KeyCorp Has Lowered Expectations for McDonald's (NYSE:MCD) Stock Price

Key Points

• KeyCorp cut its price target on McDonald's from $345 to $330 but kept an "overweight" rating, while the Street consensus remains a "Moderate Buy" with a $337.48 average target (17 Buys, 14 Holds, 1 Sell).
• McDonald's beat Q1 estimates with $2.83 EPS (vs. $2.74 est.) and $6.52B revenue (up 9.4% YoY), driven by value menus, digital loyalty and product momentum, and management is pushing aggressive China unit growth (targeting 10,000 mainland locations by end-2028).
• Insiders have been selling: CEO Chris Kempczinski sold 26,276 shares (~$8.76M) and insiders sold about 71,990 shares totaling ~$23.8M in the last 90 days, while institutional investors own roughly 70.3% of the stock.

McDonald's (NYSE:MCD - Get Free Report) had its price objective lowered by analysts at KeyCorp from $345.00 to $330.00 in a research note issued on Friday,Benzinga reports. The firm presently has an "overweight" rating on the fast-food giant's stock. KeyCorp's target price indicates a potential upside of 16.25% from the company's previous close.

Several other equities analysts also recently commented on the stock. Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and upped their price target for the company from $260.00 to $306.00 in a research note on Thursday, April 23rd. Argus raised McDonald's from a "hold" rating to a "buy" rating and set a $380.00 price target on the stock in a research report on Friday, February 13th. Weiss Ratings cut McDonald's from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, April 27th. Wells Fargo & Company upped their target price on McDonald's from $345.00 to $355.00 and gave the company an "overweight" rating in a research report on Thursday, February 12th. Finally, Citigroup increased their target price on McDonald's from $371.00 to $375.00 and gave the stock a "buy" rating in a report on Thursday, February 12th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $337.48.

McDonald's Trading Down 0.1%

MCD opened at $283.87 on Friday. The stock's fifty day simple moving average is $311.40 and its 200 day simple moving average is $311.40. McDonald's has a 1-year low of $282.15 and a 1-year high of $341.75. The stock has a market cap of $201.78 billion, a PE ratio of 23.75, a price-to-earnings-growth ratio of 2.63 and a beta of 0.43.

McDonald's (NYSE:MCD - Get Free Report) last announced 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. The business had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a net margin of 31.85% and a negative return on equity of 343.90%. McDonald's's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.67 EPS. Equities analysts forecast that McDonald's will post 13.17 earnings per share for the current year.

Insider Activity at McDonald's

In other news, CEO Christopher J. Kempczinski sold 26,276 shares of the stock in a transaction on Friday, February 13th. The stock was sold at an average price of $333.54, for a total value of $8,764,097.04. Following the completion of the transaction, the chief executive officer directly owned 22,900 shares in the company, valued at approximately $7,638,066. This represents a 53.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Joseph M. Erlinger sold 333 shares of the company's stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $302.72, for a total value of $100,805.76. Following the completion of the transaction, the insider directly owned 8,067 shares of the company's stock, valued at approximately $2,442,042.24. The trade was a 3.96% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 71,990 shares of company stock worth $23,824,113. Corporate insiders own 0.26% of the company's stock.

Institutional Inflows and Outflows

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

Key Stories Impacting McDonald's

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

• Positive Sentiment: Q1 beat — McDonald's reported Q1 revenue of about $6.52B and adjusted EPS of $2.83, topping estimates; global comparable sales rose ~3.8% and systemwide sales topped $34B, which drove the stock lift after the print. McDONALD'S REPORTS FIRST QUARTER 2026 RESULTS
• Positive Sentiment: Value + loyalty momentum — Management credited value-focused menus, digital loyalty programs and viral menu hits (e.g., the Big Arch burger and new drinks) for driving traffic and higher checks, signaling the company can defend sales even in a tougher consumer backdrop. McDonald’s Value Menu and Loyalty Fueled Q1 Beat Could Be A Game Changer For McDonald's (MCD)
• Positive Sentiment: International expansion — McDonald's highlighted China as a key growth market, targeting aggressive unit growth (10,000 mainland China locations by end of 2028), which supports longer-term revenue upside. While many international brands retreat, McDonald's is supersizing its China business
• Neutral Sentiment: Options and trader interest — Elevated options activity and attention from traders after the beat could amplify intraday volatility but doesn't change fundamentals; worth watching for short-term flow.
• Negative Sentiment: Management caution — CEO Chris Kempczinski warned of a worsening "K‑shaped" consumer environment and said higher gas prices could disproportionately hit lower-income customers, which could pressure traffic if fuel/headline inflation stays elevated. McDonald's CEO just shared some bad news about the K-shaped economy
• Negative Sentiment: Analyst/pricing pushback — TD Cowen trimmed its price target (from $330 to $300) and gave a "hold," reflecting upside limits and reminding investors some analysts view the beat as priced-in or short-lived.
• Negative Sentiment: Reputational/operational headwinds — Recent reports of consumer pushback on certain actions and intensified competition in chicken/value segments could increase marketing or promotional costs and margin pressure if sustained. McDonald’s Is Facing Intense Pushback After It Did What No Company Should Ever Do

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.

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