BMO Cuts McDonald's Price Target Amid Concerns Over Investment Plan

BMO Capital has lowered its price target on McDonald's stock to $310 from a previous level, while maintaining an Outperform rating. This adjustment comes as the company continues to implement its NEXT strategy and work towards its 2030 targets.

The firm cited concerns over the company's investment plan, which was deemed lower than expected with front-loaded productivity. BMO Capital also noted that management provided limited details on initiatives and spending cadence, making it difficult to gauge the timeline for benefits to accrue.

The analyst estimates a 1% drag on 2027 and 2028 earnings per share, building to 2% to 3% by 2030. Despite this, BMO Capital maintains that shares are likely limited in the near term due to still-pressured trends and the timeline for initiatives to take effect.

McDonald's has been a focus of several analyst updates recently. Evercore ISI adjusted its price target for McDonald's to $300 from $320, while UBS lowered its target to $320 from $340.