JPM Cuts McDonald's Target Price Amidst Mixed Q2 Earnings

McDonald's Corp MCD saw its target price cut to $280 by JPMorgan, down from $305. The fast-food giant reported strong second-quarter earnings that surpassed Wall Street expectations, with adjusted earnings per share reaching $3.38.

This represents a 6% increase over the previous year and exceeds the average analyst estimate of $3.32. However, revenue for the quarter grew by only 4%, falling short of the projected $7.13 billion.

Global same-store sales increased by 1.3%, aligning with market forecasts. McDonald's offers a dividend yield of 2.73% and is considered undervalued at its current price of $268.34, which is below its GF Value™ of $327.47.