McDonald's Faces Target Cuts Amid Mixed Q2 Results

McDonald's stock has faced a target cut from JPMorgan following its recent investor event. The bank reduced its price target for McDonald's to $260.00, while retaining an Overweight rating. This is not the only target change, as Morgan Stanley also lowered its target to $297.00 and kept an Equalweight rating.

The Q2 2026 figures show mixed results, with adjusted EPS up 6% from last year but revenue missing expectations by 0.5%. Global comparable sales growth slowed to 1.3% from 3.8% in the prior-year quarter. The strength and constraint of McDonald's model are evident: global systemwide sales rose 5% to $37.00 billion, but U.S. comparable sales increased only 0.8%, with guest counts declining.

Despite these challenges, McDonald's has approved a 4% increase in its quarterly dividend to $1.93 per share and plans $8.50 billion in franchisee support through 2036. This capital commitment weighs against the longer-term productivity plan. The execution of the value and loyalty strategy remains a key financial variable for the company.