McDonald’s could present itself as a better buy versus other fast food peers, according to Citi. The bank raised its price target on the fast food giant to $381 per share from $373, implying a new upside of 26%. Analyst Jon Tower also maintained his buy rating for the stock. His new target is the highest on Wall Street among analysts covering the stock. Tower pointed to tailwinds for McDonald’s in the short term and over the long run. “We see the [near-term] trade as straightforward — own for an aggressive value push (including outsized marketing spend), easy compares, and associated room for P/E expansion,” he wrote. “However, we see the story gaining steam into ’26 as MCD leans into its next round of multi-year growth drivers (beverages, particularly energy, a remodel cycle, accelerating unit growth), while accelerating share losses at peers/the risk of the negative franchisee feedback loop take hold and offer MCD dollars to potentially vacuum up.” MCD YTD mountain MCD YTD chart McDonald’s has also committed to sustaining its nationally advertised price points by effectively subsidizing net profit loss in areas with higher costs, Tower wrote. This could give the company a significant leg up over its peers. “They have not committed to anything beyond this, but we believe it could present a new construct that MCD could uniquely execute going forward,” he added. “Peers are seeing HSD (if not LDD declines) in traffic — levels not seen since peak GFC pain. It is hard to see how this doesn’t mean additional unit closures that further accelerate a negative franchisee feedback loop and leave significant dollars for MCD to vacuum up in the wake of closures.” Shares of McDonald’s have added 5% this year. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
Citi raises price target on McDonald’s to highest on Wall Street, calls for more than 25% upside
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