TD Cowen Reiterates Hold Rating on McDonald's (MCD)

TD Cowen analyst Andrew Charles reiterated a Hold rating and $330.00 price target on McDonald's (NYSE: MCD).

The analyst commented: "We continue to believe McDonald's intensified focus on value is not the most organic or profitable method to drive traffic, particularly as mgmt downplayed the benefit to 2H25 U.S. SSS. September is expected to be the peak month of impact to the income stmt from a $40M marketing investment + peak franchisee subsidies, though investments are captured within the 2025 G&A + EBIT margin outlook.

We were surprised management downplayed the impact of the strategy to 2H25 U.S. same store sales, as value perceptions amongst lower income consumers & market share are instead seen as indicators of success. Indeed, management noted the key to same store sales is the incrementality of the offers; this would typically take 1 quarter to achieve though management level-set it's unlikely to be until 2026 given the magnitude of price reductions. In particular, September's $8 Big Mac combo represents a 20%+ price reduction systemwide. Our proprietary survey data suggests McDonald's value perceptions are now in-line with quick service peers after historically exceeding the industry."

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 $315.76 yesterday.

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