A pivot back toward value will boost shares of McDonald’s going forward, according to Citi. The bank upgraded shares of the fast food giant to buy from hold. Analyst Jon Tower’s target price of $334, up from $311, represents about 16% upside for the stock. Shares of McDonald’s have shed 1% thus far in 2025. Last year, the stock lost around 2%. MCD 1Y mountain MCD 1Y chart This year, a revamped national value platform, coordinated messaging push and new products should boost McDonald’s competitive advantages versus its peers, according to Citi. Already, evidence shows that McDonald’s value pivot has resonated with its customers, with traffic growing following the launch of the $5 Meal Deal in late June, the bank said. “After a year-plus transitioning through cumulative pricing pushback by consumers, we expect 2025 will be a year where MCD fully leans back into its scale advantages, drives share gains in key markets and fuels a recovery in margins/EBIT$ growth,” Tower wrote. “Accelerating relative share gains and a return to 3%+ U.S. comp growth in ’25 will fuel multiple expansion/relative outperformance over the NTM.” McDonald’s advertising capabilities are much larger than those of its rivals, the analyst added. At the same time, direct competitors to McDonald’s such as Burger King and Wendy’s will suffer from internal temporary marketing budget fades this year. Meanwhile, McDonald’s partnership with Krispy Kreme and the relaunch of Snack Wraps will provide additional catalysts for the company. Tower also expects McDonald’s to introduce more collaborations with celebrity meals and collectables going forward. Analysts are somewhat split on the stock. LSEG data shows 25 of 40 analysts covering it rate it as a buy or strong buy. The remaining 15 have a hold rating on McDonald’s.
