NEW YORK, July 18, 2026, 13:08 EDT — U.S. markets closed
- McDonald’s shares ended Friday at $267.71, slipping 2.1% on the session and 2.5% over the week.
- Analyst price targets show a new range from $300 up to $390, a difference of $90.
- A new $2.99 Caesar Snack Wrap will be available nationwide starting Tuesday, July 21.
McDonald’s Corporation NYSE:MCD closed the week trading close to its 52-week low. The latest analyst price targets range from $300 to $390.
Friday closed at $267.71, down 21.7% from the March peak and just 1.4% higher than Wednesday’s $264.09 low.
The $90 target spread represents 33.6% of Friday’s closing price. Both companies anticipate gains, but their recovery timelines vary.
Wells Fargo NYSE:WFC analyst Zachary Fadem lowered his price target to $300 from $320, while maintaining an Overweight rating. The bank commented that the near-term setup “isn’t so juicy.” MarketBeat
Tigress analyst Ivan Feinseth increased his price target to $390 from $385 while maintaining a Buy rating, describing the recent weakness as a “compelling opportunity.” MarketBeat
As of Friday’s close, these targets suggest upside of 12% and 46%. The gap between them sends the strongest investor signal this week.
Heightened market pressure intensified Friday’s drop, with McDonald’s slipping 2.1%, compared to a 1.01% decrease for the S&P 500. The Dow dropped 0.77%.
The shares dropped 2.5% for the week. The S&P slipped 1.6% and the Dow shed 0.9%.
Valuation provides a degree of support. McDonald’s is currently trading at lower trailing earnings multiples compared to four major restaurant rivals.
| Company | Friday close | Friday move | Trailing P/E |
|---|---|---|---|
| McDonald’s Corporation NYSE:MCD | $267.71 | down 2.1% | 22.1x |
| Yum! Brands NYSE:YUM | $147.92 | off 2.7% | 23.9x |
| Restaurant Brands International NYSE:QSR | $75.01 | off 2.7% | 26.5x |
| Chipotle Mexican Grill NYSE:CMG | $34.44 | up 0.7% | 30.8x |
| Starbucks NASDAQ:SBUX | $105.49 | down 2.7% | 80.5x |
Friday’s prices and trailing multiples have been rounded based on market data.
McDonald’s trades at 22.1 times earnings, which is 22.9% under the peer group median of 28.6 times. The lower valuation suggests the market is factoring in softer traffic in the near term.
Global comparable sales increased by 3.8% in the first quarter, with U.S. comparable sales up 3.9%. Both results were below analyst forecasts.
April sales slipped into negative territory. Chief Executive Chris Kempczinski said: “Elevated gas prices are the core issue we’re seeing right now.” Reuters
The warning intensified on Friday, as Brent crude surged 4.6% amid fears of conflict involving Iran. Management states that rising fuel expenses have a greater impact on lower-income customers.
McDonald’s will roll out a $2.99 Caesar Snack Wrap across the country on Tuesday, providing a clear value test. The Bacon Caesar McCrispy sandwich will also be added to the menu.
The wrap broadens McDonald’s value menu priced under $3, offering investors an early look at demand for lower-priced chicken options.
Domino’s Pizza NASDAQ:DPZ is set to announce its second-quarter results on Monday at 8:30 a.m. EDT. The company’s comments on traffic could offer an initial sector gauge.
Risks: Rising costs for fuel, food, paper and operations may pressure franchisee margins. Additional consumer pressures could limit the impact of value-focused promotions.
Crude prices, Domino’s and the wrap rollout will influence sentiment next week. The reduced multiple lessens valuation pressure, but demand risk remains.
