McDonald's (MCD) Q1 comps were in line and the company gained share in top international operated markets, but macro headwinds and consumer weakness are likely impacting transactions, RBC Capital Markets said.

April comps for US and IOM were negative as headwinds weighed on consumers, while a tough Minecraft comparison also pressured results, the brokerage said in a Thursday research note. US McDonald's operated company margins delevered due to executional missteps driven by additional labor hours and conservative pricing.

Elevated construction costs and franchisee profitability challenges stemming from beef inflation, macro headwinds, and rising energy costs could limit unit growth in 2027 and beyond, according to the note.

Despite a weaker macro backdrop, the company posted in-line Q1 same-store-sales growth, driven by share gains in Australia, Canada, Germany, the UK, and Japan supported by value offerings, menu innovation and marketing.

RBC reiterated its sector perform rating on the stock and lowered its price target to $305 per share from $330.

Price: 278.96, Change: -4.75, Percent Change: -1.67