Guggenheim Lowers McDonald’s Price Target on Weak U.S. Sales

Guggenheim has lowered its price target for McDonald’s stock to $250 from $290, maintaining a Neutral rating. The firm cited weaker U.S. same-store sales and slowing global unit growth as key concerns. Currently, the stock is trading at $231.89, near its 52-week low of $229.61. Analysts have revised earnings estimates downward for the upcoming period, aligning with Guggenheim’s cautious outlook.

The firm reduced its earnings per share estimates for McDonald’s to $13.50 for 2027 and $14.35 for 2028, down from consensus estimates of $13.88 and $14.77 respectively. Despite these adjustments, InvestingPro analysis suggests the stock remains undervalued, offering potential upside for investors. Guggenheim’s new price target of $250 represents 18.5 times its 2027 earnings estimate, factoring in weaker sales and capital reinvestments.

Recent strategic moves by McDonald’s include plans to refranchise 60% of its existing company-operated portfolio and shifting its approach to franchisee support. Other analysts, such as Wells Fargo, Morgan Stanley, and Bernstein SocGen Group, have also adjusted their price targets and ratings, citing concerns about pricing strategy, investment costs, and near-term earnings pressure. Additionally, McDonald’s sold a Hong Kong location for $15.3 million, reflecting ongoing strategic adjustments in its real estate holdings.