In a report released today, Andrew Strelzik from BMO Capital reiterated a Buy rating on McDonald’s (MCD – Research Report), with a price target of $345.00.
Andrew Strelzik has given his Buy rating due to a combination of factors that highlight McDonald’s resilience and potential for growth. Despite facing challenges in the first quarter of 2025, with earnings per share meeting expectations amidst softer comparable sales and margin pressures, McDonald’s demonstrated its ability to offset these issues through favorable general and administrative expenses and tax rates. The company is strategically positioned to benefit from improving trends, as evidenced by the positive trajectory seen in April and a steady stream of value and product news.
McDonald’s continues to gain market share even as the quick-service restaurant industry experiences softness, particularly among low and middle-income consumers. The company’s focus on value offerings, such as $5 meal deals and the McValue menu, positions it well to attract cost-conscious customers. Additionally, McDonald’s plans to introduce compelling new products and leverage its marketing strength to drive sales growth. With expectations for margin expansion and a durable business model, McDonald’s is seen as an attractive long-term investment, supported by its strong brand and consistent cash returns to shareholders.
In another report released on May 2, Jefferies also maintained a Buy rating on the stock with a $360.00 price target.