RBC Capital raised its price target on McDonald’s (NYSE:MCD) to $330.00 from $320.00 and retained a Sector Perform rating on the shares. The firm’s revised target equates to a modest approximately 2.1% upside versus McDonald’s then-current share price of $323.21, with the stock trading close to a 52-week high of $328.06.
Quarterly performance and strategy
RBC described McDonald’s fourth-quarter showing as "solid" against what it called "an elevated buy-side bar." The firm emphasized that the company’s value-oriented strategy appears to be stimulating additional transactions, helping recover market share and lifting measures of perceived value and affordability. RBC noted that those positive dynamics were carrying into January.
According to InvestingPro data cited in the analysis, 15 analysts have raised their earnings estimates for the forthcoming period, reflecting increasing confidence in McDonald’s approach despite the stock’s relatively high price-to-earnings ratio of 27.6.
International same-store sales and potential estimate revisions
RBC flagged that both the International Operated Markets (IOM) and International Developmental Licensed Markets (IDL) reported same-store sales growth that ran approximately 200 basis points ahead of consensus expectations. The firm suggested those stronger-than-expected results could prompt upward revisions to 2026 Street estimates.
Franchise expansion and product rollout
Management’s guidance for net new restaurant openings also exceeded Street expectations. The company guided to 2,100 net new units in fiscal 2026, above the Street projection of 1,978, and reiterated its plan to reach 50,000 restaurants by the end of 2027. In product development, McDonald’s plans to introduce a new beverage lineup to U.S. restaurants later this year after a 500-store trial that surpassed internal expectations.
Risks and near-term headwinds
RBC also drew attention to less favorable aspects of the company’s performance. The firm noted that a substantial portion of U.S. fourth-quarter upside drivers were non-recurring, and management is guiding for deceleration in same-store sales growth across all three geographic segments from fourth-quarter levels. Additionally, weather is expected to impose roughly a 100 basis point headwind on U.S. same-store sales in the first quarter.
Valuation, dividends and analyst adjustments
InvestingPro analysis referenced by RBC indicated McDonald’s is slightly overvalued relative to its calculated Fair Value, while still offering a stable dividend yield of 2.3% and a track record of 51 consecutive years of dividend payments. The company is listed among more than 1,400 U.S. equities covered by comprehensive Pro Research Reports.
McDonald’s recent fourth-quarter 2025 results exceeded Wall Street expectations on several metrics. The company reported earnings per share of $3.12, beating the consensus estimate of $3.04, a performance RBC and others attributed to robust global comparable sales. Same-store sales outperformance in both IOM and IDL segments reinforced the stronger-than-expected top-line backdrop.
Following the quarterly release, a number of brokerages adjusted their targets and ratings: Piper Sandler raised its price target to $325 while keeping a Neutral rating; Truist Securities boosted its target to $370 and retained a Buy rating; Barclays increased its target to $380 and maintained an Overweight rating. KeyBanc Capital Markets reiterated an Overweight rating with a $340 target, and BMO Capital Markets reaffirmed an Outperform rating with a $360 target. RBC’s update sits alongside these shifts as investors weigh the durability of McDonald’s momentum against near-term and non-recurring factors.
Conclusion
RBC’s move to lift the price target to $330 reflects confidence in McDonald’s near-term execution, particularly around value-led initiatives and international same-store sales strength. At the same time, the firm preserved a neutral Sector Perform view owing to concerns about the sustainability of some U.S. gains and a projected slowdown in comparable-store growth early in the fiscal year.