Research Analysts Issue Forecasts for McDonald's Q3 Earnings

Key Points

• Zacks Research lowered McDonald’s Q3 2026 EPS forecast to $3.36 from $3.45, while projecting full-year 2026 EPS of $12.84.
• McDonald’s latest quarter beat EPS expectations at $3.38 versus $3.32, but revenue of $7.10 billion slightly missed estimates; sales still rose 3.7% year over year.
• Analyst sentiment remains positive, with a “Moderate Buy” consensus and an average price target of $325.44. The company also declared a quarterly dividend of $1.86 per share, representing a 2.8% yield.

McDonald's Corporation (NYSE:MCD - Free Report) - Research analysts at Zacks Research cut their Q3 2026 EPS estimates for shares of McDonald's in a research report issued to clients and investors on Tuesday, August 18th. Zacks Research analyst Team now forecasts that the fast-food giant will post earnings per share of $3.36 for the quarter, down from their prior forecast of $3.45. The consensus estimate for McDonald's' current full-year earnings is $12.88 per share. Zacks Research also issued estimates for McDonald's' Q4 2026 earnings at $3.26 EPS, FY2026 earnings at $12.84 EPS, Q1 2027 earnings at $3.04 EPS, Q2 2027 earnings at $3.49 EPS, Q3 2027 earnings at $3.61 EPS, Q4 2027 earnings at $3.63 EPS, FY2027 earnings at $13.77 EPS, Q1 2028 earnings at $3.28 EPS, Q2 2028 earnings at $3.77 EPS and FY2028 earnings at $14.96 EPS.

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

Several other analysts also recently weighed in on the company. Rothschild & Co Redburn upgraded McDonald's from a "sell" rating to a "neutral" rating and boosted their price target for the company from $260.00 to $306.00 in a research note on Thursday, April 23rd. Barclays reduced their price target on shares of McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $295.00 price objective on shares of McDonald's in a report on Wednesday, August 5th. JPMorgan Chase & Co. decreased their target price on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Finally, Mizuho lowered their price target on shares of McDonald's from $300.00 to $290.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, McDonald's presently has an average rating of "Moderate Buy" and an average price target of $325.44.

McDonald's Price Performance

NYSE MCD opened at $267.15 on Wednesday. The company has a market cap of $189.04 billion, a price-to-earnings ratio of 21.70, a PEG ratio of 3.05 and a beta of 0.41. The stock's fifty day moving average price is $273.27 and its 200 day moving average price is $294.49. McDonald's has a 1 year low of $260.96 and a 1 year high of $341.75.

Institutional Trading of McDonald's

Institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new position in shares of McDonald's in the fourth quarter valued at approximately $2,890,438,000. Bank of New York Mellon Corp purchased a new stake in shares of McDonald's during the second quarter worth approximately $1,359,276,000. Diamant Asset Management Inc. raised its stake in McDonald's by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock valued at $806,917,000 after purchasing an additional 2,587,986 shares during the last quarter. J. Stern & Co. LLP lifted its holdings in McDonald's by 9,867.5% in the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock valued at $776,608,000 after purchasing an additional 2,515,515 shares in the last quarter. Finally, Viking Global Investors LP lifted its holdings in McDonald's by 171.7% in the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock valued at $913,157,000 after purchasing an additional 1,974,998 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

Insider Activity at McDonald's

In related news, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 8,348 shares of company stock worth $2,355,634. 0.26% of the stock is owned by corporate insiders.

McDonald's Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. McDonald's's dividend payout ratio is currently 60.44%.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s launched a limited-time Hello Kitty x Godzilla Happy Meal featuring eight collectible toys. The high-profile collaboration could drive family visits, engagement and short-term sales. McDonald’s has 8 new Hello Kitty x Godzilla Happy Meal toys
• Positive Sentiment: New fall beverages, limited-time menu items, afternoon offerings aimed at Starbucks and gas-pump savings promotions give MCD additional tools to increase traffic beyond its core lunch and dinner business. McDonald’s Takes Direct Aim at Starbucks
• Positive Sentiment: An employee scheduling and transportation app reportedly helped one franchisee reduce missed-shift costs by about $35,000 per month, suggesting potential restaurant-level efficiency benefits. Missed shifts were costly to this McDonald’s. An app has fixed the problem
• Positive Sentiment: Analysts note that MCD’s valuation is more attractive after its decline, while one bullish view sees substantial upside toward the roughly $316 consensus target. The company also remains viewed as a dependable dividend stock. McDonald’s Keeps Cratering: Why One Bullish Analyst Says 50% Gains Lie Ahead
• Neutral Sentiment: McDonald’s latest quarterly earnings beat estimates, but revenue slightly missed forecasts. Franchise strength supported results, while investors remain focused on U.S. traffic and margins. McDonald’s Q2 Earnings Beat Puts U.S. Traffic and Margins in Focus
• Negative Sentiment: Numerator data showed sales among low-income customers fell 2.4% during the latest quarter, with Burger King gaining ground. This highlights the risk that elevated menu prices are pushing budget-conscious diners toward competitors. McDonald’s is losing ground to rivals like Burger King with a key customer group
• Negative Sentiment: Coverage flags rising beef and operating costs, difficult value execution and continued pressure on restaurant traffic. CEOs also cited cautious consumers and broader economic concerns, increasing execution risk for MCD. Burger King is taking a bite out of McDonald’s lunch

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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