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Tigress Financial Upgrades McDonald's Stock with a $330 Price Target

Tigress Financial Partners analysts have reiterated their Buy rating on McDonald's (NYSE: MCD) shares and raised their price target to $330 in a note released on Wednesday. The analysts noted the company's resilient business model as the reason for their positive outlook.

McDonald's store
McDonald's store

McDonald's "Accelerating the Arches" Strategy Continues to Drive Growth

The analysts stated that McDonald's "Accelerating the Arches" strategy continues to drive growth and build brand strength, resulting in strong 2022 performance, comparable sales growth, and increased guest traffic. The analysts believe that this strategy, combined with the recently announced "Accelerating the Organization" initiative, will continue to drive increased sales growth and profitability.

AI Technology Integration Positive for McDonald's Future

The analysts also pointed to McDonald's integration of AI technology as a positive for the future. The company is innovating and introducing new growth initiatives, including AI-based voice ordering, digital marketing, supply chain management, and ongoing innovation, to automate its drive-thru process. These initiatives are expected to drive long-term business trends and market share gains, increasing return on capital and growing economic profit.

Potential for 25% Total Return from Current Levels

The analysts concluded that they believe further upside exists in McDonald's shares and that their 12-month target price of $330 combined with dividends represents a potential total return of over 25% from current levels.