FY2027 EPS Estimates for McDonald's Cut by Erste Group Bank

Key Points

• Erste Group Bank lowered McDonald’s FY2027 EPS forecast to $13.96 from $14.00, still above the broader consensus estimate of $12.88.
• Analyst sentiment remains positive but measured: McDonald’s has a consensus “Moderate Buy” rating and an average price target of $321.35, despite several recent target-price reductions.
• McDonald’s recently beat quarterly EPS expectations ($3.38 versus $3.32) and reported 3.7% year-over-year revenue growth. The company also declared a quarterly dividend of $1.86 per share, equivalent to a 2.9% annualized yield.

McDonald's Corporation (NYSE:MCD - Free Report) - Equities research analysts at Erste Group Bank decreased their FY2027 earnings estimates for shares of McDonald's in a research note issued on Tuesday, September 8th. Erste Group Bank analyst S. Lingnau now forecasts that the fast-food giant will post earnings per share of $13.96 for the year, down from their prior forecast of $14.00. The consensus estimate for McDonald's' current full-year earnings is $12.88 per share.

MCD has been the topic of a number of other reports. Evercore set a $320.00 price objective on McDonald's in a research report on Thursday, July 23rd. Royal Bank Of Canada decreased their target price on McDonald's from $305.00 to $295.00 and set a "sector perform" rating for the company in a report on Wednesday, August 5th. Morgan Stanley dropped their price target on McDonald's from $322.00 to $319.00 and set an "equal weight" rating for the company in a research note on Wednesday, August 5th. Argus cut their price target on shares of McDonald's from $320.00 to $310.00 and set a "buy" rating on the stock in a report on Wednesday, August 26th. Finally, KeyCorp reduced their price objective on shares of McDonald's from $315.00 to $305.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have given a Hold rating to the company's stock. According to MarketBeat.com, McDonald's presently has a consensus rating of "Moderate Buy" and a consensus target price of $321.35.

McDonald's Price Performance

Shares of NYSE:MCD opened at $252.76 on Friday. The stock's 50-day moving average is $268.25 and its 200 day moving average is $287.04. The company has a market cap of $178.87 billion, a PE ratio of 20.53, a P/E/G ratio of 2.73 and a beta of 0.41. McDonald's has a 1 year low of $252.54 and a 1 year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating the consensus estimate of $3.32 by $0.06. The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company's quarterly revenue was up 3.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.19 earnings per share.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Tuesday, September 1st. McDonald's's payout ratio is 60.44%.

Institutional Trading of McDonald's

Hedge funds and other institutional investors have recently modified their holdings of the business. California State Teachers Retirement System increased its position in McDonald's by 27,036.7% during the 2nd quarter. California State Teachers Retirement System now owns 302,891,546 shares of the fast-food giant's stock valued at $81,874,614,000 after buying an additional 301,775,375 shares in the last quarter. Norges Bank bought a new stake in McDonald's in the fourth quarter worth $2,890,438,000. Bank of New York Mellon Corp bought a new stake in McDonald's in the second quarter worth $1,359,276,000. Diamant Asset Management Inc. grew its stake in shares of McDonald's by 30,979.0% in the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock worth $806,917,000 after acquiring an additional 2,587,986 shares during the last quarter. Finally, J. Stern & Co. LLP grew its stake in shares of McDonald's by 9,867.5% in the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock worth $776,608,000 after acquiring an additional 2,515,515 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting McDonald's

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

• Positive Sentiment: New seasonal beverages and limited-time meals—including a fall latte flavor, a Canada-exclusive offering, and a popular regional meal—could support customer traffic, digital engagement, and brand excitement. New fall latte article
• Positive Sentiment: Happy Meal promotions featuring SpongeBob and One Piece toys, along with National Cheeseburger Day giveaways, may increase visits and reinforce McDonald’s value-oriented marketing, although free and discounted food could limit near-term margins. Happy Meal toys article
• Neutral Sentiment: Recent Zacks coverage says MCD is attracting unusually high investor attention, but it does not identify a new earnings, guidance, or valuation catalyst. Zacks investor attention article
• Neutral Sentiment: Local stories cover a restaurant closure, charitable fundraising, menu history, and consumer reactions to individual products. These items may influence local perception but are unlikely to materially affect consolidated results. San Antonio restaurant closure article
• Negative Sentiment: Reports that McDonald’s faces potentially millions in fines related to disposable-cup use introduce an incremental regulatory and compliance cost risk. Disposable cup fines article
• Negative Sentiment: Critical coverage of several 2026 menu launches could signal uneven consumer reception, though the impact appears limited unless it translates into weaker comparable-store sales. Worst new menu items article

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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