Bernstein analyst Danilo Gargiulo maintained a Hold rating on McDonald’s yesterday and set a price target of $320.00.
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Danilo Gargiulo has given his Hold rating due to a combination of factors influencing McDonald’s current market position. Despite the challenging macroeconomic environment, McDonald’s is expected to enter 2026 with relative strength in the U.S. market. The company’s recent sales performance, particularly the traction gained from the EVM platform and ongoing promotions, suggests an acceleration in traffic recovery. However, there are concerns about the sustainability of franchisee support for these initiatives once McDonald’s financial backing ends, especially if inflationary pressures increase.
Internationally, McDonald’s has shown resilience in gaining market share in various regions, although challenges remain in markets like China. The company’s valuation at a 25x PE multiple, which aligns with its five-year average, reflects a balanced risk/reward scenario. While there is optimism about McDonald’s recovery and ability to capture market share, the uncertain macroeconomic conditions and the need to sustain incremental traffic contribute to the Hold rating.
In another report released yesterday, Stifel Nicolaus also maintained a Hold rating on the stock with a $315.00 price target.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MCD in relation to earlier this year.