McDonald’s Stock Nears 52-Week Low As Analysts Slash Forecasts
Key takeaways
- Analyst downgrades and tighter earnings outlook signal growing doubts about McDonald’s value strategy and franchisee alignment, tightening upside for a stock already near a 52‑week low.
- Wells Fargo price target $270
- Guggenheim price target $250
- Guggenheim 2027 EPS $13.50
What happened
McDonald’s Corporation (NYSE: MCD) saw two analysts slash their price targets, with Wells Fargo cutting from $300 to $270 and Guggenheim from $290 to $250, citing softer U.S. sales, heavier investment and execution risks around its value strategy.
Why it matters
The cuts reflect concerns that weaker same‑store sales and slower global unit growth will erode earnings, while the company’s refranchising plan and franchisee alignment issues add uncertainty to its value initiatives. Analysts now project 2027 and 2028 EPS of $13.50 and $14.35, below consensus $13.88 and $14.77,…
Short-term and longer-term
Short-term. In the next few days, MCD’s price could react to the Q3 earnings release on Nov.
Longer-term. Over the coming months, investors should monitor how McDonald’s refranchising 60% of its company‑operated restaurants and its franchisee support changes play out.