McDonald's (MCD) PT Raised to $360 at Evercore ISI

Evercore ISI analyst David Palmer raised the price target on McDonald's (NYSE: MCD) to $360.00 (from $350.00) while maintaining a In Line rating.

The analyst comments "Our view: McDonald’s has improved its combination of value and marketing in several key IOM markets, creating a path to 4%+ 2H SSS growth in IOM. Meanwhile, the US business appears poised for a solid 3Q (EVRe SSS 3%; cons. 2.6%) with the help of $2.99 Snack Wraps before accelerating SSS in 4Q (EVRe 5%; cons. 4%) with a strong marketing calendar, E. coli comparisons, and the potential launch of more compelling national value. The company (and franchisees) appears more determined to solve a post-COVID “$10+ combo meal” reputation—something that could create more consistent US SSS growth in 2026. Given our greater confidence in SSS—and our expectation for improved technology-related earnings growth beginning in 2027 (see page 2)—we are raising our price target from $350 to $360. Our target equates to ~25x our 2026e EPS of $14.24 (+13% YoY; cons. $13.33) and ~23x our 2027e EPS of $15.58 (+9% YoY; cons. $14.49). This is towards the high end of its 5-year P/E range of 22.5x to 26x."

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