FY2026 EPS Estimates for McDonald’s Lowered by Analyst

McDonald’s Corporation (NYSE:MCD) – Erste Group Bank decreased their FY2026 earnings per share estimates for McDonald’s in a report released on Monday, July 27th. Erste Group Bank analyst S. Lingnau now anticipates that the fast-food giant will post earnings per share of $12.92 for the year, down from their prior estimate of $12.98. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for McDonald’s’ current full-year earnings is $12.86 per share. Erste Group Bank also issued estimates for McDonald’s’ FY2027 earnings at $14.15 EPS.

A number of other equities research analysts have also weighed in on MCD. Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and raised their price target for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. Wells Fargo & Company cut their price objective on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft set a $325.00 price objective on shares of McDonald’s in a research report on Thursday, July 9th. JPMorgan Chase & Co. lowered their target price on McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a research note on Monday, May 11th. Finally, Morgan Stanley dropped their target price on McDonald’s from $331.00 to $322.00 and set an “equal weight” rating on the stock in a research report on Wednesday, July 15th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat.com, McDonald’s currently has an average rating of “Moderate Buy” and an average price target of $333.32.

McDonald’s Trading Up 0.8%

NYSE MCD opened at $272.82 on Wednesday. The stock has a market cap of $193.84 billion, a P/E ratio of 22.49, a PEG ratio of 2.91 and a beta of 0.41. The company’s fifty day simple moving average is $275.60 and its 200-day simple moving average is $298.42. McDonald’s has a 52 week low of $260.96 and a 52 week high of $341.75.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The firm had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same period in the previous year, the company posted $2.67 EPS. McDonald’s’s revenue for the quarter was up 9.4% on a year-over-year basis.

McDonald’s Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.

Insider Activity at McDonald’s

In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 8,348 shares of company stock valued at $2,355,634. Insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

Several institutional investors and hedge funds have recently bought and sold shares of the business. Peterson Wealth Services increased its holdings in shares of McDonald’s by 3,294.5% during the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock valued at $3,600,000 after purchasing an additional 11,432 shares during the period. Harbour Investments Inc. grew its position in McDonald’s by 84.4% in the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant’s stock valued at $10,853,000 after buying an additional 16,252 shares in the last quarter. Capital International Sarl grew its position in McDonald’s by 10.4% in the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock valued at $19,639,000 after buying an additional 6,079 shares in the last quarter. North Dakota State Investment Board acquired a new position in McDonald’s during the 4th quarter valued at about $7,493,000. Finally, Pittenger & Anderson Inc. increased its stake in McDonald’s by 21.9% during the 4th quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant’s stock valued at $6,567,000 after buying an additional 3,866 shares during the period. Institutional investors and hedge funds own 70.29% of the company’s stock.

Trending Headlines about McDonald’s

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

• Positive Sentiment: UBS maintained a Buy rating despite lowering its price target from $365 to $340, implying substantial potential upside from recent levels. The firm’s target remains well above the market price. UBS price-target update
• Positive Sentiment: McDonald’s reaffirmed its quarterly dividend of $1.86 per share, payable September 16, reinforcing the company’s appeal to income-oriented investors after a period of share-price weakness. McDonald’s dividend and valuation analysis
• Neutral Sentiment: McDonald’s shares have increased recently and are trading near their 52-week low, while Wall Street’s average price targets remain materially higher. This creates possible recovery upside but also reflects ongoing uncertainty about the company’s growth outlook. Stocks near 52-week lows
• Negative Sentiment: Erste Group Bank reduced its FY2026 EPS estimate to $12.92 from $12.98 and its FY2027 forecast to $14.15 from $14.19, retaining a Hold rating. The revisions signal modestly softer expectations, although the FY2026 estimate remains close to the broader consensus of $12.86. Erste Group earnings estimates
• Negative Sentiment: UBS and RBC expect sluggish or slowing same-store-sales growth in the second and third quarters, citing weaker consumer spending. That outlook raises concerns about traffic, pricing power and the effectiveness of McDonald’s value offerings. Same-store-sales outlook
• Negative Sentiment: Rising beef prices have pressured sentiment toward McDonald’s, potentially squeezing restaurant margins or forcing higher menu prices. Analysts also question whether the stock is fully valued given digital-sales and consumer-demand concerns. Beef-cost concerns

About McDonald’s

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.