McDonald's (MCD) Q4 performance was strong but guidance is pointing to a deceleration across all three segments, RBC Capital Markets said in a note Thursday.

"Large portion of US 4Q upside drivers are not recurring where management guided all three segments' SSS growth to decelerate from 4Q," the report said. SSS is same-store sales.

The note also said its 2026 free cash flow conversion from net income was guided to low-mid 80% range, against consensus of 88.5%, and its capital expenditure was guided about 12.2% above market estimates at the midpoint.

RBC analysts said they are raising their price target to $330 from $320 on slightly higher EPS estimates but kept their sector perform rating.

"We look for further evidence of sustained US SSS growth improvements," they said.

Price: 332.18, Change: +8.97, Percent Change: +2.78