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

McDonald’s (NYSE:MCD) issued its quarterly earnings data on Tuesday. The fast-food giant reported $3.38 earnings per share for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06, FiscalAI reports. The company had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The firm’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the business 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

MCD stock traded up $5.15 during trading on Tuesday, reaching $270.38. 2,695,550 shares of the company were exchanged, compared to its average volume of 3,857,508. The company has a market cap of $192.10 billion, a P/E ratio of 22.23, a PEG ratio of 2.91 and a beta of 0.41. McDonald’s has a 52-week low of $260.96 and a 52-week high of $341.75. The stock’s 50 day moving average price is $274.55 and its 200 day moving average price is $297.32.

McDonald’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. McDonald’s’s dividend payout ratio (DPR) is 61.34%.

Insider Transactions at McDonald’s

In other news, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction that occurred 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 completion of the sale, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction that occurred on Thursday, May 28th. The stock was 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 owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 8,348 shares of company stock valued at $2,355,634. 0.26% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On McDonald’s

Several institutional investors and hedge funds have recently made changes to their positions in MCD. Hamilton Point Investment Advisors LLC grew its stake in shares of McDonald’s by 1.8% during the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock worth $535,000 after buying an additional 31 shares during the last quarter. Richmond Investment Services LLC boosted its holdings in shares of McDonald’s by 1.4% during the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock valued at $696,000 after acquiring an additional 32 shares in the last quarter. Papamarkou Wellner Asset Management inc. boosted its holdings in shares of McDonald’s by 0.4% during the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant’s stock valued at $2,692,000 after acquiring an additional 32 shares in the last quarter. Parvin Asset Management LLC grew its position in McDonald’s by 3.8% during the 3rd quarter. Parvin Asset Management LLC now owns 929 shares of the fast-food giant’s stock worth $282,000 after acquiring an additional 34 shares during the last quarter. Finally, Peloton Wealth Strategists grew its position in McDonald’s by 0.7% during the 3rd quarter. Peloton Wealth Strategists now owns 5,370 shares of the fast-food giant’s stock worth $1,632,000 after acquiring an additional 35 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

MCD has been the topic of a number of recent research reports. Morgan Stanley cut their target price on shares of McDonald’s from $331.00 to $322.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 15th. Erste Group Bank downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Mizuho dropped their price objective on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a research note on Friday. TD Cowen reaffirmed a “hold” rating on shares of McDonald’s in a report on Friday, June 12th. Finally, Evercore set a $320.00 price target on McDonald’s in a report on Thursday, July 23rd. Fifteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $331.92.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s reported second-quarter earnings per share of $3.38, ahead of the $3.32 analyst consensus. Revenue increased 3.7% year over year to $7.10 billion, supporting the company’s profitability story. McDonald’s Reports Second Quarter 2026 Results
• Positive Sentiment: The company appointed longtime executive Skye Anderson as president of McDonald’s USA. Her mandate is to improve restaurant execution, strengthen value offerings and accelerate growth across nearly 14,000 U.S. locations, potentially providing a catalyst for a turnaround. McDonald’s Names Skye Anderson as U.S. President
• Neutral Sentiment: McDonald’s launched its first Crocs-themed Happy Meal in the United Kingdom. The promotion could support brand engagement and short-term traffic, though its financial impact is likely limited relative to U.S. sales trends. McDonald’s Launches Crocs Happy Meal
• Negative Sentiment: U.S. comparable sales rose just 0.8%, slowing sharply from 2.5% a year earlier and missing expectations. Domestic traffic declined as cautious consumers, particularly lower-income customers, reduced restaurant spending. McDonald’s U.S. Sales Disappoint
• Negative Sentiment: Value promotions failed to attract enough diners amid higher gas prices, inflationary pressure and broader economic anxiety. Investors may view the results as evidence that McDonald’s needs stronger menu innovation and service improvements to regain momentum in its largest market. McDonald’s U.S. Sales Growth Stalls
• Negative Sentiment: Although the earnings per share beat was encouraging, quarterly revenue of $7.10 billion fell slightly short of the $7.13 billion consensus, reinforcing concerns that slowing sales—not profitability—is the company’s main near-term challenge. McDonald’s Beats Earnings 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.