McDonald’s Corporation (NYSE:MCD) Receives Average Recommendation of “Hold” from Analysts

Shares of McDonald’s Corporation (NYSE:MCD) have been given an average recommendation of “Hold” by the thirty-one ratings firms that are covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, sixteen have assigned a hold recommendation and thirteen have issued a buy recommendation on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $328.88.

MCD has been the subject of several research reports. Wells Fargo & Company raised their price target on McDonald’s from $340.00 to $345.00 and gave the company an “overweight” rating in a report on Thursday, November 6th. Guggenheim increased their price target on McDonald’s from $295.00 to $310.00 and gave the stock a “neutral” rating in a research report on Wednesday, November 19th. Oppenheimer upgraded shares of McDonald’s from a “market perform” rating to an “outperform” rating and set a $355.00 target price for the company in a research report on Tuesday, January 6th. Royal Bank Of Canada assumed coverage on shares of McDonald’s in a research note on Wednesday, October 8th. They issued a “sector perform” rating and a $320.00 price objective on the stock. Finally, Piper Sandler reiterated a “neutral” rating and issued a $325.00 price target on shares of McDonald’s in a research note on Wednesday, October 22nd.

Key McDonald’s News

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

• Positive Sentiment: McDonald’s Canada locked a $1 coffee price (and previously promoted $5 meal pricing), a consumer-friendly move expected to sustain traffic and PR momentum in a key market, though it may slightly pressure short-term margins. McDonald’s Canada freezes coffee at $1 for the next year
• Positive Sentiment: Company is investing in AI to address operational challenges (order accuracy, drive‑thru efficiency and staffing), which could produce medium‑term cost savings and better throughput. McDonald’s bets on AI in 2026 to fix a major problem
• Positive Sentiment: Planned changes to drive‑thru lanes and operations aim to boost throughput and reduce wait times — a direct unit-level productivity lever that can improve sales per store. McDonald’s is about to make big changes to its drive-thru lanes
• Positive Sentiment: Marketing and menu moves (Pokémon Happy Meal return, Big Arch rollout, a new permanent item) should drive near‑term traffic and incremental AUV gains. These are low‑capital, high‑impact plays for comps. Pokémon Happy Meal return Big Arch Returns to McDonald’s—but Only Select Stores
• Positive Sentiment: Recent reports show a revived “old‑school” strategy lifted sales ~2.4% at some units — evidence that targeted tactics can restore momentum. McDonald’s Sales Jump 2.4% After They Revived This Old School Strategy
• Neutral Sentiment: Zacks and other outlets note heightened investor attention on MCD — useful context but not a direct directional catalyst unless followed by earnings or guidance surprises. Investors Heavily Search McDonald’s Corporation
• Neutral Sentiment: Earnings previews expect single‑digit EPS growth next quarter, so results or guidance could move the stock either way — watch the upcoming report. What to Expect From McDonald’s Next Quarterly Earnings Report
• Neutral Sentiment: CEO commentary on food trends and localized menu experiments highlights ongoing product innovation; useful for brand positioning but indirect for immediate earnings. McDonald’s CEO reveals 3 food trends that could shape 2026
• Negative Sentiment: Local expansion setback: a city rejected a McDonald’s “city restaurant” plan — a reminder that real estate/permit risks can slow growth in specific markets. McDonald’s city restaurant plan rejected
• Negative Sentiment: Insider selling: Joseph Erlinger (President, Intl. Ops) sold ~2,626 shares (~$805k), trimming his stake by ~33% — may be read by some investors as reduced insider conviction. SEC Filing
• Negative Sentiment: Legal risk: a class‑action suit alleges the McRib lacks “actual rib meat,” which could create litigation expense and negative publicity if it escalates. McDonald’s faces class action fraud lawsuit over lack of ‘actual rib meat’ in McRib

Insider Activity at McDonald’s

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,486 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $320.00, for a total value of $795,520.00. Following the sale, the executive vice president owned 6,268 shares in the company, valued at $2,005,760. This trade represents a 28.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Ian Frederick Borden sold 17,134 shares of the company’s stock in a transaction on Friday, November 21st. The stock was sold at an average price of $310.00, for a total transaction of $5,311,540.00. Following the transaction, the chief financial officer owned 26,353 shares of the company’s stock, valued at $8,169,430. This trade represents a 39.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 45,142 shares of company stock valued at $13,841,169. Company insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

A number of institutional investors and hedge funds have recently bought and sold shares of MCD. Brighton Jones LLC lifted its stake in shares of McDonald’s by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock worth $2,692,000 after buying an additional 1,649 shares during the period. Revolve Wealth Partners LLC grew its stake in McDonald’s by 2.8% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant’s stock valued at $563,000 after purchasing an additional 52 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of McDonald’s in the first quarter valued at about $368,000. Jones Financial Companies Lllp lifted its holdings in shares of McDonald’s by 24.6% during the first quarter. Jones Financial Companies Lllp now owns 173,782 shares of the fast-food giant’s stock worth $53,483,000 after purchasing an additional 34,319 shares during the period. Finally, Nova Wealth Management Inc. purchased a new stake in McDonald’s in the first quarter valued at approximately $26,000. Institutional investors and hedge funds own 70.29% of the company’s stock.

McDonald’s Price Performance

Shares of MCD stock opened at $308.52 on Friday. The company has a fifty day moving average price of $308.61 and a two-hundred day moving average price of $305.32. McDonald’s has a one year low of $276.53 and a one year high of $326.32. The stock has a market cap of $219.71 billion, a P/E ratio of 26.32, a P/E/G ratio of 3.06 and a beta of 0.53.

McDonald’s (NYSE:MCD) last issued its earnings results on Wednesday, November 5th. The fast-food giant reported $3.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.11). McDonald’s had a net margin of 32.04% and a negative return on equity of 280.89%. The firm had revenue of $7.08 billion during the quarter, compared to the consensus estimate of $7.10 billion. During the same period in the previous year, the company posted $3.23 earnings per share. The firm’s revenue for the quarter was up 3.0% compared to the same quarter last year. As a group, equities research analysts anticipate that McDonald’s will post 12.25 EPS for the current fiscal year.

McDonald’s Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, December 15th. Stockholders of record on Monday, December 1st were issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.4%. This is an increase from McDonald’s’s previous quarterly dividend of $1.77. The ex-dividend date of this dividend was Monday, December 1st. McDonald’s’s dividend payout ratio (DPR) is currently 63.48%.

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.