McDonald's (NYSE:MCD) Shares Up 1.8% on Analyst Upgrade

Key Points

• McDonald’s shares rose 1.8% after Argus raised its price target from $310 to $320 and maintained a Buy rating.
• Analyst sentiment is broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $297.82, though several firms have issued lower targets or Hold ratings.
• The company beat quarterly earnings expectations, reporting $3.57 per share versus a $3.38 estimate, but revenue of $7.16 billion fell short of forecasts. McDonald’s also increased its quarterly dividend from $1.86 to $1.93 per share.

McDonald's Corporation (NYSE:MCD - Get Free Report)'s stock price was up 1.8% on Monday after Argus raised their price target on the stock from $310.00 to $320.00. Argus currently has a buy rating on the stock. McDonald's traded as high as $283.26 and last traded at $281.5380. 4,944,932 shares traded hands during trading, an increase of 13% from the average session volume of 4,370,894 shares. The stock had previously closed at $276.52.

Several other research firms have also recently weighed in on MCD. Loop Capital lowered their price target on shares of McDonald's from $301.00 to $273.00 and set a "hold" rating on the stock in a report on Wednesday, August 5th. Mizuho lowered their price target on shares of McDonald's from $290.00 to $260.00 and set a "neutral" rating on the stock in a research report on Friday, October 30th. KeyCorp lifted their price objective on shares of McDonald's from $280.00 to $307.00 and gave the stock an "overweight" rating in a research note on Thursday. Needham & Company LLC reissued a "buy" rating on shares of McDonald's in a report on Monday, September 21st. Finally, BTIG Research increased their target price on shares of McDonald's from $295.00 to $305.00 and gave the stock a "buy" rating in a research report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $297.82.

More McDonald's News

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

• Positive Sentiment: Profitability exceeded expectations, supported by cost discipline, refranchising and digital offers. Management said targeted promotions helped reverse the decline in U.S. traffic late in the quarter, though the improvement’s durability remains to be seen. The top 5 analyst questions from McDonald's’s Q3 2026 earnings call
• Positive Sentiment: McDonald’s is expanding its Uber partnership across 14 markets, adding in-app ordering and cross-platform loyalty benefits. The move may support delivery reach and customer engagement, although its financial impact was not quantified. McDonald's Expands Uber Partnership in 14 Markets
• Neutral Sentiment: A low-priced bundle being tested at 1,900 restaurants could be pivotal to attracting price-sensitive diners and sustaining the recovery. Its effect on traffic and margins is not yet clear. MCD Stock Outlook: Wall Street Eyes a Potential Upside Breakout After Q3 Results
• Negative Sentiment: Sales and traffic remain key risks: quarterly revenue came in below consensus, and reports cite declining U.S. guest counts and a 0.2% drop in U.S. comparable sales. Analysts also question whether the post-earnings rally assumes a turnaround before traffic has sustainably recovered. McDonald’s Stock Jumped 7% Last Week. Is Its Earnings Beat Really That Good?

Institutional Trading of McDonald's

Several large investors have recently made changes to their positions in MCD. State Street Corp boosted its stake in shares of McDonald's by 1.8% in the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock valued at $9,752,921,000 after purchasing an additional 646,675 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in McDonald's during the 2nd quarter worth approximately $1,359,276,000. Arrowstreet Capital Limited Partnership increased its position in McDonald's by 17.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant's stock worth $1,130,587,000 after purchasing an additional 533,448 shares in the last quarter. Swiss National Bank lifted its stake in McDonald's by 6.9% in the 1st quarter. Swiss National Bank now owns 2,089,980 shares of the fast-food giant's stock valued at $649,545,000 after purchasing an additional 134,480 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in McDonald's by 3.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,909,321 shares of the fast-food giant's stock valued at $593,366,000 after purchasing an additional 62,562 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Stock Performance

The firm has a market cap of $199.23 billion, a P/E ratio of 22.27, a P/E/G ratio of 3.20 and a beta of 0.42. The company's 50 day moving average is $248.76 and its 200 day moving average is $282.57.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share for the quarter, topping analysts' consensus estimates of $3.38 by $0.19. The firm had revenue of $7.16 billion for the quarter, compared to analysts' expectations of $7.28 billion. McDonald's had a net margin of 32.38% and a negative return on equity of 671.56%. The company's revenue was up 1.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.22 earnings per share. On average, equities research analysts anticipate that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Increases Dividend

The company 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. This represents a $7.72 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, December 1st. This is a boost from McDonald's's previous quarterly dividend of $1.86. McDonald's's payout ratio is currently 61.08%.

McDonald's Company Profile

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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