McDonald's Price Target Cut by RBC Capital Amid Reacceleration Concerns

RBC Capital reduced its price target for McDonald's Corp. to $290 from $295 while keeping its Sector Perform rating on the stock.

The analyst lowered estimates ahead of the company's investor day, scheduled for September 23 at its Chicago headquarters, where management will present its NEXT strategy and set new financial targets through 2030.

The firm expects an upcoming remodel program and co-investment to represent low-to-mid single digits of free cash flow, according to InvestingPro analysis. McDonald's appears undervalued at current levels, with the stock trading near its 52-week low of $252.15 and down 14% year-to-date.

RBC Capital noted that same-store sales growth needs to reaccelerate before investor interest increases, which is not expected until the first quarter of 2027.