exceeded the consensus estimate of $3.14. The stronger-than-expected performance was driven by robust global comparable sales and lower general and administrative expenses, which more than offset headwinds from non-operating income and tax rates. InvestingPro data shows the company maintains strong profitability with a 56.8% gross margin and has achieved a solid 16.9% total return over the past year.

BMO Capital noted that the International Operated Markets segment delivered the biggest positive surprise in the quarter, while U.S. comparable sales accelerated on both one-year and multi-year bases despite a challenging operating environment.

McDonald’s has reiterated the majority of its 2025 guidance, though the company slightly tempered expectations for company-operated restaurant margins and lowered its interest expense outlook.

BMO Capital remains constructive on McDonald’s stock, citing potential benefits from improving U.S. comparable sales trajectory, leadership in value offerings and marketing, and strengthening unit growth at what the firm considers an approachable multiple.

In other recent news, McDonald’s Corporation reported its financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share of $3.19, exceeding the forecasted $3.15. Additionally, McDonald’s revenue came in at $6.84 billion, outperforming the expected $6.7 billion. These results highlight the company’s ability to navigate a challenging quick-service restaurant environment. Despite the positive earnings, management expressed caution regarding lower-income U.S. consumers, whose visits declined by low double-digit percentages. Raymond (NSE:RYMD) James reiterated its Market Perform rating on McDonald’s stock, noting the company’s solid performance and better-than-expected international trends. These developments provide investors with a snapshot of McDonald’s current financial health and market position.

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