McDonald’s Corporation (MCD)
Citigroup (Analyst Rank#6) has raised its price target on McDonald’s Corporation (NYSE: MCD) from $334 to $336, maintaining a Buy rating. Analyst Jon Tower’s decision reflects confidence in McDonald’s long-term growth potential, and expects McDonald’s Q4 comparable sales to hit a low point in recent history. However, the firm anticipates a rebound as McDonald’s increases national value promotions and introduces new menu items to drive growth.
Analyst and Market Sentiment
According to a consensus forecast from 22 analysts, the average 12-month target price for McDonald’s is $314.52, with a Strong Buy rating. Meanwhile, Stock Target Advisor has assigned a Slightly Bullish outlook based on a combination of 9 positive and 5 negative signals.
At the last market close, McDonald’s stock was priced at $293.09. Over the past week, the stock has gained +4.32%, though it has seen a slight decline of -0.18% over the past month and a marginal increase of +0.28% over the past year.
Factors Driving Citigroup’s Optimism
- Resilient Business Model – McDonald’s benefits from a globally recognized brand, an extensive franchise network, and a menu pricing strategy that allows it to thrive even in challenging economic conditions.
- Menu Innovation & Digital Growth – The company has successfully introduced new menu items, expanded delivery services, and enhanced its digital presence, increasing customer engagement.
- Cost Management & Margin Expansion – Despite inflationary pressures, McDonald’s has maintained profitability through strategic pricing and supply chain efficiency.
- Global Expansion & Market Penetration – The company continues to expand internationally, especially in high-growth markets, reinforcing long-term growth prospects.
Risks to Consider
- Macroeconomic Uncertainty – Rising interest rates and economic slowdown could impact consumer spending.
- Regulatory & Labor Challenges – Changes in wage laws and food safety regulations could affect operational costs.
- Competitive Pressure – Fast food rivals and new entrants may challenge McDonald’s market dominance.
AI-Powered Stock Analysis
Stock Target Advisor-AI’s analysis is Slightly Bullish, based on 9 positive signals and 5 negative signals. Key strengths include consistent revenue growth, strong brand positioning, and robust cash flow generation, which support long-term stability. However, challenges such as higher operational costs, macroeconomic pressures, and potential consumer spending shifts contribute to some caution among analysts.
Looking ahead, analysts expect McDonald’s to benefit from menu expansions, pricing strategies, and digital investments, helping sustain long-term earnings growth. Investors considering an entry point should weigh valuation concerns against the company’s ability to drive profitability through strategic initiatives and global expansion.
Outlook
Citigroup’s increased price target suggests confidence in McDonald’s ability to navigate market challenges while delivering steady growth and shareholder value. However, investors should watch for short-term volatility and macroeconomic trends that may impact performance.

STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.