McDonald’s Stock (MCD): A Sizzling Buy as Analysts Double Down on Golden Opportunity

Wall Street’s appetite for McDonald’s is heating up—and one analyst says it’s time to bite. Here’s why MCD could be the undervalued meal ticket your portfolio craves.

### The Bull Case: More Than Just Fries With That

Forget meme stocks—this blue-chip burger play is serving up real fundamentals. Same-store sales are sizzling, margins are juicy, and that dividend? Let’s just say Ronald McDonald isn’t clowning around with shareholder returns.

### The Secret Sauce: Digital Transformation

Mobile ordering now accounts for over 30% of sales—proof that even boomers will tap-to-pay for a Big Mac. With AI-driven dynamic pricing testing in some markets, those dollar menu days might be numbered (classic finance: automate the upcharges).

### Bottom Line: Happy Meal for Your Portfolio

While crypto bros chase the next Shiba Inu, smart money’s stacking MCD like McNuggets. Because when recession fears loom, nothing’s more resilient than the addictive combo of salt, fat, and shareholder buybacks.

Confident Investing Starts Here:

• Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
• Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter

Open More Hours

Four-star TipRanks-rated analyst Dennis Geiger of UBS said the iconic fast-food chain is likely to post robust same-store sales driven by menu innovation and longer store opening hours.

Geiger, who reiterated his Buy rating and $350 price target on the stock, said that the McDonald’s stock represented a buying opportunity for investors following a recent pullback of the stock.

Indeed, its shares are down 9% over the last three months. Its U.S. same-store sales fell 3.6% in the first quarter, marking the biggest drop since 2020, with fast-food traffic sliding in 40 of the last 43 months.

That’s down to higher prices but also many lower-income customers now choosing to eat at home, as grocery prices are cheaper than eating out. More use of weight-loss drugs has also been blamed on a reduction in the appetite for Big Macs.

Positive Signs

However, although its first-quarter sales were “notably pressured similar to the industry, and lower income consumer weakness is likely a lingering headwind, we believe US results are positioned to strengthen in the second half,” Geiger said. “Our latest franchisee discussions also highlight Optimism for a stronger rest of year.”

Factors including menu innovation, the $5 meal deal and expanded store hours this summer.

“US trends have likely softened since a strong April that was driven by the Minecraft movie collaboration, but we believe the latest same-store sales trends remain positive and should get a boost over the coming months,” Geiger wrote.

Is MCD a Good Stock to Buy Now?

On TipRanks, MCD has a Moderate Buy consensus based on 11 Buy, 14 Hold and 1 Sell ratings. Its highest price target is $364. MCD stock’s consensus price target is $328.89 implying an 13.01% upside.

See more MCD analyst ratings