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Investing.com - Truist Securities has reiterated its Buy rating and $360.00 price target on McDonald’s (NYSE:MCD) following a sell-side dinner with the company’s top executives. The target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $260 to $373, with 16 analysts recently revising earnings estimates upward.
The firm expressed increased confidence that McDonald’s will strengthen its value positioning and accelerate market share gains after meeting with Chairman and CEO Chris Kempczinski and CFO Ian Borden. The company’s strong financial health, rated "GOOD" by InvestingPro, supports this strategic initiative, with the stock currently trading near its 52-week high.
McDonald’s plans to reintroduce "Extra Value Meals" on September 8, replacing what had been renamed "Combo Meals" as discounts declined. The company will also offer deeper discounted $8 meals in September and November.
Truist noted that while sales impact may not be immediately positive as traffic offsets lower pricing, the cost of supporting these value initiatives appears minimal with no impact on 2025 guidance.
The meeting also covered McDonald’s technology initiatives, competitive dynamics, a potential remodel program, and the impact of immigration policy, which was described as minimal.
In other recent news, McDonald’s has been the focus of several analyst reports and financial activities. KeyBanc reiterated its Overweight rating on McDonald’s, maintaining a $335 price target, following discussions with the company’s leadership about their value-focused initiatives. Meanwhile, Bernstein has reiterated a Market Perform rating with a $310 price target, highlighting McDonald’s $40 million investment in marketing to promote its Extra Value Meals, which are priced 15% lower than individually sold items. TD Cowen increased its price target to $330 from $315, citing confidence in McDonald’s European operations and projected market share gains. Stifel also raised its price target to $315 from $300, maintaining a Hold rating, following McDonald’s agreement with franchisees to lower prices on several combo meals. Additionally, McDonald’s announced the issuance of $1.3 billion in medium-term notes, with $550 million due in 2031 and $750 million due in 2036. These recent developments reflect McDonald’s strategic focus on value and financial maneuvers to strengthen its market position.
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