Truist Securities increased its price target for McDonald’s (NYSE:MCD) to $370.00 from $356.00 on Thursday and kept a Buy rating on the shares. The revised target sits close to the top analyst projection of $380. At the time of the update, McDonald’s was trading at $323.21, near its 52-week high of $328.06.
The upgrade follows McDonald’s fourth-quarter 2025 financials, which the research firm said showed same-store sales and adjusted EBITDA that exceeded expectations. Over the last twelve months the company reported $14.29 billion in EBITDA, supporting a market capitalization of $230.18 billion.
Truist highlighted several company initiatives it views as underpinning resilience amid an uncertain operating environment. Among those, the firm cited an improved value proposition through Extra Value Meals that have been resonating with customers, planned menu innovation across premium burgers, beverages and chicken, and renewed traction from marketing promotions. The research note also referenced InvestingPro data showing McDonald’s trading at a price-to-earnings ratio of 27.6, a figure Truist said reflects investor confidence in these initiatives.
The firm pointed to global momentum as another positive factor. McDonald’s loyalty program, which saw active users climb 24% year-over-year, and technology investments supporting customer engagement and operations were singled out as contributors to growth. The company generated $26.26 billion in revenue over the last twelve months, the note stated.
Truist expressed confidence in McDonald’s outlook, noting strong same-store sales and accelerated development that could support multiple expansion for the stock. The company continues to return capital to shareholders with a 2.3% dividend yield and has maintained dividend payments for 51 consecutive years. InvestingPro data also indicated that 15 analysts have recently revised their earnings estimates upward for the upcoming period.
McDonald’s fourth-quarter 2025 results included earnings per share of $3.12, above the consensus estimate of $3.04. Revenue for the quarter was $7.01 billion, topping the forecast of $6.81 billion. The company’s global comparable sales outpaced expectations, with positive guest counts in the U.S. cited as a driver of the stronger-than-expected performance.
Following these results, other brokerages adjusted their views. Barclays raised its price target to $380 from $372 while maintaining an Overweight rating, and BMO Capital reiterated an Outperform rating with a $360 target, pointing to robust top-line performance. Despite these analyst moves and the better-than-expected quarterly numbers, McDonald’s shares fell in after-hours trading, reflecting some investor concern about future growth prospects.
Overall, Truist’s target increase and the analyst activity that followed reflect a market weighing solid near-term execution against uncertainty about sustained growth. The company’s recent operational metrics, loyalty expansion and technology investments are central to the case made by analysts who have lifted forecasts and targets.
Summary
Truist lifted its McDonald’s price target to $370 from $356 and kept a Buy rating after fourth-quarter 2025 results beat expectations for same-store sales, adjusted EBITDA and revenue. The firm pointed to value menu moves, planned product innovation, loyalty growth and tech investment as drivers for momentum. Other analysts also raised targets, though the stock slipped in after-hours trading.
Key Points
- Truist raised its McDonald’s price target to $370 and maintained a Buy rating; McDonald’s traded at $323.21, near its 52-week high of $328.06.
- Fourth-quarter 2025 results beat estimates: EPS $3.12 versus $3.04 consensus and revenue $7.01 billion versus $6.81 billion forecast; trailing-12-month revenue was $26.26 billion and EBITDA $14.29 billion.
- Sectors impacted include consumer discretionary and restaurants, as analysts highlight loyalty program growth, menu innovation, value offerings and technology investment supporting sales momentum.
Risks and Uncertainties
- Investor concerns about McDonald’s future growth prospects were reflected in after-hours share weakness despite strong quarterly results, posing a near-term market risk.
- The company operates in a broadly uncertain environment, and the durability of current "self-help" sales drivers such as value promos and menu innovation remains a variable that could affect performance in the restaurant sector.
- Although analysts have increased earnings estimates (15 revisions upward per InvestingPro), any reversal in guest counts or slower-than-expected adoption of loyalty and technology initiatives could introduce downside risk for stock multiples and restaurant industry sentiment.