Fast-food giant McDonald’s (MCD) hopes to entice budget-conscious customers by introducing a new value menu today. This new McValue menu offers a variety of items for customers who aren’t happy about the ever-increasing prices of its food alongside inflation. That’s seen menu item prices increase by 40% since 2019.
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Leading the new McValue is the $5 meal deal introduced last year. While initially only pitched as a limited-time promotion, the deal’s popularity has earned it a permanent place on McDonald’s value menu. Another addition to the McValue menu is a “Buy One, Get One for $1” deal. This is another promotion that was tested last year before its permanent inclusion.
Will the McValue Menu Save MCD Stock?
McDonald’s went through a rough spot in 2024 with constant disappointment in its earnings reports. That weighed on the company’s stock, limiting shares to a 2.96% increase over the last 52 weeks. Investors hope the McValue will bring customers back and with them additional sales and profits.
While the McValue menu launches today, it will be some time before investors see the effects of its introduction. McDonald’s next earnings report is at the end of the month, but it won’t include data from January. Investors are also tepid to today’s news with MCD stock getting a slight 0.52% boost as of this writing.
Is MCD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for McDonald’s is Moderate Buy based on 16 Buy and nine Hold ratings over the last three months. With that comes an average price target of $321.14, a high of $350, and a low of $257. This represents a potential 9.34% upside for MCD shares.
