McDonald’s (NYSE:MCD) Stock Price Up 2.5% – What’s Next?

Shares of McDonald’s Corporation (NYSE:MCD) were up 2.5% during mid-day trading on Thursday. The company traded as high as $252.88 and last traded at $252.50. Approximately 5,061,538 shares changed hands during trading, an increase of 18% from the average session volume of 4,284,756 shares. The stock had previously closed at $246.25.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s has entered the “Dividend King” group after extending its record of annual dividend increases. The recent sell-off has lifted its yield to roughly 3.2%, making the stock more attractive to income-oriented investors despite slower growth. McDonald’s Is Crowned a Dividend King
• Positive Sentiment: The return of the limited-time McRib, along with Halloween promotions and other collectible products, could provide a seasonal traffic boost and support comparable sales. The McRib Is Coming Back
• Positive Sentiment: Analysts continue to view menu innovation—including chicken launches and limited-time offers—as a potential way to offset slower U.S. customer traffic and reignite sales growth. Can MCD’s Menu Innovation Offset Slower U.S. Comparable Sales Growth?
• Neutral Sentiment: McDonald’s is scheduled to report third-quarter results next month. Analysts expect a single-digit earnings increase, but the report will be closely watched for evidence that promotions and new products are improving U.S. comparable sales. McDonald’s Q3 2026 Earnings: What to Expect
• Neutral Sentiment: A first-ever chef’s table event led by a “Top Chef” winner offers marketing and brand-engagement value, but its limited scale is unlikely to materially affect near-term revenue. McDonald’s First Chef’s Table Experience
• Negative Sentiment: McDonald’s faces a federal lawsuit alleging AI-enabled price fixing. The company says the allegations contain inaccuracies, but the case introduces legal, reputational and potential cost risks. McDonald’s Accused of AI-Fueled Price Fixing
• Negative Sentiment: Competitive pricing is intensifying as Taco Bell promotes a $2 offering while McDonald’s works to balance affordability with margins. Ongoing traffic weakness and concerns about slower U.S. comparable sales could weigh on earnings expectations. Taco Bell Rolls Out a $2 Item

Wall Street Analyst Weigh In

Several research analysts recently weighed in on MCD shares. Seaport Research Partners initiated coverage on shares of McDonald’s in a research report on Wednesday, September 16th. They issued a “neutral” rating for the company. BMO Capital Markets dropped their target price on McDonald’s from $335.00 to $310.00 and set an “outperform” rating for the company in a research report on Thursday, September 24th. Robert W. Baird cut their price target on McDonald’s from $285.00 to $250.00 and set a “neutral” rating on the stock in a research note on Thursday, September 24th. Citigroup dropped their price objective on McDonald’s from $305.00 to $295.00 and set a “buy” rating for the company in a report on Tuesday. Finally, Argus cut their target price on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating on the stock in a research report on Wednesday, August 26th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, McDonald’s currently has a consensus rating of “Moderate Buy” and a consensus price target of $295.64.

McDonald’s Stock Performance

The firm’s 50-day simple moving average is $249.91 and its 200 day simple moving average is $270.11. The company has a market cap of $178.68 billion, a P/E ratio of 20.51, a PEG ratio of 2.76 and a beta of 0.44.

McDonald’s (NYSE:MCD) last posted its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. The firm’s revenue was up 3.7% on a year-over-year basis. During the same period last year, the company earned $3.19 EPS. As a group, research analysts forecast that McDonald’s Corporation will post 12.84 earnings per share for the current year.

McDonald’s Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This represents a $7.72 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Tuesday, December 1st. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s dividend payout ratio is presently 60.44%.

Institutional Trading of McDonald’s

A number of hedge funds have recently modified their holdings of MCD. Ascentis Wealth Management LLC increased its stake in McDonald’s by 4,008.8% during the 2nd quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock worth $22,768,000 after purchasing an additional 82,180 shares in the last quarter. Ridgewood Investments LLC bought a new position in McDonald’s in the third quarter valued at approximately $1,026,000. Borer Denton & Associates Inc. boosted its holdings in shares of McDonald’s by 16.9% in the second quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock valued at $3,746,000 after buying an additional 2,000 shares during the period. HighTower Advisors LLC boosted its holdings in shares of McDonald’s by 7.1% in the second quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock valued at $397,822,000 after buying an additional 97,060 shares during the period. Finally, Viking Fund Management LLC boosted its holdings in shares of McDonald’s by 60.0% in the third quarter. Viking Fund Management LLC now owns 40,000 shares of the fast-food giant’s stock valued at $9,238,000 after buying an additional 15,000 shares during the period. 70.29% of the stock is currently owned by institutional investors and hedge funds.

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.