RBC Capital Cuts McDonald's Price Target on Disappointing Growth Outlook
RBC Capital has lowered its price target for McDonald's Corp. stock (MCD) to $285 from $290 while maintaining a Sector Perform rating.
The firm made this adjustment after attending McDonald's investor day at the company's global headquarters in Chicago, where senior management presented the company's growth and margin drivers, new restaurant model, and long-term financial targets.
RBC Capital noted that McDonald's unit growth outlook through 2030 came in below consensus expectations, and store and technology investments announced were larger than anticipated. The firm also lowered its third-quarter U.S. same-store sales estimates slightly and extended them through 2030.
Despite near-term headwinds, the analyst stated that they expect U.S. same-store sales could continue to face pressure until a US traffic inflection is seen.