McDonald’s (NYSE:MCD) Announces Earnings Results

McDonald’s (NYSE:MCD) released its quarterly earnings data on Wednesday. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.05 by $0.07, Zacks reports. McDonald’s had a net margin of 31.85% and a negative return on equity of 313.07%. The company had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.81 billion. During the same period in the previous year, the firm earned $2.83 earnings per share. McDonald’s’s revenue for the quarter was up 9.7% on a year-over-year basis.

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

• McDonald’s reported nearly $140 billion in 2025 system‑wide sales (up 5.5% in constant currency) and accelerated unit growth—~2,275 openings in 2025 and a target of ~2,600 gross openings in 2026 to reach 50,000 restaurants by end of 2027.
• U.S. value initiatives—McValue and the relaunch of Extra Value Meals—drove share gains with low‑income consumers, improved value/affordability scores in Q4, and coincided with higher franchisee cash flow.
• Marketing, loyalty and menu innovation powered engagement and sales—record campaigns (Minecraft, Monopoly, Grinch), ~210 million 90‑day active users, and successful beverage/menu tests with a planned McCafé beverage rollout later in 2026.
• Management cautioned about persistent macro and industry headwinds (China weakness), severe January weather that trimmed ~100 bps of Q1 performance, and higher interest expense and other risks that could pressure near‑term results.

McDonald’s Price Performance

Shares of MCD opened at $333.57 on Friday. The company has a 50-day moving average of $312.69 and a two-hundred day moving average of $308.07. The stock has a market cap of $237.55 billion, a price-to-earnings ratio of 27.94, a PEG ratio of 3.26 and a beta of 0.52. McDonald’s has a one year low of $283.47 and a one year high of $333.38.

McDonald’s Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd will be given a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.2%. McDonald’s’s payout ratio is 63.48%.

McDonald’s News Roundup

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

• Positive Sentiment: Q4 beat: McDonald’s reported stronger‑than‑expected Q4 results (revenue up ~9.7% YoY; EPS beat), driven by broad comparable‑sales gains that are the primary bullish catalyst. Read More.
• Positive Sentiment: Value strategy & loyalty: Management says Extra Value Meals and promotions brought back budget‑conscious customers; loyalty sales grew ~20% and active users rose ~19%, supporting sustainable traffic and check improvement. Read More.
• Positive Sentiment: Analyst upgrades and higher targets: Several shops raised ratings/targets after the beat — notable Argus upgrade to Buy with a $380 target and recent raises from Truist and BTIG — which supports further upside. Read More.
• Positive Sentiment: Capital returns support: Continued buyback history and a strong dividend (yield ~2.3%) are noted as structural supports for the share price and institutional demand. Read More.
• Neutral Sentiment: Brand/marketing buzz: Seasonal items and viral promotions (Shamrock Shake, McNugget kits) are driving attention and short‑term traffic but are unlikely to materially move long‑term forecasts. Read More.
• Neutral Sentiment: Menu experimentation: Tests of high‑protein menu options aim to capture shifting consumer trends (GLP‑1 era), but outcomes and scale remain uncertain. Read More.
• Negative Sentiment: Mixed analyst moves: Some firms trimmed targets or kept Hold/Neutral (Guggenheim cut PT to $320; TD Cowen reaffirmed Hold at $320), highlighting that not all analysts are convinced the upside is fully priced in. Read More.
• Negative Sentiment: Franchisee friction: Reports of franchisee resistance to centralized pricing/value initiatives pose an execution risk that could limit margin or rollout consistency in some markets. Read More.
• Negative Sentiment: Insider selling: A senior U.S. executive disclosed a sale (~$854k), which some investors may view as profit‑taking after the earnings pop. Read More.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on MCD shares. Oppenheimer raised shares of McDonald’s from a “market perform” rating to an “outperform” rating and set a $355.00 price target for the company in a report on Tuesday, January 6th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of McDonald’s in a research report on Wednesday, January 28th. UBS Group increased their price target on McDonald’s from $350.00 to $365.00 and gave the company a “buy” rating in a report on Thursday. Barclays raised their price objective on McDonald’s from $372.00 to $380.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, TD Cowen reaffirmed a “hold” rating and issued a $320.00 target price on shares of McDonald’s in a research report on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $337.04.

Insider Activity

In related news, EVP Manuel Jm Steijaert sold 6,567 shares of the stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $305.50, for a total value of $2,006,218.50. Following the completion of the sale, the executive vice president directly owned 4,606 shares of the company’s stock, valued at approximately $1,407,133. This represents a 58.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,486 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $320.00, for a total transaction of $795,520.00. Following the sale, the executive vice president owned 6,268 shares of the company’s stock, valued at approximately $2,005,760. This represents a 28.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 31,439 shares of company stock valued at $9,772,464 in the last 90 days. Company insiders own 0.25% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in MCD. Sumitomo Life Insurance Co. lifted its holdings in shares of McDonald’s by 0.9% during the fourth quarter. Sumitomo Life Insurance Co. now owns 8,848 shares of the fast-food giant’s stock worth $2,704,000 after buying an additional 76 shares during the last quarter. Wealthspire Advisors LLC boosted its holdings in shares of McDonald’s by 4.0% in the 4th quarter. Wealthspire Advisors LLC now owns 22,251 shares of the fast-food giant’s stock worth $6,801,000 after acquiring an additional 861 shares in the last quarter. Macquarie Group Ltd. raised its stake in shares of McDonald’s by 11.5% in the fourth quarter. Macquarie Group Ltd. now owns 74,557 shares of the fast-food giant’s stock worth $22,787,000 after acquiring an additional 7,686 shares during the last quarter. Gerber Kawasaki Wealth & Investment Management lifted its position in shares of McDonald’s by 3.2% during the fourth quarter. Gerber Kawasaki Wealth & Investment Management now owns 1,678 shares of the fast-food giant’s stock worth $513,000 after purchasing an additional 52 shares in the last quarter. Finally, Circle Wealth Management LLC grew its stake in shares of McDonald’s by 1.5% during the fourth quarter. Circle Wealth Management LLC now owns 2,792 shares of the fast-food giant’s stock valued at $853,000 after purchasing an additional 42 shares during the last quarter. 70.29% of the stock is owned by institutional investors.

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.