Wells Fargo raised the firm’s price target on McDonald’s (MCD) to $350 from $285 and keeps an Overweight rating on the shares ahead of quarterly results. The firm’s +50bps U.S. comp is above Street, with checks offering evidence that McDonald’s returned to share gains in Q3 via pivot to value and successful LTOs. Wells sees acceleration potential in Q4 as compares ease and the innovation spigot keeps flowing. The backdrop is soft, but McDonald’s is winning the burger battle, unit growth is underappreciated, and the firm sees second half of the year/FY25 EPS upside with still palatable price to earnings.
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