Argus on Thursday raised its recommendation on McDonald’s (NYSE:MCD) from Hold to Buy and established a new price objective of $380.00. That target implies substantial upside from the most recent trading level of $332.08, with the share price already hovering close to a 52-week high of $333.38. InvestingPro data shows McDonald’s currently trades at a price-to-earnings ratio of 27.05.
The research house pointed to McDonald’s efforts to appeal to budget-conscious consumers through value menus and promotional campaigns as a central rationale for the upgrade. Argus emphasized that the company’s brand investments and its growing digital platform should support comparable-sales growth that outpaces peers over coming periods.
In noting shareholder-friendly capital allocation, the firm highlighted McDonald’s 49-year record of dividend increases and characterized the company’s market position as defensive, saying these attributes contribute to the current value proposition for investors. Additional elements cited by Argus in favor of the long-term case include the chain’s geographic diversification, ongoing share repurchase programs and loyalty initiatives intended to deepen customer engagement.
Other analysts have moved in a similar direction after McDonald’s most recent results. The company reported robust fourth-quarter earnings and global same-store sales that exceeded expectations, prompting a string of revised price targets.
- UBS raised its price target to $365, attributing the change to strong global sales and successful strategic initiatives.
- RBC Capital lifted its target to $330 and pointed to solid operational performance and an effective value strategy.
- Piper Sandler set a $325 target after noting above-consensus same-store sales across all segments, with particularly strong results in the International Operated Markets and International Developmental Licensed segments.
- KeyBanc maintained an Overweight rating and a $340 target, underscoring McDonald’s value strategy and marketing capabilities.
- TD Cowen kept a Hold stance with a $320 target, while acknowledging better-than-expected same-store sales, notably in the U.S. and International Operated Markets.
Taken together, these analyst updates reflect a generally constructive outlook among equity analysts: McDonald’s strategic initiatives and emphasis on value offerings are being credited with driving recent growth and underpinning the higher price targets put forth by several firms.