Jefferies analysts reaffirmed their Buy rating on McDonald’s (NYSE:MCD) with a $345 price target, citing the fast-food giant as a top pick for 2025. The analysts highlighted the company’s strong positioning to gain market share and drive same-store sales (SSS) growth, even in a challenging quick-service restaurant (QSR) traffic environment.
McDonald’s momentum was expected to continue, supported by its focus on value-driven offerings, loyalty programs, and impactful marketing strategies. A new value-focused initiative planned for early January was anticipated to serve as a near-term catalyst. Additionally, the potential for modest reductions in general and administrative expenses and higher-than-expected unit growth could position McDonald’s for earnings outperformance in 2025 and 2026.
Over the long term, the analysts pointed to opportunities for margin expansion, robust free cash flow conversion, and strong total shareholder returns as key reasons for optimism. With its strategic initiatives and operational efficiency, McDonald’s appeared well-equipped to maintain leadership in the QSR sector and deliver sustainable growth.