Citigroup said that it views McDonald’s value price initiatives, easy comparisons, and potential for multiple expansion as reasons to own the stock.
McDonald’s (MCD) shares rose 1% before the bell on Wednesday after Citigroup raised its price target on the stock to $381 from $373, noting that the fast-food chain’s value deal offerings should help boost growth.
Citigroup maintained its ‘Buy’ rating, according to TheFly. The price target is reportedly the highest among Wall Street analysts, as per Bloomberg. Citigroup said that it views McDonald’s value price initiatives, easy comparisons, and potential for multiple expansion as reasons to own the stock.
Retail sentiment on McDonald’s remained in the ‘neutral’ territory, with message volumes at ‘normal’ levels, according to data from Stocktwits.
Earlier in September, McDonald’s announced that it would be bringing back its “Extra Value Meals” on September 8, offering customers a 15% savings compared to the cost of purchasing an entree, fries, and a drink individually.
Many restaurant chains are offering discounts and deals to attract customers at a time when consumers, mainly in the United States, have been dining out less due to rising prices.
In August, McDonald’s CEO Chris Kempczinski noted that overall quick-service restaurant traffic in the U.S. remained challenging, as visits across the industry by low-income consumers declined. McDonald’s has also been running the $5 value meal offering since 2024 to spur demand at its restaurants.
Citigroup also noted that it was seeing the investment thesis improve in 2026, driven by store remodels and accelerating unit growth.
Shares of McDonald’s rose nearly 5% this year and have gained 4% in the last 12 months.
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