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Valued at a market cap of $217.2 billion, McDonald's Corporation (MCD) is a global leader in the quick-service restaurant industry. The company operates and franchises restaurants under the McDonald’s brand, offering a variety of food and beverages across the U.S. and international markets.
Shares of the Chicago, Illinois-based company have underperformed the broader market over the past 52 weeks. MCD stock has returned 13.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 19.3%. Moreover, shares of McDonald's are up nearly 5% on a YTD basis, compared to SPX’s 8.4% gain.
Focusing more closely, the fast-food giant stock has also lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 28.7% increase over the past 52 weeks.
McDonald’s shares rose nearly 3% on Aug. 6 after Q2 2025 results beat expectations, with adjusted EPS of $3.19 and revenue of $6.8 billion. Global same-store sales grew 3.8%, above the expected, driven by strong demand in the U.S. and international markets, along with a 5.6% jump in its developmental licensed segment. Affordable meal bundles, promotions like the $5 meal deal and “Minecraft” Happy Meals, and new menu items such as McCrispy Chicken Strips helped attract budget-conscious diners and boost traffic.
For the fiscal year ending in December 2025, analysts expect MCD’s EPS to grow 5.2% year-over-year to $12.33. The company's earnings surprise history is promising. It beat or met the consensus estimates in the last four quarters.
Among the 33 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” 17 “Holds,” and one “Strong Sell.”
This configuration is less bullish than three months ago, with 17 “Strong Buy” ratings on the stock.
On Aug. 7, Piper Sandler raised its price target on McDonald’s to $325 with a “Neutral" rating, citing solid quarterly results and management’s reaffirmed outlook for accelerating U.S. sales in the year’s second half.
As of writing, the stock is trading below the mean price target of $337.07. The Street-high price target of $373 implies a potential upside of 22.6% from the current price levels.
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.
