McDonald’s (MCD) Sticks to Core DEI amid Corporate Pullback

McDonald’s (MCD) is maintaining its core inclusion initiatives despite a broader corporate pullback on diversity, equity, and inclusion (DEI) practices. It must be noted that the fast-food giant did adjust some of its terms and policies earlier this year.

In key changes, McDonald’s stopped setting targets for hiring diverse staff and suppliers. It also started using the word “inclusion” instead of “DEI.” But the company kept other programs, such as offering groups where workers with similar backgrounds can meet and sharing public reports on staff diversity.

Addressing Immigration Concerns

Beyond DEI, companies are also dealing with the Trump administration’s focus on immigration.

Some McDonald’s locations have been raided by Immigration and Customs Enforcement (ICE). In response, McDonald’s is supporting its franchise owners, who run most of its 13,500 U.S. restaurants, in understanding employee rights during these situations.

McDonald’s has a special team from HR, legal, and government relations that meets every week to track changes in immigration rules.

MCD Sees Analyst Downgrade

Loop Capital Markets analyst Alton Stump has downgraded MCD stock and lowered the price target to $315 from $346, citing concerns over U.S. same-store sales growth.

The analyst had expected McDonald’s new menu items to boost domestic sales, but its recent chicken strips launch received mostly negative customer feedback. This could hurt the upcoming snack wrap launch, since it uses the same chicken strips.

Stump was optimistic about McDonald’s ability to drive sales through these product launches, but with weak early reception, it now believes the company may struggle to regain momentum in 2025.

Is McDonald’s a Buy, Sell, or Hold Stock?

Turning to Wall Street, MCD stock has a Moderate Buy consensus rating based on 13 Buys and 12 Holds assigned in the last three months. At $331.70, the average McDonald’s stock price target implies a 7.24% upside potential.

See more MCD analyst ratings