McDonald’s FY2027 EPS Estimate Lifted by Erste Group Bank

McDonald’s Corporation (NYSE:MCD) – Investment analysts at Erste Group Bank increased their FY2027 earnings estimates for shares of McDonald’s in a report released on Thursday, April 2nd. Erste Group Bank analyst S. Lingnau now expects that the fast-food giant will earn $14.39 per share for the year, up from their prior forecast of $14.35. Erste Group Bank has a “Buy” rating on the stock. The consensus estimate for McDonald’s’ current full-year earnings is $12.25 per share.

MCD has been the topic of a number of other research reports. KeyCorp raised their price target on shares of McDonald’s from $340.00 to $354.00 and gave the company an “overweight” rating in a report on Tuesday, March 3rd. Barclays raised their price target on shares of McDonald’s from $372.00 to $380.00 and gave the company an “overweight” rating in a report on Thursday, February 12th. Guggenheim cut their price target on shares of McDonald’s from $325.00 to $320.00 and set a “neutral” rating on the stock in a report on Friday, February 13th. Mizuho raised their price target on shares of McDonald’s from $300.00 to $325.00 and gave the company a “neutral” rating in a report on Friday, February 6th. Finally, UBS Group raised their price target on shares of McDonald’s from $350.00 to $365.00 and gave the company a “buy” rating in a report on Thursday, February 12th. Seventeen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $339.69.

McDonald’s Stock Down 1.7%

MCD stock opened at $304.64 on Wednesday. McDonald’s has a 12-month low of $283.47 and a 12-month high of $341.75. The company has a market cap of $216.41 billion, a price-to-earnings ratio of 25.49, a PEG ratio of 2.73 and a beta of 0.53. The company has a 50 day moving average of $321.60 and a two-hundred day moving average of $311.69.

McDonald’s (NYSE:MCD) last released its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.05 by $0.07. McDonald’s had a net margin of 31.85% and a negative return on equity of 343.90%. The company had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.81 billion. During the same quarter in the prior year, the firm earned $2.83 EPS. The company’s revenue was up 9.7% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of MCD. Evergreen Private Wealth LLC grew its stake in McDonald’s by 162.5% in the 3rd quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant’s stock valued at $26,000 after buying an additional 52 shares during the last quarter. Your Advocates Ltd. LLP acquired a new position in McDonald’s in the 4th quarter valued at $27,000. Park Place Capital Corp grew its stake in McDonald’s by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after buying an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. acquired a new stake in McDonald’s in the 4th quarter worth $29,000. Finally, Abound Financial LLC acquired a new stake in McDonald’s in the 4th quarter worth $30,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Joseph M. Erlinger sold 2,626 shares of the firm’s stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $325.25, for a total value of $854,106.50. Following the transaction, the insider directly owned 5,398 shares in the company, valued at approximately $1,755,699.50. This trade represents a 32.73% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Christopher J. Kempczinski sold 26,277 shares of the firm’s stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $331.35, for a total transaction of $8,706,883.95. Following the completion of the transaction, the chief executive officer owned 22,900 shares in the company, valued at $7,587,915. The trade was a 53.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 71,657 shares of company stock valued at $23,722,204. 0.25% of the stock is owned by corporate insiders.

McDonald’s Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were paid a $1.86 dividend. The ex-dividend date was Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a yield of 2.4%. McDonald’s’s dividend payout ratio (DPR) is presently 62.26%.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: Company is expanding its value push (McValue 2.0: under $3 items, $4 breakfast deals, and $5–$6 bundles), which should support traffic and same‑store sales resilience in a tighter consumer environment. Did McDonald’s New Value Menu and Pop Culture Deals Just Shift McDonald’s (MCD) Investment Narrative?
• Positive Sentiment: Pop‑culture promotions (KPop “Demon Hunters” meals) are driving hype and incremental spending — collectible cards are re‑selling for high prices, indicating strong demand and PR value. McDonald’s ‘KPop Demon Hunters’ cards are selling online for hundreds. What to know
• Positive Sentiment: Management and board adjustments signal operational focus and succession/leadership strengthening, which can support execution of the value and marketing strategy. McDonald’s strengthens leadership team
• Neutral Sentiment: Some menu experimentation is limited to select locations — could be incremental and hard to scale quickly, so impact on corporate performance is uncertain. McDonald’s shakes up menu with major changes – but only at certain locations
• Neutral Sentiment: Consumer safety/operations note: McDonald’s won’t cook medium‑rare burgers (food‑safety/procedure explanation) — unlikely to affect demand materially but relevant to quality perceptions. You Can’t Order A Medium-Rare Burger At McDonald’s And There’s A Reason
• Negative Sentiment: Viral “Big Arch” CEO taste‑test clip has generated backlash and media scrutiny about tone and affordability messaging — reputational noise can pressure near‑term sentiment and foot traffic if not contained. The Economic Divide Behind That McDonald’s CEO Viral Video
• Negative Sentiment: CEO has been in damage‑control mode (first on‑camera remarks), but continued coverage keeps the story front‑and‑center and may weigh on sentiment until the issue fades. McDonald’s CEO speaks to media for first time since his viral taste test video
• Negative Sentiment: Operational risk in the franchise system: a rival franchisee filing Chapter 11 (65 restaurants at risk) highlights sector‑level pressures that could spill over into franchised operations and competitive dynamics. McDonald’s rival franchisee files Chapter 11, 65 restaurants at risk

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.