KeyBanc has raised its price target for McDonald’s stock to $307, up from $280, while maintaining an Overweight rating. The stock is currently trading at $280.22, marking an 8.9% gain over the past week. Despite this strong performance, InvestingPro analysis suggests the shares may be slightly overvalued relative to their Fair Value estimate.
The firm highlighted progress in key areas, including value offerings and international markets like France. While third-quarter trends were mostly in line with expectations, including a 0.2% decline in the U.S., McDonald’s noted encouraging trends in October. Analysts expect investor focus to remain on U.S. sales trends moving forward.
KeyBanc updated its 2026 earnings per share estimate to $12.98, compared to the company’s trailing twelve months EPS of $12.64. McDonald’s trades at a P/E ratio of 22.67 and offers a 2.75% dividend yield. The company has raised its dividend for 51 consecutive years, a point emphasized by InvestingPro Tips.
In other recent news, McDonald’s reported third-quarter earnings per share of $3.57, surpassing the consensus estimate of $3.38. The earnings beat was driven by gains from refranchising and property sales, as well as reduced operating expenses. However, revenue fell short of estimates due to a smaller company-operated base. Analysts from UBS, BTIG, and BMO Capital maintained or raised their price targets, while Freedom Broker downgraded the stock to Hold due to valuation concerns.