McDonald's (NYSE:MCD) Stock Rating Reaffirmed as "Buy" by BTIG Research

Key Points

• BTIG Research reaffirmed a “Buy” rating on McDonald’s, maintaining a $295 price target—implying approximately 18.7% upside from the prior close. The broader analyst consensus is “Moderate Buy,” with an average target of $295.64.
• McDonald’s reported quarterly EPS of $3.38, beating expectations of $3.32, while revenue rose 3.7% year over year to $7.10 billion but slightly missed estimates.
• The stock opened at $248.49, with a market capitalization of about $175.8 billion; institutional investors own approximately 70.3% of outstanding shares.

McDonald's (NYSE:MCD - Get Free Report)'s stock had its "buy" rating restated by BTIG Research in a report released 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 18.72% from the company's previous close.

Several other brokerages also recently weighed in on MCD. Piper Sandler set a $286.00 price target on shares of McDonald's in a report on Tuesday, August 4th. UBS Group reiterated a "buy" rating on shares of McDonald's in a report on Monday, October 19th. Rothschild & Co Redburn cut their price target on shares of McDonald's from $306.00 to $285.00 in a report on Wednesday, August 26th. Bank of America increased their price target on shares of McDonald's from $339.00 to $343.00 in a report on Wednesday, August 5th. Finally, Freedom Capital upgraded shares of McDonald's from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, McDonald's presently has an average rating of "Moderate Buy" and an average target price of $295.64.

McDonald's Stock Up 0.0%

MCD opened at $248.49 on Monday. McDonald's has a 52-week low of $229.20 and a 52-week high of $341.75. The company has a market cap of $175.84 billion, a P/E ratio of 20.19, a price-to-earnings-growth ratio of 2.83 and a beta of 0.44. The firm's 50-day moving average price is $249.43 and its 200-day moving average price is $269.68.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%. The firm had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion. During the same period last year, the business posted $3.19 earnings per share. The company's revenue for the quarter was up 3.7% compared to the same quarter last year. On average, research analysts anticipate that McDonald's will post 12.84 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. GKV Capital Management Co. Inc. purchased a new position in shares of McDonald's during the 1st quarter worth $33,000. Burkett Financial Services LLC increased its position in shares of McDonald's by 2,312.5% during the 3rd quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant's stock worth $45,000 after purchasing an additional 185 shares during the last quarter. POM Investment Strategies LLC increased its position in shares of McDonald's by 46.2% during the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant's stock worth $47,000 after purchasing an additional 55 shares during the last quarter. Westfuller Advisors LLC increased its position in shares of McDonald's by 140.0% during the 2nd quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant's stock worth $49,000 after purchasing an additional 105 shares during the last quarter. Finally, Financial Life Planners acquired a new stake in shares of McDonald's during the 1st quarter worth about $51,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s is bringing back popular menu items, including the McRib and another highly requested sandwich. Limited-time offerings can support traffic, customer engagement and near-term sales, although the financial impact is likely modest. McDonald’s Just Brought Back One of Its Most Popular Sandwiches Ever McDonald’s Confirms the McRib Is Returning
• Neutral Sentiment: The company is changing its discount strategy to emphasize broader value rather than its cheapest menu items. The approach could improve margins, but risks disappointing budget-conscious customers and pressuring traffic if perceived value weakens. McDonald’s Changes Its Discount Strategy
• Neutral Sentiment: Coverage of McDonald’s coffee pricing places the chain among major value-focused competitors. Competitive pricing may help defend beverage traffic, but it also underscores ongoing pressure to balance affordability with restaurant margins. Coffee Price Check: Starbucks, Dunkin’, 7 Brew, Wawa, and McDonald’s
• Negative Sentiment: Erste Group Bank lowered its fiscal 2027 earnings-per-share estimate for McDonald’s, signaling softer expectations for future profitability and potentially adding pressure to valuation. FY2027 EPS Estimates for McDonald’s Cut by Erste Group Bank
• Negative Sentiment: Management reportedly expects restaurant traffic to remain flat while McDonald’s invests approximately $8.5 billion in its NEXT strategy. The spending may support long-term modernization, but muted traffic and substantial capital commitments could limit near-term returns. McDonald’s Bets $8.5 Billion on NEXT as CEO Warns Traffic Will Stay Flat
• Negative Sentiment: McDonald’s is ending its 32-year FIFA World Cup sponsorship and redirecting marketing resources toward company-owned intellectual property. The move could improve marketing efficiency, but losing a globally prominent platform may reduce brand exposure during a major sporting event. McDonald’s Ends 32-Year FIFA World Cup Sponsorship

About McDonald's

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.