Erste Group Bank Predicts Reduced Earnings for McDonald's

McDonald's Corporation (NYSE:MCD - Free Report) - Equities researchers at Erste Group Bank reduced their FY2026 earnings estimates for shares of McDonald's in a research report issued on Friday, June 5th. Erste Group Bank analyst S. Lingnau now expects that the fast-food giant will post earnings per share of $12.98 for the year, down from their previous estimate of $13.00. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for McDonald's' current full-year earnings is $12.93 per share.

Several other research analysts have also issued reports on MCD. Citigroup increased their price target on shares of McDonald's from $371.00 to $375.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Barclays decreased their price target on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Wells Fargo & Company decreased their price target on shares of McDonald's from $355.00 to $320.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Morgan Stanley set a $331.00 price target on shares of McDonald's in a research note on Friday, May 8th. Finally, Argus upgraded shares of McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price target for the company in a research note on Friday, February 13th. Sixteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, McDonald's has a consensus rating of "Moderate Buy" and a consensus target price of $336.26.

McDonald's Price Performance

Shares of McDonald's stock opened at $282.98 on Thursday. The company has a 50-day moving average of $290.34 and a 200 day moving average of $307.07. The firm has a market cap of $201.06 billion, a price-to-earnings ratio of 23.33, a PEG ratio of 2.81 and a beta of 0.41. McDonald's has a 1 year low of $271.85 and a 1 year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. During the same period last year, the company posted $2.67 EPS. The company's quarterly revenue was up 9.4% compared to the same quarter last year.

Institutional Trading of McDonald's

A number of institutional investors and hedge funds have recently bought and sold shares of MCD. Your Advocates Ltd. LLP bought a new stake in McDonald's during the 4th quarter valued at about $27,000. Park Place Capital Corp increased its stake in McDonald's by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after purchasing an additional 45 shares in the last quarter. IFC & Insurance Marketing Inc. purchased a new stake in shares of McDonald's during the 4th quarter valued at about $29,000. Abound Financial LLC purchased a new stake in shares of McDonald's during the 4th quarter valued at about $30,000. Finally, DecisionPoint Financial LLC boosted its holdings in shares of McDonald's by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after acquiring an additional 97 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

Insider Transactions at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction dated 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 sale, the insider owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 11,307 shares of company stock valued at $3,262,622. 0.26% of the stock is owned by company insiders.

McDonald's Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd will be paid a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is currently 61.34%.

Key McDonald's News

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

• Positive Sentiment: McDonald’s launched FIFA World Cup meal promotions with collectible cups, toys, and Squishmallows, which could boost customer traffic and merchandise-led demand. McDonald's FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Positive Sentiment: McDonald’s is testing AI at select drive-thrus, potentially improving speed, labor efficiency, and long-term margins if the rollout works well. McDonald’s testing AI drive-thru system at select US locations
• Positive Sentiment: Analysts continue to view McDonald’s favorably, with one report saying the stock carries a “Moderate Buy” consensus. McDonald's Corporation NYSE: MCD Given Consensus Rating of "Moderate Buy" by Analysts
• Positive Sentiment: Commentary from Jim Cramer framed McDonald’s as a stock investors can build into over time, reinforcing the view that it is a defensive long-term holding. Jim Cramer Discusses a Strategic Buying Plan to Build a Great Cost Basis in McDonald’s
• Neutral Sentiment: McDonald’s is also getting attention from articles about its collectible World Cup cups and menu shake-up, which are mainly promotional and likely more relevant to customer engagement than to fundamentals. McDonald’s World Cup 2026 meal deal – how to collect all the cups and which players are on them
• Negative Sentiment: An insider sale by McDonald’s executive Joseph M. Erlinger may create some caution, even though insider transactions do not necessarily signal a change in business outlook. Joseph M. Erlinger insider sale
• Negative Sentiment: Recent reporting has also highlighted customer frustration over a drive-thru change and workplace culture/safety concerns, which could pressure sentiment if they persist. McDonald's quietly makes a major change to its drive thru and customers are furious

About McDonald's

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.

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