BTIG believes that a renewed focus on value and promotions is driving consistent traffic growth at McDonald’s . The investment firm upgraded the fast-food chain to a buy rating from neutral. Analyst Peter Saleh’s newly established price target of $360 implies upside of 14% ahead. Analyst Ben Parente wrote he is optimistic on the chain going forward due to changes to its value and promotions strategy, now driving consistent traffic growth. MCD 1Y mountain MCD 1Y chart “Our recent franchisee conversations suggest McDonald’s investment in value with the increased discounts on the Extra Value Meals (EVM) in conjunction with the $5 and $8 Meals is driving meaningful guest count improvements, and shifting consumer perception back to a value leadership position,” he wrote, noting that some franchises lost sales during the major snowstorms. “The underlying traffic trend was very healthy and should bounce back when the weather pattern normalizes.” McDonald’s could also receive a boost as 2026 tax refunds could increase while tax burdens reduce for individuals earnings income through tips and overtime. Overall, this translates into stimulus for lower-income consumers. “We expect the majority of these tax savings to boost lower-income consumers, and provide a tailwind for the quick-service segment which over-indexes to this demographic,” Parente added. The analyst also thinks that McDonald’s’ new CosMc beverage platform will launch in the first half of the year, providing a major catalyst. All signs point to the platform being a “wild success” in early tests. Meanwhile, McDonald’s likely launch of the Big Arch burger next month U.S. could provide another tailwind. Parente called the Big Arch “a premium burger that has been tested in several international markets.” Shares of McDonald’s have popped 9% over the last 12 months.
