The Best and Worst Dow Stocks for the Next 12 Months

28. McDonald’s Corp. (NYSE:MCD)

Upside Potential: 6.8%

Market Cap: $228 billion

Number of Hedge Fund Holders: 67

It is difficult to imagine someone not knowing McDonald’s Corp. (NYSE:MCD) and the celebrated golden arches. The company franchises, owns, and operates McDonald’s restaurants across over 100 countries, serving a locally relevant menu of food and beverages. Best known for serving hamburgers, cheeseburgers, and French fries, the company had 43,477 restaurants as of end-2024, with around 95% franchised.

As visible from its share price outperformance year-to-date (+10%), the company’s business remains resilient amid inflationary pressures, helped by its global brand, franchise model, and strong operational efficiency. Over the last few years, the company has benefited from its ‘Accelerating the Arches’ strategy, which focuses on growing market share, expansion of digital platforms, and menu innovations.

Corroborating its investment case, an analyst at Erste Group upgraded the stock’s rating to a Buy from Hold on March 17. The analyst based his upgrade on the company’s high and stable operating margin and business stability. With a 2025 gross profit margin and revenue growth estimate of 57% and 2% year-over-year, he expects MCD’s international segment to grow faster than the domestic business, which should support earnings and share price momentum.

In mid-April, Morgan Stanley analyst Brian Harbour reaffirmed his confidence in the stock with a Buy rating and a price target of $330.