UBS raised its target price for McDonald’s Corporation (NYSE:MCD) to $365.00 from $350.00 on Thursday and reiterated a Buy rating on the shares. At the time UBS issued the update, the new target implied approximately an 11% upside relative to McDonald’s then-current trading price of $328.22, which was close to the company’s 52-week high of $328.06.
The increase in UBS’s price objective followed McDonald’s reported fourth-quarter results. UBS highlighted strong global same-store sales and noted that the results reflected traction from the company’s strategic initiatives. The broker expressed the view that the underlying momentum should persist into 2026 even as macroeconomic pressures remain.
McDonald’s produced $26.26 billion in revenue over the last twelve months and operated with a gross profit margin of 57.42% during the same period, figures UBS used in assessing the company’s performance and outlook.
UBS signaled confidence in management’s execution of plans intended to drive customer engagement and market share. The firm pointed to value-oriented offerings, targeted marketing, and menu innovation as likely contributors to continued customer resonance and market share gains, including in the United States.
InvestingPro classifies McDonald’s as a major participant in the Hotels, Restaurants & Leisure industry and attributes a market capitalization of $234.8 billion to the company. InvestingPro also notes that shares are trading above its Fair Value estimate and provides 11 additional ProTips and in-depth analysis on the stock for subscribers seeking further detail.
UBS drew attention to McDonald’s accelerating pace of new store openings. The firm expects global new-store growth of 4.6% in 2026 and notes that the company is on a path to reach 50,000 restaurants by the end of 2027. UBS estimates that the chain will deliver over 5% net unit growth in 2027, attributing the expansion to attractive returns on openings and broad brand strength.
Supporting the expansion thesis, UBS cited McDonald’s return on assets of 14.41% and a cash return on invested capital of 0.14. These metrics were presented as evidence of the company’s ability to generate returns from its asset base and reinvestment activity.
On the profit outlook, UBS modestly reduced its 2026 earnings-per-share forecast to reflect several below-the-line items. Despite that adjustment, the firm raised its operating profit projection for 2026, indicating increased confidence in McDonald’s sales trajectory for the year.
Over the last twelve months, McDonald’s diluted earnings per share stood at $11.72. Analysts are projecting diluted EPS of $12.18 for fiscal 2025. The company also maintains a long record of shareholder distributions, recording 50 consecutive years of dividend increases and a current dividend yield of 2.3%.
For investors seeking more comprehensive research, InvestingPro offers McDonald’s Pro Research Report as part of its library of over 1,400 detailed company reports that provide in-depth financial and operational analysis.
Other broker activity followed McDonald’s fourth-quarter release. Truist Securities raised its price target to $370 while retaining a Buy rating, citing stronger-than-expected same-store sales and adjusted EBITDA. KeyBanc Capital Markets reiterated an Overweight rating with a $340 price target, pointing to the company’s effective value strategy and marketing that were linked to market share gains.
RBC Capital increased its target to $330, referencing the company’s solid fourth-quarter performance and successful value strategy. Piper Sandler adjusted its price target to $325, observing that U.S. same-store sales were in line with expectations while other segments outperformed. TD Cowen kept a Hold rating with a $320 price target, acknowledging robust same-store sales across all business segments.
Analyst revisions and target adjustments from multiple firms reflect the combination of reported fourth-quarter strength and McDonald’s stated growth initiatives, as noted by the analyst community.
Summary of key company metrics referenced in analyst commentary:
- Last twelve months revenue: $26.26 billion
- Gross profit margin: 57.42%
- Return on assets: 14.41%
- Cash return on invested capital: 0.14
- LTM diluted EPS: $11.72
- Analysts’ fiscal 2025 EPS estimate: $12.18
- Market capitalization (InvestingPro): $234.8 billion
- Dividend history: 50 consecutive years of increases; current yield 2.3%
The cluster of analyst updates and McDonald’s reported results underscore the firm’s current strategic emphasis on value propositions, marketing, menu innovation, and an accelerated unit-growth plan. Market watchers and investors will likely track North American performance alongside international segments to gauge whether the momentum described by brokers sustains through 2026 and into the planned unit-expansion window through 2027.