McDonald’s Corp (NYSE:MCD) is set to host an Investor Day on Sept. 23 to outline its medium-term strategy and targets. Here are some key analyst takeaways ahead of the event:
- BTIG analyst Peter Saleh maintained a Buy rating and price target of $350.
- Seaport Research Partners analyst Eric Gonzalez initiated coverage with a Neutral rating.
Check out other analyst stock ratings.
BTIG: The fast food company’s new "Under $3 Value Menu" failed to resonate with consumers in the second quarter. About 90% of the consumers who reduced frequency during the quarter had purchased a BOGO (Buy One, Get One) item or used a digital offer. McDonald’s is likely to moderate the pace of limited-time offers (LTOs) going ahead, Saleh said in a noted.
McDonald’s tried several variations of chicken and strips with "little success.” Expect hand-breaded chicken in the medium-term, despite operational challenges, the analyst stated.
McDonald’s also wants to mirror Walmart Inc’s (NASDAQ:WMT) strategy of moving up-market, "shifting its focus to higher-income consumers over time," he further wrote.
Seaport Research Partners: McDonald’s execution in 2026 has fallen short of expectations, Gonzalez said. The operating environment faces several challenges:
- Rising interest rates
- Economic pressure
- Higher beef costs
- Stiff competition
"We believe McDonald’s has the right strategy and tools to jumpstart momentum over time, but material improvement is unlikely until mid-2027, the analyst wrote.
The company seems to be gearing up for a "next-generation remodel cycle." Whether it could step up its capex from 2028 remains to be seen.
MCD Price Action: McDonald’s shares had declined 0.86% to $250.67 at the time of publication on Wednesday.
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