McDonald’s Stock Surges as Analysts Raise Price Targets to New Highs
McDonald's Stock Looks Cheap - Analysts Are Lovin' MCD and Raising Their PTs Analysts have been raising their price targets (PTs) for McDonald's stock (MCD) over the last month. Meanwhile, my price target remains 19% higher at $370. Shorting out-of-the-money puts and calls works here.
2025-12-07T14:30:02+00:00 finance, investing, stock-market
McDonald’s stock has seen a wave of upgraded price targets from analysts in recent weeks. The fast-food giant’s shares closed at $311.23, recovering from lows of $296.37 in November. Investors are now eyeing potential gains as forecasts suggest further growth ahead.
Over the past month, multiple firms have lifted their expectations for McDonald’s (MCD). Guggenheim raised its target to $310, while BMO Capital set a bullish $360 with an 'Outperform' rating. KeyBanc Capital Markets followed with a $335 target and an 'Overweight' call, and Bernstein SocGen Group adjusted its price to $320, maintaining a 'Market Perform' stance. RBC Capital Markets kept its target steady at $320.
Analysts now predict an average price of $352.03, based on 22 estimates—a 4% increase from a month ago. A broader group of 37 analysts places the average target at $331.20, slightly up from $330.10. One projection even suggests a 19% upside, with a $371.30 target using a 29.4x earnings multiple, potentially pushing McDonald’s market cap to $265 billion within a year.
The company’s financial outlook remains strong, with free cash flow expected to reach $9 billion next year. This follows a projected 40% operating cash flow margin. Shareholders stand to benefit from both rising stock prices and consistent dividends, backed by stable margins and robust sales performance.
Trading strategies are also gaining attention. Buying in-the-money call options could offer significant returns if the stock climbs further. Meanwhile, shorting out-of-the-money puts may generate extra income and lower the entry cost if the share price dips.
McDonald’s stock has rebounded from recent lows, with analysts increasingly optimistic about its future. Higher price targets and strong cash flow projections suggest continued growth potential. Investors holding shares may see further gains from both capital appreciation and dividends in the months ahead.
