McDonald's Corporation shares closed lower on Friday, retreating 1.4% to $327.58 after reaching an intraday high near $335.50. Trading volume was approximately 3.6 million shares for the session.
Earnings Drive Analyst Optimism
The fast-food giant reported a 5.7% increase in global comparable sales for the fourth quarter, with U.S. comparable sales rising 6.8%. The company also raised its quarterly dividend by 5% to $1.86 per share and posted adjusted earnings of $3.12 per share on revenue of $7.01 billion.
Following the earnings release, several analysts increased their price targets. Argus upgraded the stock to Buy with a $380 target, while Jefferies raised its target to $375. UBS and Citi also lifted their targets, though Guggenheim maintained a Hold rating while slightly reducing its target to $320.
Market Context and Peer Performance
The decline occurred during a mixed session for restaurant stocks. Starbucks fell 2.44%, Yum Brands declined 1.66%, while Chipotle Mexican Grill gained 1.28%. Major market indexes finished near flat for the day.
Company executives noted challenges including planned reductions in value meal subsidies, ongoing cost inflation, and potential weather-related impacts on early 2026 performance. The company maintains a target for operating margins in the mid-to-high 40% range.
Upcoming Economic Catalysts
Investor focus is shifting to next week's economic calendar, which includes Federal Reserve meeting minutes on Wednesday and key data releases on Friday. The Personal Consumption Expenditures (PCE) inflation report—the Fed's preferred inflation measure—and fourth-quarter GDP figures could significantly influence interest rate expectations.
These macroeconomic developments may impact defensive consumer stocks like McDonald's as markets reassess the timing of potential Federal Reserve policy adjustments.
