Guggenheim cuts McDonald’s target to $250 on softer U.S. sales

Guggenheim has lowered its price target for McDonald’s stock to $250, down from $290, while maintaining a Neutral rating. The adjustment comes amid weaker U.S. same-store sales and slowing global unit growth. Currently trading at $231.89, the stock is near its 52-week low of $229.61. This cautious outlook is supported by 13 analysts who have revised their earnings estimates downward for the upcoming period.

The firm reduced its earnings per share estimates for McDonald’s to $13.50 for 2027 and $14.35 for 2028, lower than the consensus estimates of $13.88 and $14.77, respectively. Despite these revisions, InvestingPro analysis suggests the stock remains undervalued, offering potential upside for long-term investors. The new price target of $250 represents 18.5 times the 2027 earnings estimate, factoring in weaker-than-expected sales and decelerating global expansion.

Guggenheim’s revised outlook also considers McDonald’s plans to refranchise 60% of its company-operated locations and shifts in franchisee support strategies. The analysis incorporates anticipated capital reinvestments and expected improvements in same-store sales over the next few years. Other recent analyst reports, including those from Wells Fargo, Morgan Stanley, and Bernstein SocGen Group, have also adjusted their price targets and ratings, reflecting concerns about pricing strategies and investment costs tied to McDonald’s NEXT strategy.

In other news, McDonald’s has sold a Hong Kong location in the Tsuen Wan district for $15.3 million. The site, originally opened in 1978, was purchased by the company in 1987 for HK$8 million. This sale is part of McDonald’s ongoing strategic real estate adjustments in a competitive market environment.