Morgan Stanley Downgrades McDonald’s Stock Amid Eroding Pricing Power
Morgan Stanley has downgraded McDonald’s stock to equal-weight from overweight, citing diminished pricing power and emerging headwinds for lower-income consumers. Analyst Brian Harbour cut the price target to $324, reflecting 7% upside potential—a tempered outlook for what many consider a defensive stock.
The MOVE follows Loop Capital’s similar downgrade, highlighting broader concerns about consumer spending resilience. Structural shifts in dining habits, including weight-loss drug trends, now pressure fast-food operators. 'Investors are pricing in too much safety,' Harbour noted, pointing to McDonald’s premium valuation despite eroding fundamentals.