BMO Trims McDonald's Price Target Amid Strategy Timeline Concerns
BMO Capital Markets has adjusted its price target for McDonald's (MCD) to $310 from a previous level, while maintaining an Outperform rating. The current stock price is $238.32, down over 20% year-to-date and near its 52-week low of $234.03.
The firm cited the company's NEXT strategy and 2030 targets as the basis for the adjustment. Management outlined plans to leverage faster-growing categories and competitive advantages to gain market share. However, BMO Capital noted that the investment outlined was lower than expected with front-loaded productivity, which resulted in limited visibility to initiatives and spending cadence.
The analyst estimated a 1% drag on 2027 and 2028 earnings per share, building to 2% to 3% by 2030. BMO Capital said its updated 2027 EPS estimate represents a best guess based on limited details provided.