McDonald's Issues $1.3 Billion in Medium-Term Notes to Strengthen Financial Position

McDonald's has issued $1.3 billion in medium-term notes, with $550 million of 4.400% notes due 2031 and $750 million of 5.000% notes due 2036. This is part of the company's medium-term notes program to strengthen its financial position and support strategic initiatives. The most recent analyst rating is a Buy with a $360.00 price target.

McDonald's Corporation (NYSE: MCD) has announced the issuance of $1.3 billion in medium-term notes, with $550 million of 4.400% notes due in 2031 and $750 million of 5.000% notes due in 2036. This issuance is part of the company's broader strategy to enhance its financial position and support strategic initiatives. The most recent analyst rating for McDonald's is a "Buy" with a price target of $360.00.

The company's latest move comes amidst ongoing efforts to address consumer concerns over affordability. McDonald's has been working to lower the prices of its combo meals, with a 15% discount on eight popular combo meals set to take effect in early September. This move is part of the company's broader strategy to improve its value proposition and attract budget-conscious consumers [1].

The issuance of medium-term notes is a strategic move by McDonald's to secure long-term funding at favorable rates. This financial maneuver allows the company to strengthen its balance sheet and invest in growth opportunities. The company has been facing increased competition in the fast-food sector, with consumers shifting their dining habits due to rising prices. This issuance is aimed at ensuring McDonald's has the financial flexibility to navigate these challenges and maintain its market leadership position [2].

McDonald's President Joe Erlinger emphasized the importance of everyday value and affordability in the company's recent earnings report, stating that "Customers are telling us they need more of the everyday value and affordability that defines the McDonald’s brand" [3]. This issuance of medium-term notes is a reflection of the company's commitment to meeting these consumer demands.

The company's latest earnings report highlighted the growing consumer concern over rising costs, with McDonald's facing criticism for becoming less affordable. The price reduction on combo meals is part of the company's broader strategy to address these concerns and stabilize sales [3].

McDonald's is not the only fast-food chain facing affordability challenges. Many consumers have shifted their dining habits due to increased prices, with casual dining restaurants like Applebee's and Chili's reporting increased sales. Meanwhile, fast-food chains like KFC, Pizza Hut, and Popeyes have seen a dip in same-store sales [3].

The issuance of medium-term notes is a strategic move by McDonald's to ensure it has the financial resources to navigate these challenges and maintain its market leadership position. The company's commitment to improving affordability and value is evident in its recent pricing strategy and financial maneuvers.

References:
[1] https://www.cnn.com/2025/08/20/food/mcdonalds-combo-lower-prices
[2] https://www.staradvertiser.com/2025/08/20/breaking-news/mcdonalds-to-offer-discounted-combo-meals/
[3] https://www.yahoo.com/news/articles/mcdonald-plans-lower-prices-combo-155114302.html