McDonald’s Stock Surges as Analysts Raise Price Targets to $371
McDonald's Stock Looks Cheap - Analysts Are Lovin' MCD and Raising Their PTs Analysts have been raising their price targets (PTs) for McDonald's stock (MCD) over the last month. Meanwhile, my price target remains 19% higher at $370. Shorting out-of-the-money puts and calls works here.
McDonald’s stock has seen a steady rise in analyst confidence over the past month. Several firms have lifted their price targets, reflecting growing optimism about the company’s financial prospects. Shares recently climbed from a November low of $296.37 to close at $311.23 on Friday.
Analysts have been adjusting their forecasts for McDonald’s (MCD) in recent weeks. The average price target from 37 analysts now sits at $331.20, slightly up from $330.10 a month earlier. Meanwhile, a separate group of 22 analysts tracked by AnaChart has raised their average target to $352.03—a 4% increase from the previous month.
One projection suggests the stock could reach $371 per share, representing a 19% upside from current levels. This estimate assumes a market capitalisation of $265 billion over the next 12 months, based on a 29.4x valuation multiple and a 3.4% free cash flow (FCF) yield. McDonald’s operating cash flow margin is expected to hit 40%, potentially pushing free cash flow to $9 billion next year.
Traders are also exploring options strategies to capitalise on the stock’s movement. Shorting out-of-the-money puts could generate extra income while lowering the effective purchase price. Alternatively, buying in-the-money calls may offer substantial gains if the share price continues to climb.
The upward revisions in price targets signal confidence in McDonald’s financial outlook. With shares trading above $311 and projections pointing to higher cash flows, investors are watching closely. The company’s valuation and options strategies remain key topics among analysts and traders.
