UBS on McDonald's (MCD): 'Pullback and 2H US Sales Setup Attractive'

UBS analyst Dennis Geiger reiterated a Buy rating and $350.00 price target on McDonald's (NYSE: MCD).

The analyst comments "Share pullback and encouraging 2H US sales catalysts support improved setup. We find MCD shares attractive following the recent pullback (-11% since 5/19), with a positive 2H US comp setup as a catalyst and reasonably limited downside (~21x ’26 EPS) for a quality business positioned for multiyear market share gains. While we recognize defensives are out of favor and QSR sales trends (and stocks) remain pressured, we anticipate share gains as US and International trends improve, particularly if the risk-on trade cools. MCD appears well positioned to deliver solid sss in 2H25 driven by new products, value initiatives, and marketing plans that should resonate, even as lower and middle income spending pressure could linger. We anticipate US sss will strengthen over the coming quarters, w/ International efforts to support improvement post 1Q, and a favorable longer-term setup, including accelerating unit growth to 4-5%, G&A leverage, and an earnings growth profile of at least +HSD%."

For an analyst ratings summary and ratings history on McDonald's click here. For more ratings news on McDonald's click here.

Shares of McDonald's closed at $285.63 yesterday.

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