Analyst Sara Senatore from Bank of America Securities reiterated a Hold rating on McDonald’s (MCD – Research Report) and keeping the price target at $312.00.
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Sara Senatore has given her Hold rating due to a combination of factors impacting McDonald’s performance. The company’s fourth-quarter results showed a softer performance in the US market, where same-store sales growth (SSSG) fell short of expectations. This was primarily due to pressure from value offerings, such as the $5 Meal Deal, which affected overall check growth despite positive customer traffic.
On the other hand, McDonald’s international segments showed more promising results. The International Operated Markets (IOM) segment exceeded expectations, suggesting success in initiatives aimed at attracting value-focused consumers. Additionally, the International Development Licensed (IDL) segment outperformed significantly, attributed in part to easing geopolitical tensions. Despite these positives, the McOpCo margin fell short, and higher-than-expected general and administrative expenses indicated less cost savings than anticipated. The 2025 outlook aligns closely with consensus, reflecting limited potential for significant earnings revisions, which supports the Hold rating.
In another report released on February 4, Piper Sandler also maintained a Hold rating on the stock with a $290.00 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MCD in relation to earlier this year.