McDonald's Buy Rating Maintained at Loop Capital

Loop Capital analysts reaffirmed a Buy rating on McDonald's (NYSE:MCD), maintaining a price target of $342 on the stock.

The analysts’ optimism follows McDonald’s decision to extend its popular $5 Meal Deal through the end of the year, rather than launching a new everyday value platform as originally planned. According to feedback from franchisee sources, this move is seen as a positive development for the broader quick-service restaurant industry. By opting to continue the $5 Meal Deal, McDonald's has alleviated concerns among competitors like Burger King and Wendy’s, who were wary of an aggressive price competition heading into the holiday season.

This decision reduces the likelihood of a value-based pricing war, which had been a concern for top competitors in the sector. The analysts believe that McDonald’s strategy will allow the company to maintain momentum without disrupting market dynamics, while also avoiding unnecessary margin pressure. Based on a valuation of 18 times the firm’s 2025 EV/EBITDA estimate, Loop Capital continues to see upside potential for McDonald’s stock, justifying its Buy rating.