McDonald’s (NYSE:MCD) Shares Climb 2.7% – Should You Buy?

McDonald’s Corporation (NYSE:MCD)’s stock price was up 2.7% on Thursday. The stock traded as high as $257.64 and last traded at $257.3360. 4,493,071 shares changed hands during trading, an increase of 5% from the average daily volume of 4,280,691 shares. The stock had previously closed at $250.50.

Key McDonald’s News

Here are the key news stories impacting McDonald’s this week:

• Positive Sentiment: Technical commentary suggests McDonald’s stock, which has fallen sharply this year amid weakness in consumer-discretionary shares, may be positioned for a rebound. The recent recovery could attract value-oriented investors if the company delivers resilient sales and cash flow. Mapping the Market: Beaten-down McDonald’s stock may be ripe for a rally
• Positive Sentiment: McDonald’s is bringing back Pokémon Happy Meals in November, featuring collectible toys and trading cards. The promotion could support customer traffic, family visits and near-term sales, although its impact is likely temporary. McDonald’s is bringing back Pokémon Happy Meals
• Neutral Sentiment: Wall Street is focusing on estimates for McDonald’s third-quarter 2026 revenue, earnings and operating metrics. The reports provide expectations rather than new company results, so the stock’s next major catalyst will be whether actual performance exceeds or falls short of those forecasts. Unveiling McDonald’s Q3 Outlook
• Neutral Sentiment: New holiday beverages and an $8 Quarter Pounder meal are scheduled for November. These value and seasonal offerings may help affordability perceptions and traffic, but investors will need evidence that promotions can improve demand without pressuring restaurant-level margins. McDonald’s adds new holiday drinks
• Negative Sentiment: Mizuho cut its McDonald’s price target from $290 to $260 and assigned a neutral rating, indicating limited expected upside from recent levels. The revision reinforces concerns about valuation and the durability of cash-flow growth. Mizuho McDonald’s rating
• Negative Sentiment: Coverage also questions whether McDonald’s current valuation already reflects its expected cash generation, while the stock remains materially below its level at the start of the year. A planned multibillion-dollar modernization and AI drive-through initiative could improve efficiency over time, but it also introduces execution and investment risks.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on MCD shares. Melius Research reduced their target price on shares of McDonald’s from $250.00 to $230.00 and set a “sell” rating for the company in a research report on Monday, September 28th. Tigress Financial lifted their price objective on shares of McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. KeyCorp dropped their price objective on shares of McDonald’s from $305.00 to $280.00 and set an “overweight” rating for the company in a research note on Tuesday, October 6th. Mizuho cut their price objective on shares of McDonald’s from $290.00 to $260.00 and set a “neutral” rating for the company in a report on Friday. Finally, Seaport Research Partners started coverage on shares of McDonald’s in a research report on Wednesday, September 16th. They set a “neutral” rating on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $294.73.

McDonald’s Price Performance

The firm has a market cap of $182.68 billion, a P/E ratio of 20.97, a PEG ratio of 2.94 and a beta of 0.44. The company’s 50-day moving average is $248.26 and its two-hundred day moving average is $283.44.

McDonald’s (NYSE:MCD) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating the consensus estimate of $3.32 by $0.06. The firm had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same period last year, the firm earned $3.19 EPS. On average, analysts expect that McDonald’s Corporation will post 12.83 EPS for the current fiscal year.

McDonald’s Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. The ex-dividend date is Tuesday, December 1st. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a yield of 3.0%. McDonald’s’s dividend payout ratio is currently 60.44%.

Hedge Funds Weigh In On McDonald’s

Several hedge funds and other institutional investors have recently modified their holdings of the business. Bfsg LLC grew its stake in McDonald’s by 1.6% in the 3rd quarter. Bfsg LLC now owns 14,671 shares of the fast-food giant’s stock valued at $3,388,000 after acquiring an additional 230 shares during the last quarter. Smallwood Wealth Investment Management LLC raised its stake in McDonald’s by 9.7% in the 3rd quarter. Smallwood Wealth Investment Management LLC now owns 792 shares of the fast-food giant’s stock valued at $183,000 after purchasing an additional 70 shares during the last quarter. Jmac Enterprises LLC raised its stake in McDonald’s by 22.9% in the 3rd quarter. Jmac Enterprises LLC now owns 4,300 shares of the fast-food giant’s stock valued at $993,000 after purchasing an additional 800 shares during the last quarter. Optimist Retirement Group LLC lifted its holdings in McDonald’s by 3.4% in the 3rd quarter. Optimist Retirement Group LLC now owns 7,588 shares of the fast-food giant’s stock valued at $1,752,000 after purchasing an additional 253 shares in the last quarter. Finally, Signet Investment Advisory Group Inc. grew its holdings in shares of McDonald’s by 8.2% during the third quarter. Signet Investment Advisory Group Inc. now owns 14,655 shares of the fast-food giant’s stock worth $3,384,000 after buying an additional 1,108 shares in the last quarter. Institutional investors own 70.29% of the company’s stock.

About McDonald’s

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.