Erste Group Bank Reduces Earnings Estimates for McDonald's

Key Points

• Erste Group Bank slightly lowered its FY2027 EPS forecast for McDonald’s to $13.78 from $13.80, though the estimate remains above the current consensus of $12.84.
• Analyst sentiment remains broadly positive, with McDonald’s holding a consensus “Moderate Buy” rating and an average price target of $295.64, despite several brokerages recently reducing their targets.
• McDonald’s shares were trading around $252.50, while the company raised its quarterly dividend to $1.93, equivalent to a 3.1% yield and a $7.72 annualized payout.

McDonald's Corporation (NYSE:MCD - Free Report) - Stock analysts at Erste Group Bank reduced their FY2027 EPS estimates for shares of McDonald's in a research note issued on Wednesday, October 21st. Erste Group Bank analyst S. Lingnau now expects that the fast-food giant will earn $13.78 per share for the year, down from their previous forecast of $13.80. The consensus estimate for McDonald's' current full-year earnings is $12.84 per share.

Several other brokerages have also recently commented on MCD. Mizuho reduced their target price on shares of McDonald's from $300.00 to $290.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Gordon Haskett lowered their price target on shares of McDonald's from $315.00 to $285.00 and set a "buy" rating on the stock in a research note on Thursday, September 24th. TD Cowen cut their price target on shares of McDonald's from $282.00 to $270.00 and set a "hold" rating on the stock in a research report on Thursday, September 24th. Wells Fargo & Company reduced their price objective on shares of McDonald's from $300.00 to $270.00 and set an "overweight" rating for the company in a research note on Monday, October 5th. Finally, Seaport Research Partners assumed coverage on McDonald's in a report on Wednesday, September 16th. They issued a "neutral" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $295.64.

McDonald's Trading Up 2.5%

Shares of NYSE MCD opened at $252.50 on Friday. The company has a fifty day moving average price of $249.91 and a 200 day moving average price of $270.11. The firm has a market cap of $178.68 billion, a PE ratio of 20.51, a PEG ratio of 2.76 and a beta of 0.44. McDonald's has a 1-year low of $229.20 and a 1-year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period last year, the business posted $3.19 earnings per share. The business's revenue for the quarter was up 3.7% compared to the same quarter last year.

Institutional Investors Weigh In On McDonald's

Several hedge funds and other institutional investors have recently made changes to their positions in MCD. Ascentis Wealth Management LLC raised its stake in McDonald's by 4,008.8% during the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant's stock worth $22,768,000 after buying an additional 82,180 shares during the last quarter. Ridgewood Investments LLC bought a new stake in McDonald's during the third quarter valued at $1,026,000. Borer Denton & Associates Inc. grew its holdings in McDonald's by 16.9% during the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant's stock worth $3,746,000 after acquiring an additional 2,000 shares during the period. HighTower Advisors LLC grew its holdings in McDonald's by 7.1% during the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant's stock worth $397,822,000 after acquiring an additional 97,060 shares during the period. Finally, Viking Fund Management LLC raised its position in shares of McDonald's by 60.0% in the 3rd quarter. Viking Fund Management LLC now owns 40,000 shares of the fast-food giant's stock worth $9,238,000 after acquiring an additional 15,000 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald's Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a $1.93 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.1%. This is a boost from McDonald's's previous quarterly dividend of $1.86. McDonald's's dividend payout ratio (DPR) is 60.44%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s has fallen roughly 28% from its 52-week high and now offers a dividend yield near 3%–3.2%, making the stock more attractive to value and income investors. The company’s latest dividend increase also reinforces its status as a “Dividend King.” McDonald’s Has Lost a Fifth of Its Value in 2026
• Positive Sentiment: Analysts expect McDonald’s third-quarter earnings to rise by a single-digit percentage. Investors are watching whether chicken launches, limited-time offers, the returning McRib and seasonal promotions can revive U.S. comparable sales. McDonald’s Q3 2026 Earnings: What to Expect
• Positive Sentiment: New marketing initiatives, including a celebrity-led chef’s table experience and limited-time menu offerings, could generate publicity and incremental demand, although their financial impact is likely limited. McDonald’s Chef’s Table Experience
• Neutral Sentiment: The stock is being viewed as a potential bargain for patient investors, but commentary remains divided because the valuation discount reflects challenges that may persist. Is McDonald’s Stock a Real Bargain?
• Negative Sentiment: Weak customer traffic and consumer sensitivity to prices are pressuring U.S. comparable sales. Taco Bell’s new $2 offering highlights the intense value competition McDonald’s faces. Taco Bell Rolls Out $2 Item
• Negative Sentiment: McDonald’s is facing a federal lawsuit alleging AI-assisted price fixing; the company disputes the allegations and says the complaint contains inaccuracies. Any legal or reputational fallout could weigh on sentiment. McDonald’s AI-Fueled Price-Fixing Lawsuit

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.

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