McDonald’s Tried To Fix Its Affordability Problem – But Wall Street Is Not Convinced Yet

• TD Cowen said McDonald’s value strategy improved price perception but didn’t boost lasting traffic or sales. 
• Baird trimmed its price target on MCD to $305 from $330.
• In Q1, the burger giant’s revenue increased 9% year-on-year to $6.52 billion. 

McDonald’s (MCD) stock faced analyst scrutiny amid fading momentum in its same-store sales recovery and a cautious near-term outlook for the fast-food sector, fueling growth concerns. 

CEO Chris Kempczinski said during the company’s first-quarter (Q1) earnings call that the broader consumer environment is not improving and may even be getting slightly worse, and added that many customers, especially those with lower incomes, are feeling more financial pressure.

Analysts Turn More Cautious On MCD 

TD Cowen analyst Andrew Charles revised the price target lower for the global burger chain, trimming it to $300 from $330 while maintaining a ‘Hold’ rating, as per TheFly. 

The revision comes after TD Cowen re-evaluated McDonald’s value-focused strategy, launched in late 2025. The firm said the effort helped customers view prices more favorably, but it did not lead to steady increases in customer visits or reliable sales growth.

In addition to the price target cut, TD Cowen lowered its earnings-per-share projections for 2026 and 2027 by roughly 3%, citing softer macroeconomic conditions and limited visibility into a stronger demand recovery. 

Separately, Baird also reduced its price target on MCD to $305 from $330 while maintaining a Neutral rating. 

McDonald's stock inched 0.1% higher in Friday’s premarket. 

In Q1, revenue increased 9% year-on-year to $6.52 billion, surpassing the Fiscal AI estimate of $6.47 billion. McDonald’s has introduced and promoted discounted bundles and budget-friendly items across its markets as part of a broader push to reinforce its affordability image. The strategy centers on a "3-for-3" approach that balances value, marketing, and menu innovation to defend its market share. 

“At McDonald's, value has always been part of our DNA. As I've said before, and I'll say it again, McDonald's is not going to get beat on value and affordability,” said Kempczinski.

MCD Retail Traders View 

On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory, and message volume increased 146% over a period of 24 hours. 

A user said, “I’m not particularly happy with the current stock price… but I did take the opportunity to add a little more to the portfolio today…. I am skeptically optimistic that this will work itself out and continue to the upside.” 

Another user said, “If the food doesn’t kill u fast the Stock will. Today was a horrible day!!,” talking about the company’s earnings. 

MCD stock has declined by over 7% year-to-date. 

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