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Investing.com - Truist Securities has reiterated its Buy rating and $350.00 price target on McDonald’s (NYSE:MCD) following the fast-food giant’s third-quarter 2025 results. The price target represents approximately 15% upside from the current stock price of $304.04, with InvestingPro data showing the company commands a market capitalization of $216.91 billion.
The company reported inline same-store sales and beat adjusted EBITDA expectations for the quarter, according to Truist’s analysis released Thursday. McDonald’s latest EBITDA stands at $14.43 billion for the trailing twelve months, with revenue reaching $26.26 billion during the same period.
McDonald’s is currently emphasizing value offerings in the U.S. market, which Truist expects will drive improved traffic in 2026, while the company’s balanced menu approach combining value and innovation is generating solid same-store sales in international markets despite macroeconomic challenges. The company has achieved modest revenue growth of 1.25% over the last twelve months.
Truist anticipates McDonald’s will continue gaining market share in the current challenging economic environment, consistent with the company’s historical performance during downturns, while margins are expected to expand despite investments in pricing through the "Extra Value Meal" initiative and elevated beef prices. With a beta of 0.52, McDonald’s stock generally trades with low price volatility, making it a relatively stable investment during economic uncertainty.
The investment firm believes McDonald’s defensive business attributes, particularly its ability to gain market share during challenging periods, will support a premium valuation for the stock. Currently trading at a P/E ratio of 26.07, InvestingPro identifies the stock as trading at a high P/E ratio relative to near-term earnings growth. McDonald’s maintains a "GOOD" overall financial health score of 2.77 and offers a dividend yield of 2.43%. Discover 8 more exclusive InvestingPro Tips and access McDonald’s comprehensive Pro Research Report, part of the in-depth analysis available for 1,400+ top US equities.
In other recent news, McDonald’s reported its third-quarter earnings for 2025, revealing an earnings per share (EPS) of $3.22, which did not meet the consensus estimate of $3.33. The company’s revenue also fell short of expectations, coming in at $7.08 billion compared to the anticipated $7.10 billion. Analysts from BMO Capital and KeyBanc Capital Markets have maintained their positive outlooks on McDonald’s stock, with BMO Capital keeping an Outperform rating and a price target of $360.00, while KeyBanc reiterated an Overweight rating with a $335.00 price target. Both firms attributed the earnings miss to factors such as non-operating income, interest expenses, and tax-related items rather than operational performance. Meanwhile, Bernstein SocGen Group reiterated a Market Perform rating with a $320.00 price target, noting a favorable setup for McDonald’s as it heads into 2026, supported by a 2.3% growth in US same-store sales in the third quarter. Management anticipates a slight improvement in same-store sales growth in the upcoming quarter. Despite missing earnings forecasts, McDonald’s stock experienced a rise, reflecting investor confidence in the company’s strategic direction.
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