This Burger Chain Stock Has Gained 9% This Year And BMO Capital Sees Another 14% Upside Find Out More

McDonald's (MCD) saw a price target increase from BMO Capital to $360 from $350, as the firm remains confident in the fast-food chain's ability to gain market share in the United States.

The new price target implies an upside of 14% to McDonald's closing price of $316.39 on Wednesday. BMO Capital maintained its 'Outperform' rating on McDonald's after meeting with the company's CEO and CFO, according to TheFly.

The firm noted that the key focus of discussion was the U.S. Extra Value Meals launch, as well as other topics such as broader value opportunities, a beverage platform test, and technology initiatives.

On Tuesday, McDonald's announced that it is bringing back its“Extra Value Meals” starting September 8, helping customers save 15% compared to the cost of purchasing an entree, fries, and a drink individually.

Retail sentiment on McDonald's remained unchanged in the 'bullish' territory, with message volumes at 'normal' levels, according to data from Stocktwits.

For a limited time, McDonald's is offering a $5 Sausage McMuffin with Egg meal, which comes with hash browns and a small coffee, as well as an $8 Big Mac meal that includes medium fries and a choice of medium soft drink. 

BMO Capital noted that after the meeting with senior leadership, the firm came away more confident in the fast-food chain's ability to gain U.S. market share in the near and long term, owing to enhanced value leadership relative to the competitive set.

In August, CEO Chris Kempczinski stated that overall quick-service restaurant traffic in the U.S. remained challenging, as visits across the industry by low-income consumers declined by double digits compared to the prior year period.

McDonald's shares have jumped 9% this year and have gained nearly 10% in the last 12 months.

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