McDonald's Price Target Cut Amidst Inflation Concerns
McDonald's (NYSE:MCD) price target was cut to $250.00 by Robert W. Baird, a decrease from the previous target of $285.00. The brokerage maintains its 'neutral' rating on the company's stock, indicating a potential upside of 4.46% from the current price.
This is not an isolated instance, as several other brokerages have also reduced their price targets for McDonald's in recent weeks. Citigroup dropped its target to $310.00 and set a 'buy' rating, while Morgan Stanley cut its target to $308.00 with an 'equal weight' rating.
The reduced price target comes amidst concerns about persistent inflation and flat traffic among lower-income customers. Management's cautious outlook has also contributed to investor skepticism, particularly as the company plans to spend approximately $8.5 billion through 2036 to provide rent relief and capital support to franchisees.