McDonald’s downgraded to Sell from Buy at Redburn Atlantic

Redburn Atlantic analyst Chris Luyckx double downgraded McDonald’s (MCD) to Sell from Buy with a price target of $260, down from $319. The firm sees the GLP-1 weight-loss drugs suppressing consumer appetites and presenting an underappreciated longer-term threat for McDonald’s. A 1% drag on sales today “could easily build to 10% or more over time,” particularly for restaurant brands skewed toward lower-income consumers, the analyst tells investors in a research note. Redburn believes the impact of GLP-1 drugs will be cumulative and bring behavior changes that extend beyond an individual user, reshaping group dining and softening habitual demand.