Brokers Set Expectations for McDonald’s FY2026 Earnings

McDonald’s Corporation (NYSE:MCD) – Equities research analysts at Erste Group Bank lowered their FY2026 earnings per share (EPS) estimates for shares of McDonald’s in a research note issued to investors on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now expects that the fast-food giant will earn $12.87 per share for the year, down from their previous forecast of $12.92. The consensus estimate for McDonald’s’ current full-year earnings is $12.85 per share. Erste Group Bank also issued estimates for McDonald’s’ FY2027 earnings at $13.80 EPS.

MCD has been the topic of several other reports. Rothschild & Co Redburn decreased their target price on shares of McDonald’s from $306.00 to $285.00 in a research report on Wednesday, August 26th. Wells Fargo & Company lowered their price objective on McDonald’s from $300.00 to $270.00 and set an “overweight” rating for the company in a research note on Monday, October 5th. Sanford C. Bernstein decreased their price target on McDonald’s from $295.00 to $250.00 and set a “market perform” rating on the stock in a report on Thursday, October 8th. Guggenheim dropped their price objective on shares of McDonald’s from $290.00 to $250.00 and set a “neutral” rating for the company in a research note on Monday, October 5th. Finally, Loop Capital cut their price objective on shares of McDonald’s from $301.00 to $273.00 and set a “hold” rating on the stock in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $295.94.

McDonald’s Stock Up 0.2%

McDonald’s stock opened at $235.67 on Tuesday. McDonald’s has a 52-week low of $229.20 and a 52-week high of $341.75. The firm’s fifty day moving average is $254.71 and its 200 day moving average is $273.77. The company has a market cap of $166.77 billion, a price-to-earnings ratio of 19.14, a PEG ratio of 2.64 and a beta of 0.44.

McDonald’s (NYSE:MCD) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating 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 572.06%. The firm had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same period last year, the firm posted $3.19 earnings per share. McDonald’s’s revenue for the quarter was up 3.7% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in MCD. NorthCrest Asset Manangement LLC grew its stake in McDonald’s by 48.6% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 6,312 shares of the fast-food giant’s stock worth $1,495,000 after acquiring an additional 2,064 shares in the last quarter. Perpetual Ltd increased its holdings in shares of McDonald’s by 8.8% in the 3rd quarter. Perpetual Ltd now owns 2,839 shares of the fast-food giant’s stock valued at $656,000 after acquiring an additional 229 shares during the period. Woodstock Corp raised its holdings in McDonald’s by 1.5% in the third quarter. Woodstock Corp now owns 14,937 shares of the fast-food giant’s stock worth $3,450,000 after purchasing an additional 227 shares in the last quarter. Gilpin Wealth Management LLC acquired a new stake in McDonald’s in the third quarter valued at approximately $115,000. Finally, Jacobs & Co. CA lifted its holdings in shares of McDonald’s by 2.5% during the 3rd quarter. Jacobs & Co. CA now owns 44,303 shares of the fast-food giant’s stock valued at $10,231,000 after purchasing an additional 1,076 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

McDonald’s Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be issued a dividend of $1.93 per share. This represents a $7.72 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date is Tuesday, December 1st. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: Analysts’ consensus price target is $295.94, substantially above the current trading level, suggesting Wall Street sees potential recovery. McDonald’s also benefits from a powerful global brand, a heavily franchised model that generates cash flow, and a growing dividend. McDonald’s Corporation Stock Has Consensus Target Price of $295.94 McDonald’s Has a Powerful Brand and a Growing Dividend
• Positive Sentiment: A former hedge fund manager described MCD as “moderately undervalued” after its decline to roughly four-year lows, arguing that the selloff may create a buying opportunity for long-term investors. McDonald’s Stock Moderately Undervalued
• Neutral Sentiment: McDonald’s is emphasizing chicken and beverages to drive growth, but consumer-spending data indicates Chick-fil-A and coffee chains are gaining more traction in those categories. The strategy could help diversify sales, though execution remains uncertain. McDonald’s Is Leaning Into Chicken and Drinks to Grow
• Negative Sentiment: The Restaurant NEXT overhaul is facing resistance from franchisees, who may need to spend about $800,000 per U.S. drive-thru location on technology and operational upgrades. Investors are questioning whether the investment will generate adequate returns, adding execution and margin risk. McDonald’s $800,000 Overhaul Hits Resistance
• Negative Sentiment: Promotions and value meals have not yet produced strong enough demand, raising concerns that McDonald’s may need to sacrifice pricing power or increase discounts to attract budget-conscious customers. McDonald’s Could Still Go Lower
• Negative Sentiment: Additional negative headlines include an individual restaurant’s poor ranking and a lawsuit alleging AI-driven pricing practices. Unverified social-media claims that McDonald’s lost a lawsuit to chef Jamie Oliver have no proof and do not appear to represent a confirmed corporate event. McDonald’s Sued Over AI Pricing Claims

About McDonald’s

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.