McDonald’s Price Target Shifts as 10 Analysts Raise View on Stock (NYSE: MCD)

Fresh off a mild earnings miss, McDonalds' stock (NYSE: MCD) has been given a boost by 10 analysts, as a raft of adjusted price targets came through. There was also a single analyst (Truist) revising their PT downwards, however the firm retain a Buy rating alongside their newly minted $340 target (previously $342).

Earnings came in with revenue of $6.39 billion, with an EPS of $2.83. Markets had been looking for an EPS of $2.83, with revenue of $6.48 billion. The stock has had a solid start to 2025, gaining 6.05% to sit a shade above $310.

Undeterred, Barclays analyst Jeffrey Bernstein reaffirmed an Overweight rating on McDonald's stock, raising their price target to $350. This decision reflects ongoing confidence in the company's financial health and growth prospects.

Other adjustments were also to the upside, with the high of $360 coming from Citi, and the low of $300 from JP Morgan.

In recent financial developments, McDonald's distributed approximately $1.8 billion in cash returns to shareholders. This included $516 million through share repurchases and $1.3 billion in quarterly dividends, offering a yield of roughly 2.4%. The fast-food giant has demonstrated commitment to its shareholders by maintaining dividend payments for 50 consecutive years, with a notable dividend growth of 16.5% over the past twelve months.

Looking ahead, McDonald's plans to increase its capital expenditure to between $3.0 billion and $3.2 billion in 2025, up from the 2024 estimate of $2.5 billion to $2.7 billion. Additionally, the company aims to expand its global presence by opening approximately 2,200 new units in 2025, a slight increase from the 2,100 units planned for 2024.

McDonald's further strengthened its operations by extending its strategic partnership with Cognizant Technology Solutions Corp. This ongoing collaboration is expected to enhance the company's technological capabilities and support its global growth strategy.