Q3 Earnings Forecast for McDonald's Issued By Zacks Research

Key Points

• Zacks Research has increased its Q3 2025 earnings estimate for McDonald's to $3.37 per share, up from $3.30.
• The consensus estimate for McDonald's full-year earnings is currently projected at $12.25 per share, with expectations for steady earnings growth through 2027.
• McDonald's will pay a quarterly dividend of $1.77 on September 16th, representing a 2.3% dividend yield and a payout ratio of 60.67%.

McDonald's Corporation (NYSE:MCD - Free Report) - Research analysts at Zacks Research lifted their Q3 2025 earnings estimates for shares of McDonald's in a note issued to investors on Wednesday, August 20th. Zacks Research analyst Team now forecasts that the fast-food giant will post earnings of $3.37 per share for the quarter, up from their prior estimate of $3.30. The consensus estimate for McDonald's' current full-year earnings is $12.25 per share. Zacks Research also issued estimates for McDonald's' FY2025 earnings at $12.35 EPS, Q1 2027 earnings at $3.14 EPS, Q2 2027 earnings at $3.79 EPS and FY2027 earnings at $14.66 EPS.

Several other equities analysts have also issued reports on the stock. Bank of America decreased their price target on shares of McDonald's from $327.00 to $322.00 and set a "neutral" rating for the company in a report on Friday, July 18th. Citigroup boosted their price target on shares of McDonald's from $364.00 to $365.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. TD Cowen boosted their price target on shares of McDonald's from $305.00 to $315.00 and gave the company a "hold" rating in a report on Wednesday, August 6th. Morgan Stanley upped their target price on shares of McDonald's from $324.00 to $326.00 and gave the stock an "equal weight" rating in a research note on Monday, July 14th. Finally, BMO Capital Markets reaffirmed an "outperform" rating and issued a $350.00 target price (up from $345.00) on shares of McDonald's in a research note on Thursday, August 7th. Thirteen research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $326.38.

McDonald's Stock Up 0.2%

Shares of MCD stock opened at $313.8010 on Monday. McDonald's has a 12-month low of $276.53 and a 12-month high of $326.32. The firm has a market capitalization of $223.93 billion, a price-to-earnings ratio of 26.89, a price-to-earnings-growth ratio of 3.20 and a beta of 0.52. The firm has a fifty day moving average of $299.02 and a 200-day moving average of $305.92.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.15 by $0.04. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The company had revenue of $6.84 billion during the quarter, compared to analyst estimates of $6.68 billion. During the same quarter in the previous year, the business earned $2.97 EPS. The firm's revenue was up 5.4% on a year-over-year basis.

Institutional Investors Weigh In On McDonald's

Institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC raised its holdings in McDonald's by 21.6% in the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock valued at $2,692,000 after acquiring an additional 1,649 shares during the period. Revolve Wealth Partners LLC raised its holdings in McDonald's by 2.8% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock valued at $563,000 after acquiring an additional 52 shares during the period. Bank Pictet & Cie Europe AG raised its holdings in McDonald's by 15.3% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 209,464 shares of the fast-food giant's stock valued at $60,722,000 after acquiring an additional 27,774 shares during the period. GHE LLC raised its holdings in McDonald's by 0.9% in the 4th quarter. GHE LLC now owns 14,677 shares of the fast-food giant's stock valued at $4,255,000 after acquiring an additional 136 shares during the period. Finally, Oxford Asset Management LLP bought a new position in McDonald's in the 4th quarter valued at about $410,000. 70.29% of the stock is owned by institutional investors.

Insider Activity

In other news, EVP Desiree Ralls-Morrison sold 2,487 shares of the company's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total value of $770,970.00. Following the sale, the executive vice president directly owned 8,754 shares of the company's stock, valued at approximately $2,713,740. This represents a 22.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CMO Edith Morgan Flatley sold 976 shares of the company's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $303.50, for a total transaction of $296,216.00. Following the completion of the sale, the chief marketing officer directly owned 7,882 shares in the company, valued at approximately $2,392,187. The trade was a 11.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 7,341 shares of company stock valued at $2,229,327 in the last 90 days. 0.25% of the stock is owned by company insiders.

McDonald's Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd will be issued a $1.77 dividend. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 2nd. McDonald's's dividend payout ratio is presently 60.67%.

About McDonald's

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.