Value Is Back On The Menu

McDonald's $MCD ( ▲ 0.3% ) is getting a bullish nod from BTIG as a renewed push on value drives stronger store traffic.

The firm upgraded the stock to Buy from Neutral, pointing to improved guest counts tied to discounts and promotions.

BTIG set a new price target of $360, implying about 13% upside from today’s close.

The call follows franchisee feedback suggesting that value messaging is resonating again with customers.

BTIG said deeper discounts on Extra Value Meals, alongside the $5 and $8 meal offerings, are shifting consumer perception back toward value leadership. While some locations saw temporary softness due to snowstorms, the firm believes underlying traffic trends remain healthy.

The firm’s analysts also expect a macro tailwind. Higher tax refunds and lower tax burdens on tipped and overtime income could provide extra spending power for lower-income consumers, a group that quick-service restaurants tend to over-index toward.

Beyond value, BTIG sees multiple near-term catalysts.

McDonald’s CosMc beverage platform is expected to launch in the first half of the year, with early tests pointing to strong demand.

The upcoming US launch of the Big Arch burger adds another potential boost. Tested internationally, the premium item could help lift average check sizes while value promotions keep traffic flowing.

BTIG believes the pieces are lining up for steadier momentum ahead.