McDonald's Shares Plummet Amid Higher Investment Plans and Slower Growth
McDonald's (MCD) shares have hit four-year lows after the company revealed its plans for growth and efficiency at its 2026 Investor Day.
The burger giant announced initiatives to improve restaurant efficiency, aiming to boost its global franchise mix from around 95% by end-2028 to around 98%. It also outlined targets for 2030, including higher margins and cash flow.
However, the news sent shockwaves through the market, with shares plummeting 20.7% year-to-date. Investment firms Evercore and JPMorgan responded by trimming their price targets for MCD, with Evercore cutting its target to $300 from $320 and JPMorgan lowering its target to $260 from $280.
Despite the reduced targets, both firms maintained a positive rating on McDonald's, indicating confidence in the company's long-term prospects.