McDonald’s Corporation (MCD) traded higher on Thursday after reporting a sharp upturn in comparable sales in Q4. On Wall Street, analysts were divided on whether the company has fully turned the corner or faces a tricky road ahead.
Morgan Stanley analyst Brian Harbour said the next big cycle for the company is already unfolding, revolving around faster unit growth and probably another remodel wave. The renewed focus on food quality, taste, and range is considered strategic since the chain’s most credible competitors to fend off are no longer traditional burger QSRs, but Dutch Bros (BROS), Raising Cane’s, In-N-Out, and other specialist concepts growing stores and taking QSR market share.
Oppenheimer analyst Brian Bittner highlighted that McDonald’s (MCD) underlying sales indicators are strengthening, and market share with low-end consumers is reversing to a tailwind. Looking ahead, Bittner and his team see multiple levers for intriguing sales upside throughout 2026. “We raise our assumptions for core fundamentals,” wrote Bittner. Oppenheimer kept its Outperform rating on MCD in place.
Bank of America analyst Sara Senator noted the firm was encouraged by the restaurant giant’s strong topline performance, but the need for continuous reinvestment as well as the more stable franchise model is considered capping EPS upside. The firm kept its Neutral rating on McDonald’s (MCD).
Mizuho Securities analyst Nick Setyan thinks it is too early for investors to celebrate a U.S. comparable sales inflection. “We are skeptical that Q4’s comp strength is sustainable beyond Q1 and continue to believe U.S. SSS growth visibility for the remainder of ’26 remains limited. We also believe risk to 2026 margin expectations remains elevated,” warned Setyan. Mizuho lowered its 2026 EPS estimate on MCD to $13.14 from $13.31 to reflect forward margin commentary.
On Seeking Alpha, analyst Luca Socci sees MCD as protection in a bear market but trading with a lofty PEG ratio.
Shares of McDonald’s (MCD) were up 2.2% in late morning trading.