Zacks Research Reduces Earnings Estimates for McDonald’s

McDonald’s Co. (NYSE:MCD) – Research analysts at Zacks Research decreased their FY2026 earnings per share (EPS) estimates for McDonald’s in a research report issued on Tuesday, November 12th. Zacks Research analyst H. Ray now forecasts that the fast-food giant will post earnings per share of $13.48 for the year, down from their previous forecast of $13.56. The consensus estimate for McDonald’s’ current full-year earnings is $11.77 per share.

A number of other research firms also recently weighed in on MCD. The Goldman Sachs Group increased their target price on McDonald’s from $284.00 to $325.00 and gave the company a “neutral” rating in a report on Tuesday, September 24th. Guggenheim cut McDonald’s from a “buy” rating to a “neutral” rating and cut their target price for the stock from $290.00 to $285.00 in a research report on Wednesday, October 23rd. Wells Fargo & Company boosted their price target on shares of McDonald’s from $285.00 to $350.00 and gave the stock an “overweight” rating in a research note on Monday, October 21st. UBS Group raised their target price on shares of McDonald’s from $305.00 to $345.00 and gave the company a “buy” rating in a report on Wednesday, October 9th. Finally, Argus raised McDonald’s from a “hold” rating to a “buy” rating in a research note on Tuesday, October 8th. Thirteen investment analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company’s stock. According to MarketBeat.com, McDonald’s currently has an average rating of “Moderate Buy” and a consensus target price of $319.46.

McDonald’s Trading Down 2.0 %

Shares of MCD opened at $292.52 on Friday. McDonald’s has a 12 month low of $243.53 and a 12 month high of $317.90. The business’s fifty day simple moving average is $300.00 and its two-hundred day simple moving average is $277.29. The company has a market cap of $209.63 billion, a price-to-earnings ratio of 25.68, a P/E/G ratio of 3.95 and a beta of 0.74.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, October 29th. The fast-food giant reported $3.23 EPS for the quarter, beating the consensus estimate of $3.18 by $0.05. McDonald’s had a negative return on equity of 175.42% and a net margin of 31.79%. The business had revenue of $6.87 billion during the quarter, compared to analyst estimates of $6.82 billion. During the same quarter last year, the firm posted $3.19 earnings per share. The company’s revenue for the quarter was up 2.7% on a year-over-year basis.

Institutional Trading of McDonald’s

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCD. Legacy Investment Solutions LLC bought a new position in McDonald’s during the third quarter worth about $25,000. RPg Family Wealth Advisory LLC bought a new position in McDonald’s in the 3rd quarter worth approximately $31,000. Kings Path Partners LLC bought a new position in McDonald’s in the second quarter valued at about $38,000. Hara Capital LLC acquired a new stake in shares of McDonald’s during the 3rd quarter worth approximately $44,000. Finally, Peterson Financial Group Inc. bought a new stake in shares of McDonald’s during the 3rd quarter valued at $58,000. Institutional investors and hedge funds own 70.29% of the company’s stock.

Insiders Place Their Bets

In related news, CEO Christopher J. Kempczinski sold 11,727 shares of the stock in a transaction that occurred on Monday, September 23rd. The stock was sold at an average price of $300.03, for a total value of $3,518,451.81. Following the transaction, the chief executive officer now owns 49,885 shares in the company, valued at approximately $14,966,996.55. This represents a 19.03 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Joseph M. Erlinger sold 1,098 shares of the stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $288.70, for a total transaction of $316,992.60. Following the transaction, the insider now directly owns 12,583 shares in the company, valued at $3,632,712.10. The trade was a 8.03 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 35,596 shares of company stock valued at $10,698,289 over the last three months. Company insiders own 0.23% of the company’s stock.

McDonald’s Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be paid a $1.77 dividend. This is an increase from McDonald’s’s previous quarterly dividend of $1.67. This represents a $7.08 dividend on an annualized basis and a yield of 2.42%. The ex-dividend date of this dividend is Monday, December 2nd. McDonald’s’s payout ratio is presently 58.65%.

McDonald’s Company Profile

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.