McDonald's menu missteps blamed as Jefferies cuts stock target to $325
Jefferies cut McDonald's price target to $325 from $350 but kept its buy rating, citing fixable summer marketing and menu missteps.
Investment bank Jefferies cut McDonald's price target to $325 per share. Summer marketing mistakes and menu stumbles drove much of the sales slowdown.
The bank sees a path to recovery. Returning digital deals, Spicy Chicken McNuggets, and cartoon-themed promotions should rebuild momentum.
Jefferies forecasts third-quarter US same-store sales growth at 0.5 percent, beating the 0.2 percent consensus. Growth is seen at 1.6 percent in 2026 and 2.5 percent in 2027.
The Best Burger rollout, Big Arch expansion, and premium drinks offer longer-term growth without heavy investment as part of McDonald's NEXT strategy. Operating margins are projected in the 40 percent range, on the higher end, in 2026.
Management must prove the turnaround is credible at an investor day on September 23.
- $350 to $325
- Price target cut
- 0.5 percent
- Q3 same-store sales forecast
- 1.6 percent
- 2026 growth forecast
- September 23
- Investor day
Why it mattersMenu recovery and margin expansion could restore confidence in the company. It has struggled to keep lower-income diners and faces intense competition.
AustraliaMcDonald's operates across Australia; menu changes and margin pressures will affect Australian franchise operators and employment.
✓ Claims checked against the source. checked 7 d ago
