Street View: McDonald's menu overhaul tests market appetite

Mcdonalds

12/02/2026 15:35

Updates

** McDonald's MCD.N topped Wall Street estimates for fourth-quarter global comparable sales and profit on Wednesday, as meal deals and strong marketing promotions pulled in budget-strapped U.S. diners, while demand remained resilient in Australia and Britain

** Shares of the fast-food chain up nearly 1% at $326.40 in morning trading

FLIPPING SCRIPT LIKE A HOT PATTY

** J.P. Morgan ("overweight," PT: $305) says menu discussion stood out, particularly MCD's acknowledgment of the heightened need and opportunity to improve taste and quality across its three core categories: chicken, beef and beverages

** Stifel ("hold," PT: $315) says while management ties better value perception to 'Extra Value Menu' items and argues that current growth supports lower franchisee pricing, it's hard to separate that from short-term lifts like the 'Grinch Meal' and lapping the E. coli (foodborne-illness outbreak) impact

** Gordon Haskett ("buy," PT: $360) says that while the demand backdrop for U.S. and international quick-service restaurants remains challenging through 2026, it prefers the MCD stock's risk–reward profile, supported by co's shift toward a more aggressive value platform, a renewed focus on limited‑time offers and menu innovation

** TD Cowen ("hold," PT: $320) says MCD plans to maintain predictable value offerings in what is anticipated to be a challenging low-income consumer backdrop, and believes digital will help, with the management emphasizing higher frequency among loyalty members

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))