Melius Downgrades McDonald's to Strong Sell Amid Inflation Concerns

McDonald's (NYSE:MCD) has received a strong sell rating from equities researchers at Melius Research. This upgrade comes as several analysts have adjusted their price targets for the fast-food giant in recent weeks.

Melius Research is not alone in its bearish view of McDonald's, with Morgan Stanley lowering estimates through 2030 and cutting its price target earlier this week. The cost and timing of McDonald's new financial targets are seen as contributing factors to these downward revisions.

Additionally, the negative impact of persistent inflation and rising menu prices on affordability and franchisee economics is also a concern for analysts. Furthermore, GLP-1 weight-loss drugs may reduce demand for some fast-food occasions, further pressuring McDonald's sales.