McDonald's (MCD) PT Raised to $300 at Bernstein; 'Back to (Food) Safety'

Bernstein SocGen Group analyst Danilo Gargiulo raised the price target on McDonald's (NYSE: MCD) to $300.00 (from $290.00) while maintaining a Market Perform rating.

The analyst commented: "Back to (food) safety; McDonald's 4Q24 results were better than feared (global SSS of +0.4% vs -0.9% cons.) and offered visibility of improving performance in International markets (+0.1% SSS in IOM, +4.1% IDL) that more than offset the weaker US sales. While we marginally increase our sales expectations for 2025, we do not expect significant improvement on Operating Margins, amid an average check that trails the growth in guest count, potential impact of tariffs and continued macro pressures in some International Operated Markets. Simply put: gaining market share may not be enough. We also believe that the reduced FCF conversion and the lack of SG&A leverage on improving sales trends should eventually warrant a lower multiple, even if these dynamics do not impact the stock narrative in the near-term."

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