McDonald's drew price target cuts a day after its investor day, with BMO Capital lowering its target to $310 and Evercore ISI cutting its target to $300 from $320, both keeping Outperform ratings. The analyst moves follow a 4.81% drop in the shares during Wednesday's session, when McDonald's laid out its NEXT strategy and 2030 targets. BMO said the planned investment came in lower than expected, with productivity gains front-loaded, but that the presentation lacked visibility on specific initiatives and the pace of spending, and it estimates the plan will cut earnings per share by about 1% in 2027 and 2028, rising to 2% to 3% by 2030. Evercore trimmed its 2027 through 2030 estimates by roughly 3%, pointing to refranchising, rent relief and slightly softer same-store sales, and attributed much of the stock's underperformance to a six-point compression in its price-to-earnings multiple as U.S. comparable sales disappointed. Evercore's $300 target equals 22x 2027 and 20x 2028 estimated earnings, with the stock at $238.90 in premarket trading, near its 52-week low of $234.03.
Evercore Partners IncEvercore cut its McDonald's price target to $300 from $320 and trimmed 2027-2030 estimates by ~3%.
Bank of Montreal
McDonald’s CorporationMcDonald's drew price target cuts from BMO and Evercore after its investor day, with the plan seen cutting EPS ~1% in 2027-2028 and rising to 2-3% by 2030.
