BMO and Evercore cut McDonald's targets after selloff

BMO Capital and Evercore ISI lowered their price targets on McDonald's while maintaining Outperform ratings. The revisions followed a 4.81% drop in the stock during Wednesday's session, when the fast-food chain presented its NEXT strategy and targets through 2030.

BMO cut its target to $310, noting that planned investments came in lower than expected and that the presentation lacked clarity on specific initiatives and spending pace. The firm estimates the plan will reduce earnings per share by about 1% in 2027 and 2028, and by 2% to 3% by 2030, seeing limited near-term upside while trends remain under pressure.

Evercore trimmed its target to $300 from $320 and reduced its 2027 to 2030 estimates by roughly 3%, citing refranchising, rent relief, and softer same-store sales. The firm highlighted a six-point compression in the price-to-earnings multiple due to weaker US comparable sales. The $300 target equals 22 times estimated 2027 earnings and 20 times 2028 earnings, with the stock trading at $238.90 in premarket activity, near its 52-week low of $234.03.