McDonald's Aims for Upscale Revamp Amid Menu Disappointment

McDonald's Corp (NYSE:MCD) is preparing to outline its medium-term strategy and targets at an Investor Day on September 23. Analysts have been studying the company's moves, with BTIG's Peter Saleh maintaining a Buy rating and $350 price target.

However, McDonald's has faced challenges in recent quarters, including the failure of its new Under $3 Value Menu to resonate with consumers. About 90% of those who reduced their frequency during the second quarter had purchased a BOGO (Buy One, Get One) item or used a digital offer, leading Saleh to believe that the company will moderate the pace of limited-time offers going forward.

McDonald's also aims to move up-market, mirroring Walmart Inc's strategy of targeting higher-income consumers. The company has tried various chicken and strips options with 'little success,' but expects to introduce hand-breaded chicken in the medium term despite operational challenges.

Meanwhile, Seaport Research Partners' Eric Gonzalez initiated coverage with a Neutral rating, citing execution issues in 2026 that have fallen short of expectations. The analyst believes McDonald's has the right strategy and tools to boost momentum over time but material improvement is unlikely until mid-2027.