Industry Overview - The fast-food industry faced significant challenges entering 2025, including inflation eroding margins, shifting consumer tastes, and rising operating costs, leading to decreased traffic and weakened profitability [1] Company Performance - McDonald's managed to maintain stability through value-driven promotions and marketing discipline, which helped sustain demand and differentiate its performance from peers [2] - Analyst Jon Tower from Citigroup reaffirmed a "Buy" rating on McDonald's stock, raising the price target to $381, citing the company's strength from aggressive value offers, increased marketing spend, and favorable comparisons to previous weaker quarters [3] - McDonald's preserved affordability and customer loyalty by maintaining nationally advertised price points, subsidizing net profit losses in higher-cost markets [4] Future Outlook - Citi anticipates momentum for McDonald's through 2026, driven by new growth initiatives such as expanded beverage offerings, particularly in the energy drink sector, remodel cycles, and faster unit expansion, positioning the company to capture market share while competitors face declining traffic [5] Stock Performance - McDonald's stock has increased by 1.3% over the past 52 weeks and nearly 5% year-to-date, contrasting with the Invesco Dynamic Food & Beverage ETF, which has declined by 5% over the same period and nearly 2% year-to-date, highlighting McDonald's resilience in a challenging market [7]