Evercore ISI Cuts McDonald's Price Target to $300
Evercore ISI has reduced its price target on McDonald's stock to $300 from $320, while maintaining an Outperform rating. The firm lowered its earnings estimates for 2027 through 2030 by around 3% due to refranchising, rent relief, and slightly lower same-store sales projections.
McDonald's has underperformed in recent times, largely due to a 6x price-to-earnings multiple contraction that accompanied disappointing U.S. same-store sales trends. The stock currently trades at $238.32, near its 52-week low of $234.03 and down over 30% from its 52-week high of $341.75.
Despite the recent weakness, InvestingPro analysis suggests the stock is undervalued at current levels. McDonald's has maintained its status as a dividend aristocrat with 51 consecutive years of dividend increases.