/McDonald)
Valued at $220.3 billion by market cap, Chicago, Illinois-based McDonald's Corporation (MCD) owns, operates, and franchises over 38,000 restaurants in more than 100 countries across the globe. McDonald’s offerings include burgers, sandwiches, fries, shakes, desserts, soft serve cones, cookies, and more.
Companies worth $200 billion or more are generally described as "mega-cap stocks," McDonald’s fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the restaurant industry. McDonald’s operates as the largest QSR chain in the world.
McDonald’s touched its all-time high of $317.90 on Oct. 21, 2024, and is currently trading 3% below that peak. MCD has soared 4.5% over the past three months, outperforming the industry-focused AdvisorShares Restaurant ETF’s (EATZ) 2% dip during the same time frame.
However, over the longer term, McDonald’s has notably lagged behind other restaurant stocks. MCD gained nearly 4.5% over the past 52 weeks, compared to the EATZ’s 22.6% surge during the same time frame.
To confirm the recent uptrend, MCD has remained above its 50-day moving average since early February 2025 and above its 200-day moving average since mid-August 2024.
Despite observing a drop in earnings and revenues, McDonald’s stock surged 4.8% after the release of its Q4 results on Feb. 10. Due to a 6.6% year-over-year decline in revenues from franchised restaurants to $2.3 billion, McDonald’s overall topline declined 28 basis points compared to the year-ago quarter to $6.4 billion, missing the Street’s expectations by 1.4%. Meanwhile, its non-GAAP EPS dropped 4.1% year-over-year to $2.83. On a positive note, MCD’s earnings matched the consensus estimates.
The topline performance was primarily impacted by to decline in average checks in the U.S. leading to a 1.4% dip in U.S. comps. However, the company observed a slight improvement in international comps which mitigated the drop in revenues.
Despite its underperformance compared to the broader restaurant industry, McDonald’s has notably outperformed its peer Chipotle Mexican Grill, Inc.’s (CMG) 1% uptick over the past 52 weeks.
Among the 24 analysts covering the MCD stock, the consensus rating is a “Moderate Buy.” Its mean price target of $330.84 represents a 7.3% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
