McDonald’s stock can help investors remain defensive as the broader market whipsaws on tariff and economic worries, according to Wells Fargo. The firm reiterated an overweight rating on the fast-food stock, alongside a $350 per share price target. Wells Fargo’s forecast calls for more than 13% upside from Monday’s $308.72 close. Analyst Zachary Fadem said despite broader weakness throughout the fast-food industry in recent months due to weakening consumer confidence, McDonald’s is among a handful of stocks that have “worked well.” Shares have advanced more than 9% in 2025, while the S & P 500 has declined nearly 11%. McDonald’s value options are especially attractive if consumers choose to trade down or are planning to eat out on a budget, and are a key reason Fadem labels the stock as defensive. He said although consumer credit card spending at U.S. restaurants slipped 1.9% from the fourth quarter of 2024 to the first quarter of 2025, McDonald’s saw a decline of 0.6% during the same period. The sector-wide weakness also will make McDonald’s individual catalysts more important, he said. This includes a Minecraft movie promotion, which looks to be boosting foot traffic to restaurants since it was launched in April, he said. MCD YTD mountain McDonald’s stock in 2025. Tariffs remain front of mind for investors , and have spurred fears about the health of the economy. On Tuesday, the International Monetary Fund cut its U.S. growth forecast as a result of the ongoing trade war. “Shortfalls (MCD, SBUX, CMG, etc.) shouldn’t surprise at this point, but as new risks emerge (tariffs, re-inflation, global sentiment, etc.), it’s hard to call Q1 de-risked,” Fadem said. “Amid more uncertainty, exit rates, [quarter-to-date] & idiosyncratic drivers matter most.” McDonald’s will report first-quarter results on May 1. Analysts polled by FactSet forecast earnings per share of $2.66 on revenue of $6.1 billion. However, Wells Fargo is below consensus estimates on both fronts, and forecasts earnings per share of $2.65 and $6.06 billion in revenue. Beyond the Minecraft promotion, other potential catalysts include new menu items and revamped offerings such as McCrispy Chicken Strips, Snack Wraps and a redeveloped lemonade. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
