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Investing.com - Piper Sandler has raised its price target on McDonald’s (NYSE:MCD) to $325.00 from $314.00 while maintaining a Neutral rating following the fast-food giant’s second-quarter 2025 results. The stock, currently trading at $308.35 with a market capitalization of $221 billion, is trading slightly above its InvestingPro Fair Value.
The restaurant chain delivered what Piper Sandler described as a "good update," with U.S. same-store sales meeting expectations while international operated markets performed better than anticipated.
McDonald’s management reaffirmed its expectation for accelerating same-store sales in the second half of 2025, providing reassurance to investors about the company’s growth trajectory.
Piper Sandler noted an interesting discussion during the earnings call regarding value offerings on McDonald’s core menu, which represents approximately 50% of the company’s U.S. business today, separate from its loyalty program and McValue platform.
The research firm commended McDonald’s management for prioritizing value on the core menu, suggesting this strategy could potentially serve as a catalyst for market share gains and increased transaction volumes if successfully implemented.
In other recent news, McDonald’s reported its second-quarter 2025 earnings, revealing an earnings per share of $3.19, which surpassed the consensus estimate of $3.14. This performance was bolstered by strong global comparable sales and reduced general and administrative expenses, despite some challenges from non-operating income and tax rates. Following these results, BMO Capital raised its price target for McDonald’s to $350 from $345, maintaining an Outperform rating. KeyBanc Capital Markets also adjusted its price target to $335, citing better-than-expected global same-store sales growth. UBS reiterated its Buy rating and upheld a $350 price target, noting the company’s strategic execution and potential for market share gains. Meanwhile, Stifel maintained a Hold rating with a $300 price target, observing that U.S. comparable sales growth met investor expectations but highlighted issues with traffic and value perception. Bernstein SocGen increased its price target to $310, pointing to McDonald’s strong marketing and clearer earnings visibility compared to peers. These developments reflect a broad acknowledgment of McDonald’s recent financial performance and strategic positioning in the market.
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