Zacks Research Forecasts McDonald's' Q2 Earnings (NYSE:MCD)

Key Points

• Zacks Research lowered its Q2 2026 earnings estimate for McDonald’s to $3.33 per share from $3.39, signaling a slightly softer outlook ahead of the report.
• McDonald’s last quarter beat analyst expectations, posting $2.83 EPS versus $2.74 expected, while revenue rose 9.4% year over year to $6.52 billion.
• Wall Street remains broadly constructive: the stock has a Moderate Buy consensus with an average price target of $334.45, even as several firms recently trimmed targets.

McDonald's Corporation (NYSE:MCD - Free Report) - Zacks Research reduced their Q2 2026 earnings per share estimates for McDonald's in a note issued to investors on Thursday, May 21st. Zacks Research analyst Team now expects that the fast-food giant will earn $3.33 per share for the quarter, down from their previous estimate of $3.39. The consensus estimate for McDonald's' current full-year earnings is $12.93 per share. Zacks Research also issued estimates for McDonald's' Q3 2026 earnings at $3.45 EPS, Q4 2026 earnings at $3.34 EPS, FY2026 earnings at $12.95 EPS, Q1 2027 earnings at $3.07 EPS, Q2 2027 earnings at $3.60 EPS, Q3 2027 earnings at $3.74 EPS, Q4 2027 earnings at $3.73 EPS, FY2027 earnings at $14.14 EPS, Q1 2028 earnings at $3.34 EPS and FY2028 earnings at $15.40 EPS.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating the consensus estimate of $2.74 by $0.09. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same quarter in the prior year, the business earned $2.67 earnings per share. The firm's revenue for the quarter was up 9.4% on a year-over-year basis.

Several other equities research analysts have also recently issued reports on the company. TD Cowen cut their price target on McDonald's from $330.00 to $300.00 and set a "hold" rating for the company in a research note on Thursday, May 7th. KeyCorp cut their price target on McDonald's from $345.00 to $330.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Tigress Financial boosted their price target on McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a research note on Friday, March 6th. Weiss Ratings cut McDonald's from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, April 27th. Finally, Barclays cut their price target on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Seventeen equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $334.45.

McDonald's Trading Up 0.1%

Shares of MCD stock opened at $282.48 on Monday. The stock has a market cap of $200.70 billion, a P/E ratio of 23.29, a price-to-earnings-growth ratio of 2.81 and a beta of 0.43. The stock has a 50 day simple moving average of $299.71 and a 200 day simple moving average of $309.34. McDonald's has a 1 year low of $271.98 and a 1 year high of $341.75.

Institutional Investors Weigh In On McDonald's

Several institutional investors and hedge funds have recently added to or reduced their stakes in MCD. Norges Bank bought a new stake in McDonald's during the fourth quarter worth $2,890,438,000. Diamant Asset Management Inc. lifted its stake in McDonald's by 30,979.0% during 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 purchasing an additional 2,587,986 shares during the last quarter. J. Stern & Co. LLP lifted its stake in McDonald's by 9,867.5% during 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 purchasing an additional 2,515,515 shares during the last quarter. Viking Global Investors LP lifted its stake in McDonald's by 171.7% during 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 purchasing an additional 1,974,998 shares during the last quarter. Finally, Franklin Resources Inc. increased its holdings in shares of McDonald's by 36.6% during 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 in the last quarter. 70.29% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other McDonald's news, insider Joseph M. Erlinger sold 333 shares of the company's stock in a transaction on Thursday, April 23rd. The stock was sold at an average price of $302.72, for a total transaction of $100,805.76. Following the completion of the sale, the insider directly owned 8,067 shares in the company, valued at $2,442,042.24. This represents a 3.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 5,585 shares of company stock worth $1,769,209 in the last three months. 0.26% of the stock is owned by corporate insiders.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd will be paid a dividend of $1.86 per share. The ex-dividend date is Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.6%. McDonald's's dividend payout ratio is presently 61.34%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald's declared a quarterly cash dividend of $1.86 per share, reinforcing its appeal as a dependable income stock and signaling ongoing confidence in cash generation. McDONALD'S ANNOUNCES QUARTERLY CASH DIVIDEND
• Positive Sentiment: Coverage highlighted McDonald's efforts to refresh its menu and customer experience, including new beverage additions, AI-driven drive-thru concepts, and other innovation-focused changes that could support traffic and sales. McDonald’s CEO shares major beverage menu additions
• Neutral Sentiment: McDonald's confirmed plans for a restaurant in historic Castlemaine, a small expansion item that is unlikely to materially move the stock on its own. McDonald's confirms plan for restaurant in historic Castlemaine
• Neutral Sentiment: Analyst commentary suggested McDonald's investment story is shifting as growth and valuation expectations are reset, which reflects changing sentiment rather than a clear operational surprise. Why The McDonald's (MCD) Investment Story Is Shifting As Analysts Reset Growth And Valuation
• Negative Sentiment: Articles about “shrinkflation” and smaller McNuggets could pressure sentiment if consumers view McDonald's as offering less value, potentially weighing on brand perception. Shrinkflation hits McDonald's as customers say McNuggets are half the size they used to be
• Negative Sentiment: Coverage noting that customers are divided on McDonald's specialty drinks suggests product experimentation may not be universally resonating yet. Why McDonald's Customers Are Divided On Its Specialty Drinks

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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