McDonald's (MCD) PT Raised to $330 at RBC Capital

RBC Capital analyst Logan Reich raised the price target on McDonald's (NYSE: MCD) to $330.00 (from $320.00) while maintaining a Sector Perform rating.

The analyst commented: "Solid 4Q against a high bar, FY26 guidance is mixed; MCD's 4Q print was solid but up against an elevated buy-side bar. Key positives were: 1) Value strategy appears to be driving incremental transactions, market share, and improving value & affordability scores where momentum appeared to continue into January. 2) Both IOM & IDL SSS grew ~200 bps faster than consensus where '26 Street estimates likely move higher. 3) New beverage lineup will be rolling out to US stores later this year following 500 store test that was above internal expectations. 4) FY26 net unit growth guidance of 2,100 came in ahead of Street's 1,978 estimate -- management reiterated company on track to reach 50k restaurants by end of '27. The less positives were: 1) Large portion of US 4Q upside drivers are not recurring where management guided all three segments' SSS growth to decelerate from 4Q. Management estimated weather will be a ~100 bps headwind in the US in Q1. WEN's anticipated SSS declines could also have been a material non-recurring benefit to 4Q SSS growth. 2) FY26 FCF conversion from net income was guided to lowmid 80% range vs. Street at 88.5% coming in and capex was guided to $3.7-3.9b which is 12.2% above the Street at the midpoint. 3) Implied EVM sales could have been below prior management expectations given MCD contributed $70m in EVM franchisee support in 4Q vs. ~$75m guidance last quarter (6.7% below prior guidance), though unclear if the guidance was an approximation. Adjusting estimates and raising PT to $330 on slightly higher EPS estimates but remain Sector Perform as we look for further evidence of sustained US SSS growth improvements."

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