Evercore ISI Slashes McDonald's Price Target to $300

Evercore ISI cut its price target on McDonald's stock to $300 from $320 while maintaining an Outperform rating. The firm reduced its earnings estimates for 2027 through 2030 by roughly 3% due to refranchising, rent relief, and slightly lower same-store sales projections.

The current stock price of $238.32 is 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 that McDonald's is undervalued at current levels.

Evercore ISI noted that McDonald's has underperformed largely due to a 6x price-to-earnings multiple contraction accompanying disappointing U.S. same-store sales trends. The firm discussed the lessons of the past 12 months and potential paths for improving U.S. same-store sales ahead, as well as the mechanics of McDonald's upcoming NEXT investments.