McDonald’s Stock Seen as Tasty Buying Opportunity Amid Hopes for Stronger H2 Sales
Analyst Highlights Menu Innovation, Store Hours, and Value Deals as Catalysts
McDonald’s (MCD) shares climbed as investor optimism grew for a second-half sales recovery in the U.S.
- Analyst Dennis Geiger of UBS reiterated his Buy rating and $350 price target, calling McDonald’s a buying opportunity after a recent pullback.
Recent Weakness Sets Stage for Rebound
McDonald’s stock has fallen 9% over the last three months,
- With U.S. same-store sales down 3.6% in Q1—the largest drop since 2020.
- The chain has faced persistent declines in fast-food traffic,
- Driven by higher prices, shifting lower-income customer habits, and increased use of weight-loss drugs curbing demand for fast food.
Reasons for Optimism in the Second Half
Despite recent headwinds, Geiger expects U.S. results to strengthen in the back half of 2025.
- He cited menu innovation, the $5 meal deal, and longer store hours as key growth drivers.
- Geiger’s discussions with franchisees point to optimism for improved performance later this year.
U.S. sales trends reportedly softened after a strong April fueled by the Minecraft movie collaboration,
- But recent data shows same-store sales remain positive,
- With expectations of a further boost in the coming months.
Analyst Consensus: Moderate Buy for MCD
McDonald’s holds a Moderate Buy consensus rating.
- The highest price target for MCD is $364 per share,
- While the consensus price target is $328.89, suggesting a potential 13.01% upside.
