Analysts are Lovin' McDonald's With Higher Price Targets and Estimates - Is MCD Stock a Buy Here?

Core Insights - Analysts have increased their price targets for McDonald's Corp. (MCD) stock following a strong earnings report, indicating positive market sentiment towards the company [1] - MCD's stock has shown significant growth, rising 9.2% from a low of $299.86 on January 5 to a closing price of $327.58 on February 13, despite a slight dip after the earnings release [2] Financial Performance - McDonald's operating cash flow (OCF) margin improved to 39.2% from 36.5%, reflecting a 7.4% increase, while revenue grew by 3.7% to $26.9 billion in 2024, demonstrating enhanced operational efficiency [5][6] - The company's capital expenditures (capex) as a percentage of sales increased to 12.5% from 10.7%, yet free cash flow (FCF) as a percentage of sales also rose to 26.7% from 25.7%, indicating a strong ability to invest while maintaining cash generation [7] Future Projections - A revised price target of $371.30 has been set based on an expected $9 billion in FCF for 2026, representing a 25% increase over 2025, supported by a 40% OCF margin assumption and $3.2 billion in capex spending [8]