McDonald’s (NYSE:MCD) Earns Buy Rating from BTIG Research

McDonald’s (NYSE:MCD)‘s stock had its “buy” rating reissued by investment analysts at BTIG Research in a research note issued on Monday, Benzinga reports. They currently have a $295.00 target price on the fast-food giant’s stock. BTIG Research‘s target price points to a potential upside of 17.38% from the stock’s previous close.

Several other analysts have also weighed in on MCD. Jefferies Financial Group decreased their target price on shares of McDonald’s from $260.00 to $250.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 29th. Tigress Financial lifted their target price on shares of McDonald’s from $385.00 to $390.00 and gave the company a “buy” rating in a research report on Friday, July 17th. Wells Fargo & Company decreased their target price on shares of McDonald’s from $300.00 to $270.00 and set an “overweight” rating on the stock in a research report on Monday, October 5th. Loop Capital decreased their target price on shares of McDonald’s from $301.00 to $273.00 and set a “hold” rating on the stock in a research report on Wednesday, August 5th. Finally, Evercore reduced their price target on shares of McDonald’s from $320.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, September 24th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, McDonald’s currently has an average rating of “Moderate Buy” and an average price target of $295.64.

McDonald’s Stock Performance

McDonald’s stock opened at $251.32 on Monday. The company has a 50 day moving average price of $249.43 and a 200 day moving average price of $269.68. McDonald’s has a 52 week low of $229.20 and a 52 week high of $341.75. The firm has a market capitalization of $177.85 billion, a price-to-earnings ratio of 20.37, a P/E/G ratio of 2.83 and a beta of 0.44.

McDonald’s (NYSE:MCD) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same quarter last year, the business posted $3.19 EPS. The company’s revenue for the quarter was up 3.7% on a year-over-year basis. Equities analysts forecast that McDonald’s will post 12.84 earnings per share for the current fiscal year.

Hedge Funds Weigh In On McDonald’s

Hedge funds have recently bought and sold shares of the company. Ascentis Wealth Management LLC grew its stake in McDonald’s by 4,008.8% in the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock worth $22,768,000 after purchasing an additional 82,180 shares in the last quarter. Ridgewood Investments LLC purchased a new position in McDonald’s in the 3rd quarter valued at $1,026,000. Borer Denton & Associates Inc. increased its position in shares of McDonald’s by 16.9% during the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock worth $3,746,000 after purchasing an additional 2,000 shares during the last quarter. HighTower Advisors LLC grew its position in McDonald’s by 7.1% in the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock valued at $397,822,000 after acquiring an additional 97,060 shares in the last quarter. Finally, Viking Fund Management LLC grew its position in shares of McDonald’s by 60.0% during the third quarter. Viking Fund Management LLC now owns 40,000 shares of the fast-food giant’s stock worth $9,238,000 after buying an additional 15,000 shares in the last quarter. Institutional investors own 70.29% of the company’s stock.

McDonald’s News Summary

Here are the key news stories impacting McDonald’s this week:

• Positive Sentiment: BTIG reaffirms a Buy rating: BTIG Research maintained its Buy recommendation and set a $295 price target, implying roughly 19% upside from the referenced share price. The target suggests the analyst sees room for recovery despite McDonald’s trading below its 200-day moving average.
• Positive Sentiment: Menu promotions could support traffic: McDonald’s is bringing back the McRib and another popular sandwich, which could generate limited-time demand, increase customer visits and support comparable sales. McDonald’s Just Brought Back One of Its Most Popular Sandwiches Ever
• Neutral Sentiment: Long-term growth investment remains substantial: McDonald’s is reportedly committing $8.5 billion to its NEXT strategy, including restaurant and operating upgrades. However, management expects traffic to remain flat, while global comparable sales recently grew only about 1%, making the payoff from the investment uncertain. McDonald’s Bets $8.5 Billion on NEXT as Its CEO Warns Traffic Will Stay Flat
• Neutral Sentiment: Marketing strategy is changing: McDonald’s is ending its 32-year FIFA World Cup sponsorship and shifting spending toward company-owned intellectual property. The move could improve marketing efficiency and control, but it also removes a major global brand platform. McDonald’s Ends 32-Year FIFA World Cup Sponsorship
• Negative Sentiment: FY2027 earnings estimates were reduced: Erste Group Bank cut its EPS forecast for McDonald’s, a potentially negative signal for profit growth expectations and valuation support. The revision is particularly relevant as the company faces persistent traffic and affordability pressures. FY2027 EPS Estimates for McDonald’s Cut by Erste Group Bank
• Negative Sentiment: Value strategy may pressure margins: McDonald’s is adjusting its discount strategy to emphasize broader value rather than only its cheapest offerings. While this may protect customer traffic, heavier promotions could weigh on average checks and restaurant profitability. McDonald’s Changes Its Discount Strategy

McDonald’s Company Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.