McDonald's Stock Dips as Analysts Cut Price Targets Amid Sales Concerns
McDonald's Corporation (NYSE:MCD) faced downward adjustments to its price forecasts on Monday as analysts weighed softer U.S. sales trends and execution risks tied to its value strategy. Wells Fargo analyst Zachary Fadem reduced his target price from $300 to $270 while maintaining an Overweight rating. Guggenheim analyst Gregory Francfort lowered his target from $290 to $250 and kept a Neutral rating, citing weaker-than-expected U.S. same-store sales and higher capital reinvestment.
Francfort also revised his earnings estimates, projecting adjusted EPS of $13.50 in 2027 and $14.35 in 2028, both below consensus estimates. He noted that McDonald’s plans to refranchise 60% of its company-operated restaurants and expects stronger same-store sales growth in the coming years as investments begin to yield returns. Despite these challenges, Guggenheim highlighted McDonald’s unmatched U.S. scale, powerful marketing, and profitable franchise model.
The company’s next major catalyst is its third-quarter earnings report, scheduled for November 4, 2026. Analysts anticipate EPS of $3.39, up from $3.22 a year earlier, with revenue projected at $7.30 billion. Investors will closely watch U.S. comparable sales, customer traffic, and franchisee economics.
Separately, McDonald’s is facing a proposed class-action lawsuit alleging it used an AI-powered pricing system to illegally coordinate menu prices across franchise and company-owned restaurants. The lawsuit, filed in Chicago, claims the company violated U.S. antitrust law. McDonald’s denied the allegations, stating that AI does not set menu prices and that franchisees make their own pricing decisions.
McDonald’s shares were up 0.39% at $233.94 during premarket trading on Tuesday, nearing its 52-week low of $229.20.