UBS Cuts McDonald's Price Target Amid US Sales Challenges

UBS has lowered its price target for McDonald's Corp. to $320 from $340, citing US sales challenges and pressured quick-service restaurant valuations.

The analyst, Dennis Geiger, noted that McDonald's shares trade at approximately 18 times consensus 2027 earnings estimates, which is at the lower end of historical valuation ranges.

McDonald's shares are currently trading at $248.24, near their 52-week low of $247.65, and according to InvestingPro analysis, appear undervalued relative to their Fair Value.

UBS expects McDonald's investor day on September 23 in Chicago to focus on plans to improve US sales performance and details on the company's NEXT growth strategy, which emphasizes four key pillars: menu, consumer, restaurant, and people.