Baird Lowers McDonald's Price Target Amid Investment Concerns
Baird has lowered its price target for McDonald's stock from USD 250.00 to USD 245.00, maintaining a Neutral rating. The adjustment comes as the company faces investment concerns and a major modernization program. McDonald's is asking franchisees to absorb the costs of an USD 8.50 billion NEXT partnering support plan through 2036, with USD 5.00 billion allocated through 2030. Despite the reduction, Baird's new target remains above the latest NYSE reference price of USD 231.89 as of October 2, 2026.
McDonald's second-quarter performance showed mixed results, with global comparable sales rising 1.30 percent, but US comparable sales increasing only 0.80 percent. The company reported USD 7.10 billion in revenue for Q2 2026, up 4.00 percent from the prior-year quarter, with adjusted earnings per share reaching USD 3.38. The weaker US performance is a key concern, as the United States remains McDonald's largest market.
The company's September strategy plan targets a low-to-mid 50 percent operating margin by 2030 and 250 basis points of gross restaurant-level efficiency gains. It also aims for 1.50 percentage points of market-share gains in both chicken and beverages by 2030. McDonald's stock was trading at EUR 207.80 on October 5, 2026, up 0.70 percent from the prior close. The stock's 52-week range is USD 229.61 to USD 341.75, with a market capitalization of USD 164.8 billion as of October 2, 2026.