Strong same-store sales growth and enhanced visibility on value propositions are among the highlights of McDonald's (NASDAQ:MCD) fourth-quarter financial results for analysts, with the company beating both revenue and earnings per share estimates.
The McDonald's Analysts
- TD Cowen analyst Andrew Charles maintained a Hold rating on McDonald's stock with a price target of $320.
- BTIG analyst Peter Saleh reiterated a Buy rating and raised the price target from $360 to $370.
TD Cowen: McDonald's fourth quarter results represent a "strong end to 2025," Charles said in a new investor note.
The analyst cautions that higher interest, higher G&A guidance, and higher-than-expected CapEx guidance could be negatives from the quarterly results.
"We are encouraged by better than expected SSS across all 3 segments, led by both IOM & U.S. strength," Charles said.
The analyst said McDonald's should see around 3% U.S. same-store sales growth in 2026, but the results could be more weighted to strength in the first half of the fiscal year.
Charles was also disappointed with Q4 results that didn't include a launch date for the U.S. specialty beverage refresher. The analyst expects the launch to happen in April.
"Looking ahead, management pledged to continue predictable value in what is anticipated to be a challenged low-income consumer backdrop."
BTIG: The fast food company’s U.S. traffic is up thanks to value promotions, Saleh said in a new investor note.
"I'm lovin' it," Saleh said of McDonald's Q4 results.
The analyst said McDonald's fourth quarter was its strongest quarter in two years, led by double-digit earnings growth and mid-single digit global same-store sales, along with positive traffic trends in the United States.
"The value strategy is clearly working, as the brand recaptures lost share with lower-income guests and widens its lead over competitors."
Saleh said McDonald's menu innovation could enhance its value proposition and drive additional earnings-per-share growth. The analyst also highlighted McDonald's new unit growth guidance, saying the large number was a bit of a surprise.
"We view McDonald's as one of the strongest restaurant concepts in the world that is now in the early innings of the lower-income consumer recovery."
Price Action
McDonald's stock is up 2% to $329.66 on Thursday. Shares hit a new all-time high of $333.38 earlier in Thursday's trading session. The stock price is up 8.7% year-to-date in 2026.
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