Morgan Stanley Cuts McDonald's Price Target Amid Higher Investment Costs

McDonald's stock is down on the NYSE after Morgan Stanley reduced its price target from $308.00 to $297.00.

The new target represents a 26.33 percent increase above the current market price, but the cut suggests higher investment costs tied to the company's NEXT strategy.

McDonald's reported second-quarter results that showed revenue of $7.099 billion, up 4.00 percent from the same period last year, and GAAP diluted EPS increased 6.00 percent to $3.32.

The operating income rose 3.00 percent to $3.338 billion, but the market is weighing the cost of the next investment cycle.