McDonald's FY2026 EPS Estimate Reduced by Erste Group Bank

Key Points

• Erste Group Bank trimmed its FY2026 EPS estimate for McDonald's to $13.20 (from $13.24) and downgraded the stock to a "Hold," versus a street consensus of $13.21.
• Recent results beat expectations: McDonald's reported $3.12 EPS (vs. $3.05 expected) and revenue of $7.01 billion, up 9.7% year‑over‑year.
• Analyst sentiment and insider activity are mixed: analysts' price targets cluster in the mid‑$300s with an average target of $340.93 and a consensus "Hold," while insiders sold about 71,990 shares (~$23.8M) over the past three months.

McDonald's Corporation (NYSE:MCD - Free Report) - Investment analysts at Erste Group Bank reduced their FY2026 earnings per share estimates for McDonald's in a report released on Monday, April 27th. Erste Group Bank analyst S. Lingnau now expects that the fast-food giant will earn $13.20 per share for the year, down from their previous estimate of $13.24. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for McDonald's' current full-year earnings is $13.21 per share.

Other research analysts have also issued research reports about the company. Oppenheimer upgraded McDonald's from a "market perform" rating to an "outperform" rating and set a $355.00 price target on the stock in a report on Tuesday, January 6th. Mizuho increased their price target on McDonald's from $300.00 to $325.00 and gave the stock a "neutral" rating in a report on Friday, February 6th. KeyCorp cut their price target on McDonald's from $354.00 to $345.00 and set an "overweight" rating on the stock in a report on Monday, April 20th. Morgan Stanley cut their price target on McDonald's from $335.00 to $334.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 21st. Finally, BTIG Research reiterated a "buy" rating and issued a $370.00 price target on shares of McDonald's in a report on Tuesday. Sixteen analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $340.93.

McDonald's Price Performance

NYSE MCD opened at $292.55 on Wednesday. The business has a 50 day simple moving average of $315.71 and a 200 day simple moving average of $312.01. McDonald's has a one year low of $283.47 and a one year high of $341.75. The stock has a market capitalization of $207.95 billion, a P/E ratio of 24.48, a P/E/G ratio of 2.68 and a beta of 0.53.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, topping the consensus estimate of $3.05 by $0.07. McDonald's had a negative return on equity of 343.90% and a net margin of 31.85%.The business had revenue of $7.01 billion during the quarter, compared to analysts' expectations of $6.81 billion. During the same quarter last year, the firm posted $2.83 earnings per share. The firm's revenue was up 9.7% on a year-over-year basis.

McDonald's Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd were issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Tuesday, March 3rd. McDonald's's dividend payout ratio (DPR) is currently 62.26%.

Insider Buying and Selling

In related news, EVP Jonathan Banner sold 6,201 shares of McDonald's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the sale, the executive vice president directly owned 2,291 shares in the company, valued at approximately $763,567.39. This trade represents a 73.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Christopher J. Kempczinski sold 26,277 shares of McDonald's stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $331.35, for a total value of $8,706,883.95. Following the sale, the chief executive officer owned 22,900 shares in the company, valued at $7,587,915. This trade represents a 53.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 71,990 shares of company stock worth $23,824,113 over the last three months. Company insiders own 0.26% of the company's stock.

Institutional Trading of McDonald's

A number of hedge funds have recently bought and sold shares of MCD. Norges Bank bought a new stake in McDonald's during the fourth quarter worth $2,890,438,000. Diamant Asset Management Inc. increased its position in 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 buying an additional 2,587,986 shares during the last quarter. J. Stern & Co. LLP increased its position in 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 buying an additional 2,515,515 shares during the last quarter. Viking Global Investors LP increased its position in McDonald's by 171.7% in the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock worth $913,157,000 after buying an additional 1,974,998 shares during the last quarter. Finally, Franklin Resources Inc. increased its position in McDonald's by 36.6% in the third quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock worth $1,336,155,000 after buying an additional 1,179,244 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s will roll out a six‑drink lineup of crafted beverages (refreshers and crafted sodas) in U.S. restaurants on May 6 — a direct push at higher‑margin beverage sales and a play to steal occasions from specialty coffee chains. This product extension is a clear revenue/margin lever for comparable‑store sales. McDonald’s introduces first-ever lineup of refreshers, crafted sodas
• Positive Sentiment: BTIG reaffirmed a "buy" and set a $370 price target — a notable bullish signal from a major shop that suggests upside vs. current levels and supports the stock’s rally. Benzinga report
• Positive Sentiment: Ongoing marketing tie‑ins (e.g., the Stranger Things Happy Meal and secret menu promotions) and viral moments keep brand engagement high, which helps traffic and frequency without large incremental marketing spend. McDonald's x Stranger Things Happy Meal
• Neutral Sentiment: Analysts are reworking growth and fair‑value assumptions — some raising targets into the mid‑$300s while others trim — reflecting debate over how much future growth is priced in. This creates volatility but also provides new catalyst dates tied to guidance and execution. Analyst target shifts
• Neutral Sentiment: Coca‑Cola’s resurgence and comments on crafted sodas highlight broader beverage category momentum — beneficial for McDonald’s if supplier innovation and pricing remain aligned, but competitive dynamics with coffee chains remain. Coca‑Cola crafted sodas coverage
• Negative Sentiment: Erste Group downgraded MCD from "buy" to "hold," and the stock recently experienced a pullback in choppy trading — reminders that valuation sensitivity and macro concerns can pressure the name despite solid fundamentals. Finviz downgrade note
• Negative Sentiment: Yesterday’s share decline (reported in market wrap coverage) shows short‑term volatility and profit‑taking risk that can amplify on mixed headlines or broader market weakness. Stock sank coverage

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.