ET 12:12

McDonald's (MCD) Price Targets Rise 6.8% Above Close; FCF Models Hint $375+

IMP6.0
SNT+1.0
CONF80%
Earnings

McDonald's Corp (MCD) sees price targets average to $353.83, implying 8.0% upside from its Feb. 13 close of $327.58. Three valuation methods support continued gains: a 33.33x FCF multiple implies $372.92, historical dividend yield implies $338.57, and analyst consensus is at $350.00. Operating cash flow as a percent of revenue rose to 39.2% from 36.5% in 2025, while free cash flow as a percent of sales climbed to 26.7% despite higher capex. Projected 2026 free cash flow is $8.159B on $28.95B revenue, with a market cap of $237.6B implying a 3.03% FCF yield and a 33.33x multiple. Analysts' average price targets (Yahoo! $340.03, Barchart $342.81, AnaChart $367.16) and a 2.25% historical average dividend yield model indicate 6.84% upside from current levels. Short-term traders may consider out-of-the-money one-month put options as a contrarian play.

EditorJack Lee