McDonald’s Corporation (MCD) is on watch after BTIG upgraded the restaurant stock to a Buy rating after having it set at Neutral.
Analyst Peter Saleh said franchise checks suggest changes to the restaurant operator’s value/promotions strategy are driving traffic growth on a consistent basis. Notably, Saleh and his team think that the investment in value by the company with the increased discounts on the extra value meals is driving meaningful guest count improvements and shifting consumer perception back to a value leadership position.
While the major winter storm and a lingering deep freeze for a large part of the U.S. impacted January sales, BTIG expects a comparable sales tailwind beginning in February from higher tax refunds and the elimination of taxes on tips and overtime.
Looking ahead, McDonald’s (MCD) is seen as having two major menu product catalysts, with the Big Arch Burger and CosMc’s beverages slated for the first half of the year. “Every conversation we had with franchisees indicates that the CosMc’s beverage test in Denver and the upper Midwest was a wild success, which is broadly expected to launch nationally in 2026. We believe that McDonald’s and its franchise system are currently investing in equipment and small wares to prepare for a spring/summer launch of the CosMc’s beverages to better compete against beverage-first concepts,” updated Saleh.
BTIG reiterated its Buy rating on McDonald’s (MCD) and boosted its price target to $360.
Shares of McDonald’s (MCD) pushed 1.3% higher in premarket trading to $319.48. The 52-week high for the stock is $326.32.