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Valued at a market cap of $223 billion, McDonald's Corporation (MCD) owns, operates, and franchises restaurants under the McDonald's brand worldwide. Headquartered in Chicago, Illinois, the company offers food and beverages, including hamburgers and cheeseburgers, chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages.
Shares of the global foodservice retailer have outperformed the broader market over the past 52 weeks. MCD has returned 13.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.9%. Moreover, shares of MCD are up 7.6% on a YTD basis, compared to SPX’s marginal decline.
However, MCD has lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 19.3% surge over the past 52 weeks.
Shares of McDonald’s fell 1.9% after it released its Q1 2025 results on May 1. Quarterly revenue declined 3.5% year-over-year to $5.9 billion. Operating income dropped 3.2% from the prior-year quarter to $2.6 billion, impacted by lower margins in both franchised and company-operated segments. However, its adjusted EPS came in at $2.67, slightly surpassing analysts’ estimate of $2.64.
For the current fiscal year, ending in December 2025, analysts expect MCD's adjusted EPS to increase 4.4% year-over-year to $12.23. The company's earnings surprise history is mixed. It beat or met the consensus estimates in three of the past four quarters while missing on another occasion.
Among the 34 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 18 “Strong Buy” ratings, two “Moderate Buys,” and 14 “Holds.”
This configuration is slightly less bullish than three months ago, with 19 “Strong Buy” ratings on the stock.
On May 6, BMO Capital analyst Andrew Strelzik raised MCD's price target to $345 while maintaining an “Outperform” rating.
As of writing, McDonald’s is trading below the mean price target of $335.77. The Street-high target of $370 suggests an 18.6% upside potential.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
