Shares of McDonald’s Corp MCD edged higher in early trading on Tuesday, despite reporting a decline in fourth-quarter revenues.
The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.
- Morgan Stanley analyst Brian Harbour reiterated an Overweight rating, while raising the price target from $336 to $340.
- BMO Capital analyst Andrew Strelzik maintained an Outperform rating, while lifting the price target from $335 to $340.
- KeyBanc Capital Markets analyst Eric Gonzalez reaffirmed an Overweight rating, while raising the price target from $320 to $335.
- TD Cowen analyst Andrew Charles maintained a Hold rating and price target of $300.
- Wedbush analyst Nick Setyan reiterated an Outperform rating and price target of $330.
Check out other analyst stock ratings.
Morgan Stanley: McDonald’s delivered better-than-feared results, which was enough to drive the stock, Harbour said in a note. Although US comps improved sequentially in December, the trends were sluggish in January, he added.
The full recovery from the E.coli episode is expected by the beginning of the second quarter, the analyst stated. While industry challenges persist, the company’s outlook is now “less gloomy,” he further wrote.
BMO Capital Markets: McDonald’s reported fourth-quarter earnings of $2.83 per share, which slightly missed the consensus of $2.85 per share, Strelzik said. “Lower company margins coupled with unfavorable other operating expense and G&A more than offset stronger franchise margins and international-led comp upside,” he wrote.
Management indicated that US comps had improved sequentially in January, despite sluggish global industry trends, the analyst stated. McDonald’s is planning to enhance its international value programs in the first quarter to improve its competitive positioning, he added.
KeyBanc Capital Markets: McDonald’s fourth-quarter results included better-than-expected same store sales growth internationally, while the US market continued to pressure revenues and margins, Gonzalez said. US traffic growth was positive during the fourth quarter, “outpacing industry peers,” as the company “leaned more heavily into value offerings to win back guests following the E. coli outbreak,” he added.
Same store sales trends are likely to remain volatile in the first quarter due to weather conditions and softness in industry growth, the analyst stated. “But we believe innovation and marketing will drive improvement in check growth as the year progresses,” he further wrote.
TD Cowen: Although US comps missed expectations, this was mainly due to a decline in average spending by customer per visit, Charles said. McDonald’s international sales were better than expected, he added.
The initial 2025 guidance reflects higher-than-expected capital expenditure and interest expense, the analyst stated. “Globally, the company expects to open ~2,200 restaurants in 2025 (600 company, 1,600 licensed), which are expected to contribute slightly over 2% to systemwide sales growth, ex FX,” he further wrote.
Wedbush: The company noted softness in same store sales growth in the first quarter, Setyan said. He added, however, that management highlighted positive guest counts and expressed confidence in menu innovation and marketing support driving average check per customer and accelerating same store sales growth as the year progresses.
With easier year-on-year comps starting in the second quarter, same store sales growth is possible, the analyst stated. He lowered the earnings estimate for 2025 from $12.39 per share to $11.88 per share.
Price Action: Shares of McDonald’s had risen by 0.78% to $310.73 at the time of publication on Tuesday.
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
