Analysts Lower McDonald’s (MCD) Price Targets Despite Q1 Earnings Beat

McDonald’s Corporation (NYSE:MCD) is included among the 10 Best US Stocks to Invest in According to Billionaires.

Analysts Lower McDonald’s (MCD) Price Targets Despite Q1 Earnings Beat

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McDonald’s Corporation (NYSE:MCD) is the world’s leading global foodservice retailer with over 37,000 locations in over 100 countries.

On May 8, Morgan Stanley lowered its price target on McDonald’s Corporation (NYSE:MCD) from $334 to $331, while keeping an ‘Equal Weight’ rating on the shares. The reduced target still represents an upside of over 20% from the current price levels.

Similarly, RBC Capital also trimmed its price target on McDonald’s Corporation (NYSE:MCD) by $25 on May 9, but maintained a ‘Sector Perform’ rating on the shares (read more details here).

The move comes after McDonald’s Corporation (NYSE:MCD) reported better-than-expected results in its Q1 report on May 7, with the foodservice retailer topping estimates in both profits and revenue. The company’s global comparable sales surged by 3.8% during the quarter, up from a 1% decline reported last year.

Ian Borden, McDonald’s Corporation (NYSE:MCD)’s CFO, flagged a weaker start to the second quarter due to the high fuel prices putting persistent pressure on low-income consumers and turning sales slightly negative in April. However, the company reaffirmed its full-year 2026 financial guidance and reiterated its plan to expand to about 50,000 restaurants by the end of 2027.

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