McDonald's Fair Value Trimmed as Analysts Split on US Execution

Analyst

โดย Simply Wall St·

Summary · why it matters

Simply Wall St has lowered its blended fair value estimate for McDonald's to about US$316.06 from about US$323.90, reflecting a reduction in modelled long-term revenue growth from about 5.02% to about 4.62% and a lower assumed future P/E multiple from about 27.56x to about 26.57x. The revision comes as Wall Street analysts remain divided on the stock, with Citi and Deutsche Bank lifting targets to US$345 and Tigress Financial raising its target to US$390, while Guggenheim, Piper Sandler, and RBC cut targets into the US$286 to US$305 range citing softer U.S. execution and questions around the NEXT strategy. Morgan Stanley and TD Cowen maintain cautious stances with targets near US$300, pointing to a show-me setup and concerns about the effectiveness of extra value meal promotions. The projected net profit margin was slightly increased from about 33.61% to about 33.70%, and the discount rate moved from about 9.04% to about 9.20%.

McDonald’s Corporation ±