McDonald’s (NYSE:MCD) Issues Quarterly Earnings Results

McDonald’s (NYSE:MCD) announced its earnings results on Tuesday. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate of $3.32 by $0.06, FiscalAI reports. The company had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same period last year, the firm earned $3.19 earnings per share.

Here are the key takeaways from McDonald’s’ conference call:

• Global comparable sales increased 1.3% in the second quarter, while systemwide sales rose 4% in constant currency; international markets delivered positive growth, though China remained challenging.
• U.S. comparable sales grew only 0.8%, with July comps slightly negative, as inconsistent execution of the under-$3 value menu, reduced digital offers, operational complexity, and an underperforming FIFA campaign weighed on traffic.
• Management is responding with more national and personalized digital offers, greater marketing support for proven value products, simplified restaurant deployments, and a planned crew retraining program to improve service and hospitality.
• The new beverage platform is exceeding expectations in the U.S., Canada, and Germany, generating higher checks, strong food attachment, and additional afternoon traffic; Red Bull Energizers are expected to add further momentum.
• McDonald’s pushed its target of reaching 50,000 restaurants to 2028 from 2027 because of inflationary development costs and a pressured consumer environment, while the projected 2026 foreign-exchange EPS benefit declined to approximately $0.15.

McDonald’s Stock Performance

NYSE:MCD traded up $3.43 during trading hours on Tuesday, hitting $268.66. The company’s stock had a trading volume of 3,311,035 shares, compared to its average volume of 3,861,642. The business’s 50-day moving average is $274.55 and its two-hundred day moving average is $297.32. McDonald’s has a 52-week low of $260.96 and a 52-week high of $341.75. The company has a market capitalization of $190.89 billion, a PE ratio of 22.13, a PEG ratio of 2.91 and a beta of 0.41.

McDonald’s Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be issued a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. McDonald’s’s payout ratio is presently 61.34%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on MCD shares. Royal Bank Of Canada reissued a “sector perform” rating on shares of McDonald’s in a research note on Tuesday, July 28th. TD Cowen reiterated a “hold” rating on shares of McDonald’s in a report on Friday, June 12th. UBS Group reduced their target price on McDonald’s from $365.00 to $340.00 and set a “buy” rating for the company in a report on Monday, July 27th. Cfra upgraded McDonald’s to a “buy” rating in a research report on Friday, May 8th. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating on shares of McDonald’s in a research note on Monday, June 22nd. Fifteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $331.92.

Insider Activity at McDonald’s

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

Hedge Funds Weigh In On McDonald’s

Hedge funds and other institutional investors have recently modified their holdings of the stock. IFC & Insurance Marketing Inc. bought a new position in McDonald’s in the fourth quarter valued at about $29,000. Swiss RE Ltd. acquired a new position in McDonald’s during the fourth quarter valued at approximately $36,000. Greenline Wealth Management LLC acquired a new position in shares of McDonald’s during the fourth quarter worth $55,000. Imprint Wealth LLC acquired a new position in McDonald’s during the 3rd quarter worth about $60,000. Finally, Ankerstar Wealth LLC acquired a new position in shares of McDonald’s during the fourth quarter valued at about $68,000. Institutional investors own 70.29% of the company’s stock.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s reported second-quarter adjusted earnings of $3.38 per share, exceeding the $3.32 analyst consensus and rising from $3.19 a year earlier. Revenue increased 3.7% year over year to $7.10 billion. The earnings beat is the main reason the stock is moving higher. McDonald’s Q2 Earnings Surpass Estimates
• Positive Sentiment: The company appointed longtime executive Skye Anderson as president of McDonald’s USA, replacing Joe Erlinger. Management expects her 26 years of company experience to improve restaurant execution, strengthen value offerings and accelerate growth in the chain’s largest market. McDonald’s Names Skye Anderson as U.S. President
• Neutral Sentiment: International and companywide results helped support profitability, but the revenue figure fell slightly short of the $7.13 billion consensus estimate. Investors will look for evidence that new promotions and operational improvements can revive traffic. McDonald’s Reports Second-Quarter Results
• Negative Sentiment: U.S. comparable sales rose only 0.8%, a sharp slowdown from 2.5% a year earlier and below expectations. Consumers—particularly lower-income customers—are reducing restaurant spending amid economic pressure and higher gas prices. McDonald’s U.S. Sales Disappoint
• Negative Sentiment: CEO Chris Kempczinski acknowledged that McDonald’s failed to execute effectively: value deals were not promoted strongly enough, while reduced digital discounts—including the buy-one-add-one offer—hurt visits from loyal customers. The leadership change signals urgency but also underscores the challenges facing the U.S. business. McDonald’s U.S. Sales Miss Estimates

McDonald’s Company Profile

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.