McDonald's Price Targets Cut Amid NEXT Strategy Rollout

McDonald's investor day has investors taking a closer look at its long-term growth and investment plans. The company's NEXT strategy rollout is expected to drive guest-count growth, market-share gains, and restaurant productivity.

Analysts are adjusting their price targets following the event. Morgan Stanley reduced its target for McDonald's (MCD) stock to $297 from $308 while maintaining an 'Equal Weight' rating. Melius Research lowered its target to $230 from $250 while keeping its 'Sell' rating.

The analysts' moves follow McDonald's announcement of a $8.5 billion plan in NEXT partnering support through 2036, including about $5 billion through 2030. The company expects to gain 1.5 percentage points in market share for chicken and beverages by 2030 while maintaining its position in beef.

TD Cowen is modeling below-consensus fourth-quarter U.S. comparable sales and sees an unclear trajectory for 2027-30 earnings-per-share (EPS) growth, citing the effects of refranchising, rent relief, and slightly lower same-store sales estimates.