Citigroup Cuts McDonald's (MCD) Price Target to $295

On October 20, 2026, Citigroup maintained its Buy rating on McDonald's Corporation (NYSE: MCD) while lowering its price target from $305 to $295. The update from the firm offers a fresh look at the fast-food giant as shares trade well below recent historical levels.

MCD McDonald's Corporation

$242.67 ▼ -18.41% year to date

1M 3M YTD

Daily close · Oct 19, 2026

Citigroup's Call on McDonald's

On October 20, 2026, Citigroup maintained its Buy rating on McDonald's while trimming its target price to $295 from $305. Prior to this update, other major financial firms adjusted their views on the stock. On October 5, 2026, Wells Fargo maintained an Overweight rating and cut its target from $300 to $270. On the same day, Guggenheim kept a Neutral rating while moving its target from $290 to $250. Keybanc maintained an Overweight rating on October 6, 2026, lowering its target to $280 from $305, and Bernstein kept a Market Perform rating on October 8, 2026, dropping its target from $295 to $250. Across Wall Street, the stock carries a consensus buy rating with a mean target price of $292.03 across 29 analyst opinions.

Other Institutional Activity in McDonald's

PensionDanmark Pensionsforsikringsaktieselskab reduced its holdings by 13,371 shares, ending with 110,984 shares worth about $25.63 million in a filing reported on October 19, 2026.

McDonald's Corporation Stock Up 1.5%

McDonald's shares closed at $246.52 on October 20, 2026, and recently traded around $246.53. The stock sits about 2.1% below its 50-day moving average of $251.83 and roughly 13.7% below its 200-day moving average of $285.64. The company has a market capitalization of $171.72 billion and a P/E ratio of 19.71.

Recent Earnings

McDonald's generated trailing-twelve-month revenue of $27.70 billion with diluted earnings per share of $12.31. The company posted a net profit margin of 31.7% and year-over-year revenue growth of 3.7%. Its next earnings report is scheduled for November 4, 2026.

Dividend

The company pays an annual dividend rate of $7.72 per share, translating to a dividend yield of 3.18%. Its dividend payout ratio sits at 59.7%.

Insider Buying and Selling at McDonald's Corporation

Company insiders completed several share sales earlier in the year. On April 23, 2026, officer Joseph M Erlinger sold 333 shares at an average price of $302.72 for a total of $100,806. Erlinger sold another 333 shares on May 26, 2026, at $280.11 per share, totaling $93,277. On May 28, 2026, officer Desiree Ann Ralls-Morrison sold 2,763 shares at $278.36 each, amounting to $769,109. Later, on June 10, 2026, Erlinger sold 5,252 shares at $284.32 per share for a total value of $1.49 million.

About McDonald's Corporation

McDonald's Corporation operates and franchises a massive global network of fast-food restaurants serving burgers, chicken items, breakfast meals, and beverages. Headquartered in Chicago, the company generates revenue through both company-operated locations and franchise fees, making its performance a key indicator of consumer spending trends in the restaurant sector.

Bottom Line

Investors are keeping a close watch on the upcoming earnings report scheduled for November 4, 2026, to gauge restaurant traffic and profit margins. Citigroup's revised target highlights where Wall Street sees the valuation heading amidst shifting consumer habits.