FY2026 EPS Estimates for McDonald’s Decreased by Analyst

McDonald’s Co. (NYSE:MCD) – Equities research analysts at Zacks Research reduced their FY2026 earnings estimates for McDonald’s in a research note issued to investors on Tuesday, November 12th. Zacks Research analyst H. Ray now expects that the fast-food giant will post earnings of $13.48 per share for the year, down from their prior forecast of $13.56. The consensus estimate for McDonald’s’ current full-year earnings is $11.77 per share.

Other equities research analysts have also issued reports about the company. Morgan Stanley upped their price target on McDonald’s from $296.00 to $340.00 and gave the company an “overweight” rating in a research report on Tuesday, October 15th. Truist Financial dropped their price objective on shares of McDonald’s from $350.00 to $342.00 and set a “buy” rating on the stock in a research note on Wednesday, October 30th. Barclays boosted their price target on McDonald’s from $300.00 to $325.00 and gave the company an “overweight” rating in a research note on Tuesday, October 22nd. Jefferies Financial Group lifted their target price on shares of McDonald’s from $310.00 to $330.00 and gave the stock a “buy” rating in a report on Monday, September 9th. Finally, Stifel Nicolaus lowered their price objective on shares of McDonald’s from $285.00 to $265.00 and set a “hold” rating on the stock in a research note on Monday, July 22nd. Thirteen investment analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $319.46.

McDonald’s Price Performance

Shares of McDonald’s stock opened at $298.56 on Friday. McDonald’s has a 1-year low of $243.53 and a 1-year high of $317.90. The company has a market capitalization of $213.95 billion, a PE ratio of 26.21, a P/E/G ratio of 3.95 and a beta of 0.74. The business has a 50-day moving average of $299.79 and a 200-day moving average of $277.14.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Tuesday, October 29th. The fast-food giant reported $3.23 EPS for the quarter, topping the consensus estimate of $3.18 by $0.05. McDonald’s had a net margin of 31.79% and a negative return on equity of 175.42%. The firm had revenue of $6.87 billion during the quarter, compared to analyst estimates of $6.82 billion. During the same quarter in the prior year, the business posted $3.19 earnings per share. McDonald’s’s revenue for the quarter was up 2.7% compared to the same quarter last year.

Hedge Funds Weigh In On McDonald’s

Large investors have recently added to or reduced their stakes in the company. RPg Family Wealth Advisory LLC bought a new position in McDonald’s in the 3rd quarter worth $31,000. Hara Capital LLC purchased a new stake in McDonald’s during the 3rd quarter valued at approximately $44,000. Kings Path Partners LLC bought a new stake in shares of McDonald’s during the second quarter valued at approximately $38,000. Peterson Financial Group Inc. purchased a new position in shares of McDonald’s in the third quarter worth $58,000. Finally, Opal Wealth Advisors LLC bought a new position in shares of McDonald’s during the second quarter worth $59,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Insiders Place Their Bets

In related news, insider Joseph M. Erlinger sold 1,098 shares of McDonald’s stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $288.70, for a total transaction of $316,992.60. Following the transaction, the insider now directly owns 12,583 shares in the company, valued at approximately $3,632,712.10. The trade was a 8.03 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Marion K. Gross sold 1,499 shares of the company’s stock in a transaction dated Friday, November 1st. The stock was sold at an average price of $294.51, for a total value of $441,470.49. Following the completion of the sale, the executive vice president now owns 1,560 shares of the company’s stock, valued at approximately $459,435.60. The trade was a 49.00 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 35,596 shares of company stock valued at $10,698,289. 0.23% of the stock is currently owned by corporate insiders.

McDonald’s Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be paid a dividend of $1.77 per share. This is an increase from McDonald’s’s previous quarterly dividend of $1.67. The ex-dividend date is Monday, December 2nd. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.37%. McDonald’s’s dividend payout ratio (DPR) is currently 58.65%.

About McDonald’s

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.