RBC Capital Trims McDonald's Price Target Ahead of Investor Day

RBC Capital has reduced its price target for McDonald's Corp. (MCD) to $290 from $295, while maintaining a Sector Perform rating on the stock.

The firm lowered its estimates ahead of McDonald's investor day scheduled for Wednesday, September 23, at its Chicago headquarters, where management is expected to present its NEXT strategy in detail and set new financial targets through 2030.

According to RBC Capital, the investor day will include details on an upcoming remodel program and co-investment, which could represent low-to-mid single digits of free cash flow. The stock appears undervalued at current levels, with a yield of 2.89% from its 50-year dividend streak.

Same-store sales growth needs to reaccelerate before investor interest increases, according to RBC Capital, which does not expect this to occur until the first quarter of 2027.