Story updated at 10 a.m. to reflect market activity.
Shares of McDonald's fell 0.1% to $92.88 in morning trading.
The analyst firm also lowered its EPS estimates for the fast food chain through 2015. For the third quarter of 2014, Jefferies expects McDonald's to report earnings of $1.42 a share, down from its previous estimate of $1.59 a share. The analyst firm expects earnings of $5.40 a share for full year 2014, down from $5.60 a share, and $5.80 a share for 2015, down from its previous estimate of $5.94 a share.
McDonald's is spending more to regain the trust of its customers, and is facing higher taxes, according to Jefferies analysts.
Separately, TheStreet Ratings team rates MCDONALD'S CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MCDONALD'S CORP (MCD) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."