McDonald's Analysts Cut Price Targets Amid Mixed Signals

McDonald's (MCD) investors got some mixed signals from Wall Street analysts after the company's investor day last week. Morgan Stanley and Melius Research cut their price targets for the fast-food giant, but Evercore ISI maintained its 'Outperform' rating.

Morgan Stanley trimmed its target to $297 from $308 while keeping an 'Equal Weight' rating. Meanwhile, Melius Research analyst Jacob Aiken-Phillips lowered his target to $230 from $250 while maintaining a 'Sell' rating.

McDonald's plans to spend around $8.5 billion on its NEXT strategy through 2036, including about $5 billion by 2030. The company aims to drive guest-count growth and market-share gains with the help of this investment plan.

The analyst actions follow McDonald's unveiling of its NEXT strategy, which is designed to boost restaurant productivity and tackle cost pressures such as higher beef prices.