Citigroup Cuts McDonald's Price Target Amid Cautious Outlook

Citigroup maintained its Buy rating for McDonald's MCD on September 16, 2026, but reduced the price target to $310.00 from $345.00, representing a decrease of 10.14%. This adjustment reflects a cautious outlook on the company despite maintaining a positive view.

The GF Value calculation suggests that McDonald's is undervalued by approximately 23.4% given its current trading price of $249.27 compared to its calculated intrinsic value of $325.29. The stock's P/E (TTM) stands at 20.24, significantly lower than its 5-year median P/E of 25.95.

McDonald's GF Score of 69/100 indicates a solid investment potential with strengths in profitability and valuation, but some weaknesses in momentum. The company demonstrates strong profitability and valuation metrics, ranking 8/10 in profitability and 8/10 in valuation, while its momentum rank of 1/10 suggests that the stock may not be experiencing significant upward price movement at this time.

The recent rating update from Citigroup reflects a cautious outlook on McDonald's, despite maintaining a Buy recommendation. The reduction in the price target indicates that analysts are adjusting their expectations based on current market conditions and company performance metrics.