Key Takeaways:
- McDonald's and Yum! Brands remain resilient in the face of tariffs, thanks to their franchise model.
- Analysts project a moderate upside for McDonald's stock, with most recommending an "Outperform" rating.
- GuruFocus estimates a slight downside, suggesting the stock is near fair value based on historical data.
In the fast-food industry, McDonald's (MCD, Financial) and Yum! Brands continue to garner investor attention. Despite the challenges posed by tariffs, their franchise-based business models exhibit robust resilience. This industry sector may gain traction with consumers seeking budget-friendly options as economic uncertainties loom. Meanwhile, companies like Chipotle and Cava are encountering hurdles tied to different operational structures.
Wall Street Analysts' Forecast
According to price targets set by 31 analysts, McDonald's Corp (MCD, Financial) is expected to reach an average target price of $330.81 over the next year. These projections span a high of $360.00 and a low of $280.00, indicating a potential upside of 3.94% from the current trading price of $318.27. For detailed projections, explore the McDonald's Corp (MCD) Forecast page.
Evaluating brokerage firm consensus, McDonald's earns an average recommendation score of 2.1 from 39 firms, reflecting an "Outperform" status. The rating system varies from 1 to 5, where 1 represents a Strong Buy and 5 indicates a Sell.
From a valuation standpoint, GuruFocus's GF Value estimates McDonald's Corp (MCD, Financial) will reach $309.55 within a year, pointing to a slight downside of 2.74% from its current price. The GF Value represents the stock's fair trading price, derived from historical value multiples, past growth, and future performance forecasts. Access more in-depth analysis on the McDonald's Corp (MCD) Summary page.
