JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Citi has raised its price target on McDonald’s (NYSE:MCD) to $365.00 from $364.00 while maintaining a Buy rating on the stock. The fast-food giant, currently trading at $291.67, has demonstrated strong market performance with a 21.44% return over the past year. According to InvestingPro analysis, the stock’s current price closely aligns with its Fair Value.
The firm expects U.S. comparable sales to meet expectations of 2% or higher, with easing comparisons and an improving same-store sales trajectory making for a more compelling investment story in the second half of 2025. With a healthy dividend yield of 2.43% and a 49-year track record of consecutive dividend increases, McDonald’s continues to demonstrate financial stability.
Citi believes McDonald’s will continue to build its narrative around shifting into a higher gear regarding product innovation, collaborations, and intellectual property tie-ins.
These initiatives are expected to enhance McDonald’s digital capabilities and leverage its marketing scale, potentially supplementing value as a traffic driver.
The firm suggests these strategies could lead to balanced franchisee economics, accelerating unit growth, and sustained same-store sales outperformance versus the industry. The company maintains a strong financial health score of GOOD from InvestingPro, supported by robust metrics including a 56.82% gross profit margin and moderate debt levels.
In other recent news, McDonald’s has been at the center of several notable developments. KeyBanc lowered its price target for McDonald’s to $325 from $340, maintaining an Overweight rating despite a competitive second quarter in the fast-food industry. The firm adjusted its expectations, reducing the full-year same-store sales growth estimate for McDonald’s U.S. to 1.1% and the 2025 earnings per share forecast to $12.40. UBS, on the other hand, reiterated its Buy rating with a $350 price target, highlighting McDonald’s potential for multiyear market share gains and anticipating strengthened same-store sales in the latter half of 2025. Meanwhile, McDonald’s and Krispy Kreme (NASDAQ:DNUT) have decided to end their partnership by July 2025, citing financial viability issues for Krispy Kreme, though McDonald’s noted the collaboration was a small part of its breakfast business. Additionally, McDonald’s settled a $10 billion lawsuit with Byron Allen’s companies, agreeing to purchase advertising at market value while denying any wrongdoing. The settlement also resolved a related $100 million lawsuit, with both parties expressing satisfaction and a willingness to move forward with a business relationship.
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