Erste Group Bank Decreases Earnings Estimates for McDonald’s

McDonald’s Corporation (NYSE:MCD) – Research analysts at Erste Group Bank reduced their FY2027 EPS estimates for McDonald’s in a research note issued to investors on Wednesday, August 5th. Erste Group Bank analyst S. Lingnau now forecasts that the fast-food giant will earn $14.00 per share for the year, down from their previous estimate of $14.15. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for McDonald’s’ current full-year earnings is $12.88 per share.

Several other research analysts have also weighed in on MCD. Deutsche Bank Aktiengesellschaft raised their price objective on shares of McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Mizuho lowered their price objective on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. Wells Fargo & Company lowered their target price on McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday, July 16th. Cfra upgraded McDonald’s to a “buy” rating in a research report on Friday, May 8th. Finally, Evercore set a $320.00 target price on McDonald’s in a research report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $325.44.

McDonald’s Stock Down 0.4%

MCD stock opened at $273.30 on Tuesday. The stock’s 50 day moving average is $273.98 and its two-hundred day moving average is $296.14. 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 $194.18 billion, a PE ratio of 22.20, a P/E/G ratio of 3.07 and a beta of 0.41.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 512.80%. The firm had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same quarter in the previous year, the business posted $3.19 EPS. The firm’s revenue was up 3.7% compared to the same quarter last year.

Institutional Investors Weigh In On McDonald’s

Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in McDonald’s by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock valued at $22,112,675,000 after buying an additional 703,458 shares during the last quarter. State Street Corp boosted its position in shares of McDonald’s by 2.7% during the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after acquiring an additional 959,140 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of McDonald’s by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock worth $5,195,965,000 after buying an additional 76,090 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of McDonald’s by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock worth $2,895,768,000 after purchasing an additional 277,617 shares in the last quarter. Finally, Norges Bank bought a new position in McDonald’s during the 4th quarter valued at about $2,890,438,000. Institutional investors own 70.29% of the company’s stock.

Insiders Place Their Bets

In other McDonald’s news, 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 value of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction on 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 transaction, the insider owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 8,348 shares of company stock valued at $2,355,634 in the last three months. Company insiders own 0.26% of the company’s stock.

McDonald’s Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be given a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald’s’s dividend payout ratio is presently 60.44%.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s is cited as a potentially attractive defensive Dow stock because its powerful global brand, franchise-heavy model, recurring cash flow, dividends and share repurchases can provide stability when technology stocks are volatile. The Dow Is Outperforming the S&P 500 and Nasdaq in 2026
• Positive Sentiment: A comparison with Airbnb emphasizes McDonald’s high-margin franchise network and consistent free-cash-flow generation, supporting the investment case for income-oriented and quality-focused investors. Airbnb vs. McDonald’s
• Neutral Sentiment: McDonald’s continues to lead the U.S. burger market by a wide margin, despite Restaurant Brands International’s Burger King regaining the No. 2 position from Wendy’s. The competitive development reinforces McDonald’s scale advantage but could increase pressure to maintain value and traffic. Restaurant Brands’ stock jumps as star franchise beats Wendy’s
• Neutral Sentiment: Menu changes and an upcoming Hello Kitty and Godzilla promotion may support customer engagement, although the articles provide no evidence yet of a material sales or earnings impact. McDonald’s Hello Kitty and Godzilla crossover
• Negative Sentiment: Recent commentary says McDonald’s pricing decisions and withdrawn promotions alienated some loyal customers, raising concerns about affordability and traffic as lower-income consumers face pressure. McDonald’s admits pricing mistakes
• Negative Sentiment: Analysts and investors remain cautious following quarterly results that beat EPS expectations but slightly missed revenue estimates, despite 3.7% year-over-year revenue growth. The mixed performance may limit near-term upside. Is McDonald’s Still a Good Stock to Buy in 2026?

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.