Seaport Slaps McDonald's with Neutral Rating

Seaport Global Securities has initiated coverage on McDonald's Corp. (MCD) with a Neutral rating, citing execution challenges and a difficult operating environment.

The firm said McDonald's missed an opportunity to leverage its competitive advantages in 2026 as execution fell short of expectations.

Seaport noted that the company's scale advantages and presence are unmatched within the quick service restaurant industry, but the operating environment for McDonald's and its owner-operators remains challenged.

The challenges include rising interest rates, economic pressure on lower income consumers, elevated beef costs, and an unrelenting competitive environment.

Seaport said that shares are fairly valued given current interest rates, with the stock trading at 18 times 2027 earnings per share, six turns below its five-year historical average of 24 times next-twelve-months price-to-earnings.