RBC Cuts McDonald's Price Target Ahead of Investor Day
RBC Capital has revised its price target for McDonald's Corp. () to $290 from $295, citing estimate cuts ahead of the company's investor day on September 23. The stock currently trades at $256.11, near its 52-week low of $252.15, and has declined 14% year-to-date.
The firm expects McDonald's revenue and earnings to be in line with consensus expectations, but notes that U.S. execution fell short, leading to a reduced price target. Management is set to present its NEXT strategy in detail, including an upcoming remodel program and co-investment, which RBC Capital estimates could represent low-to-mid single digits of free cash flow.
Despite the challenges facing McDonald's, the company has raised its dividend for 50 consecutive years and currently yields 2.89%. Analysts are cautious about same-store sales growth, with RBC Capital noting that it needs to reaccelerate before investor interest increases, which is expected to happen in the first quarter of 2027.