McDonald’s shares slid to a 52-week low of $260.95 on Thursday, extending a prolonged decline that has erased roughly $49 billion in market value over the past six months.
The fast-food giant’s stock has fallen 20.76% since late February and 16.37% over the past year, underperforming broader consumer and restaurant sector benchmarks. The company’s market capitalization now stands at $184.76 billion, reflecting the reduced valuation.
Analysts have responded with widespread target reductions, citing mixed second-quarter results and challenges in executing value-driven strategies. RBC Capital cut its price target to $295, aligning with a similar reduction from Bernstein SocGen Group, which also cited delayed growth and value execution hurdles. KeyBanc lowered its target to $305, attributing the move to soft U.S. sales despite a recent marketing push.
Not all assessments were negative. Freedom Broker upgraded its rating to Buy while trimming its target to $305, citing optimism about the company’s long-term positioning despite the near-term headwinds.
Amid the share price decline, McDonald’s maintained its dividend growth streak, with a 2.79% yield and 50 consecutive years of payout increases. The company has not provided updated guidance in conjunction with the latest share price movement.
