UBS Keeps Buy Rating on McDonald's (MCD), Sees Growth Potential
McDonald's Corporation (NYSE:MCD) experienced a decline since May 19, which the firm sees as creating an attractive entry point for investors.
A cook in a busy kitchen assembling cheeseburgers for orders.
UBS noted that McDonald's Corporation (NYSE:MCD) is well-positioned to make multi-year market share gains, even though quick-service restaurant sales are currently under pressure.
The research firm expects McDonald's Corporation (NYSE:MCD) to see improved same-store sales in the second half of 2025. This improvement is expected to be supported by new products, value initiatives, and marketing efforts. UBS believes these will drive performance despite ongoing spending challenges faced by lower and middle-income consumers.
According to UBS analysts, McDonald's Corporation (NYSE:MCD) is expected to improve its international business in the coming quarters. The firm highlighted that the company's longer-term outlook includes speeding up unit growth to 4-5% and to gain efficiencies in general and administrative expenses.
McDonald's Corporation (NYSE:MCD) is an American multinational fast food chain with more than 38,000 restaurants around the world.
While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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