McDonald's Corporation shares closed Friday's session at $327.58, marking a 1.36% decline. The pullback followed a recent surge that saw the stock reach an intraday high of $335.67, partially retracing Thursday's 2.74% advance. U.S. markets will be closed Monday for the Washington's Birthday holiday, with trading resuming Tuesday.
Analysts Raise Targets on Growth Drivers
Investment firm Argus upgraded McDonald's stock from Hold to Buy, establishing a $380 price target. The upgrade underscores the company's effective use of value menus to attract cost-conscious consumers and its ongoing digital enhancements. Argus noted these factors should support comparable sales growth that outpaces industry peers.
Separately, Jefferies increased its price target on the fast-food giant to $375, up from a previous $360.
Beverage Expansion and Seasonal Promotions
McDonald's is intensifying its focus on the beverage category. An executive highlighted positive results from a 500-location test of new McCafé drinks, which reportedly increased customer visits across different times of day and boosted average order values. The company estimates the total beverage market opportunity at approximately $100 billion.
Furthermore, McDonald's confirmed the annual return of its seasonal Shamrock Shake and Oreo Shamrock McFlurry, starting February 17 at U.S. restaurants.
Market Context and Risks
Despite Friday's decline, McDonald's outperformed several major restaurant peers, including Starbucks and Yum Brands, which saw larger losses. The broader S&P 500 index edged up 0.05%.
Analysts point to potential execution risks associated with rolling out new, equipment-intensive beverages. The long-term success of these initiatives will depend on sustained customer demand beyond the initial marketing launch. Investors will monitor upcoming U.S. retail sales data and Federal Reserve meeting minutes for broader market direction.
