02:11 PM EDT, 10/09/2025 (MT Newswires) -- McDonald's (MCD) same-store sales outlook is clouded despite its push for value, as industry trends show soft spending by low-income consumers, RBC Capital Markets said in a note e-mailed Thursday.

The fast-food giant is on track to hit its target of 50,000 restaurants by 2027, which should boost revenue and profitability, but the brokerage said it is "cautious" given a potentially prolonged impact of weak consumer spending on same-store sales growth.

RBC initiated coverage of McDonald's with a sector perform rating and a price target of $320, which indicates a "more balanced" risk-reward profile, RBC analyst Logan Reich said.

"It's unclear if the company's recent push into value can drive enough incremental traffic to offset lower checks," Reich wrote. "While we think (McDonald's) can gain some share among lower-income consumers through value, we expect that cohort to remain challenged for the foreseeable future which could limit a potential re-acceleration."

RBC projects McDonald's same-store sales rising by 2.4% this year and 2.7% in each of 2026 and 2027. The brokerage's 2025 and 2026 estimates slightly trail Wall Street's expectations, while the 2027 projection is in line with the consensus view.

RBC expects the fast-food company's earnings-per-share growth of 5.1% this year, 8.3% in 2026 and 7.5% in 2027, all below consensus estimates.

In August, Chief Financial Officer Ian Borden told analysts during an earnings call that McDonald's continues to target a full-year adjusted operating margin in the mid- to high-40% range, which took into account the expected impact from tariffs, according to a FactSet transcript.

The company reported stronger-than-expected second-quarter results as comparable sales grew 3.8% amid value offerings and menu innovations.

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