Yum! Brands, McDonald's Face Challenging Q3 Outlook, Morgan Stanley Says

11:38 AM EDT, 10/15/2026 (MT Newswires) -- Yum! Brands (YUM), McDonald's (MCD), and Restaurant Brands International (QSR) face mixed Q3 results amid slowing fast-food trends, Morgan Stanley said in a note Thursday. The firm said Yum! Brands remains a top pick among major fast-food chains, despite expectations that results could fall short of forecasts in Q3 and possibly Q4. Taco Bell has faced issues linked to cyclosporiasis, while consensus estimates may still include Pizza Hut, which Yum! is expected to sell. McDonald's is expected to face continued challenges through the rest of the year as management works to improve franchisee alignment and roll out its NEXT initiative. Morgan Stanley said Restaurant Brands International could see strong performance from Burger King in the US and possibly internationally. However, it expects weaker results from its other brands to deliver a larger earnings beat. The investment firm said the risk-reward profile for Restaurant Brands International appears favorable. The stock may need to deliver stronger key performance indicators to provide a clearer catalyst, according to the note. Morgan Stanley raised its price target on Restaurant Brands International to $82 from $79 while keeping its equalweight rating. Price: 150.21, Change: +3.52, Percent Change: +2.40