McDonald’s (NYSE:MCD – Get Free Report) announced its quarterly earnings data on Tuesday. The fast-food giant reported $3.38 EPS for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06, FiscalAI reports. The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 512.80%. The firm’s revenue was up 3.7% compared to the same quarter last year. During the same quarter last year, the firm earned $3.19 earnings per share.
Here are the key takeaways from McDonald’s’ conference call:
- Global comparable sales increased 1.3% in the second quarter, while systemwide sales rose 4% in constant currency; international markets delivered positive growth, though China remained challenging.
- U.S. comparable sales grew only 0.8%, with July comps slightly negative, as inconsistent execution of the under-$3 value menu, reduced digital offers, operational complexity, and an underperforming FIFA campaign weighed on traffic.
- Management is responding with more national and personalized digital offers, greater marketing support for proven value products, simplified restaurant deployments, and a planned crew retraining program to improve service and hospitality.
- The new beverage platform is exceeding expectations in the U.S., Canada, and Germany, generating higher checks, strong food attachment, and additional afternoon traffic; Red Bull Energizers are expected to add further momentum.
- McDonald’s pushed its target of reaching 50,000 restaurants to 2028 from 2027 because of inflationary development costs and a pressured consumer environment, while the projected 2026 foreign-exchange EPS benefit declined to approximately $0.15.
McDonald’s Stock Up 0.9%
Shares of McDonald’s stock traded up $2.59 during trading on Thursday, hitting $276.59. 2,182,479 shares of the company were exchanged, compared to its average volume of 3,885,276. McDonald’s has a fifty-two week low of $260.96 and a fifty-two week high of $341.75. The firm has a 50 day moving average price of $274.17 and a 200 day moving average price of $296.80. The stock has a market capitalization of $196.52 billion, a price-to-earnings ratio of 22.47, a P/E/G ratio of 2.89 and a beta of 0.41.
McDonald’s Dividend Announcement
Insider Buying and Selling at McDonald’s
In other news, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president directly owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 8,348 shares of company stock valued at $2,355,634 in the last three months. 0.26% of the stock is currently owned by company insiders.
Institutional Trading of McDonald’s
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. T. Rowe Price Investment Management Inc. increased its holdings in shares of McDonald’s by 97.9% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 18,601 shares of the fast-food giant’s stock worth $5,686,000 after buying an additional 9,201 shares during the last quarter. Compound Planning Inc. raised its holdings in shares of McDonald’s by 97.4% in the 4th quarter. Compound Planning Inc. now owns 15,617 shares of the fast-food giant’s stock worth $4,773,000 after purchasing an additional 7,706 shares during the period. Axxcess Wealth Management LLC raised its holdings in shares of McDonald’s by 3.7% in the 4th quarter. Axxcess Wealth Management LLC now owns 24,101 shares of the fast-food giant’s stock worth $7,366,000 after purchasing an additional 849 shares during the period. Birchwood Financial Partners Inc. acquired a new position in shares of McDonald’s in the 4th quarter valued at about $96,000. Finally, Strive Financial Group LLC purchased a new stake in shares of McDonald’s during the 4th quarter worth about $131,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.
Analyst Ratings Changes
A number of brokerages recently weighed in on MCD. Weiss Ratings lowered McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Cfra upgraded shares of McDonald’s to a “buy” rating in a report on Friday, May 8th. BTIG Research reissued a “buy” rating and set a $350.00 price target on shares of McDonald’s in a research note on Wednesday. Barclays dropped their price objective 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. Finally, Citigroup boosted their target price on McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a research report on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat, McDonald’s currently has an average rating of “Moderate Buy” and a consensus price target of $325.44.
Read Our Latest Analysis on MCD
Trending Headlines about McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: Q2 profit beat and global strength: McDonald’s reported adjusted earnings of $3.38 per share, above the $3.32 consensus estimate. Global comparable sales increased about 4%, while stronger franchised margins and solid international markets supported profitability despite a revenue shortfall. McDonald’s Q2 Earnings Beat on Franchised Margins, Sales Miss
- Positive Sentiment: Recovery plan and valuation support: Management appointed company veteran Skye Anderson to lead the U.S. business and is working to simplify value offerings, improve digital promotions, reduce restaurant workload and strengthen marketing. Analysts broadly retain constructive views; BTIG reaffirmed a Buy rating with a $350 price target, while other targets remain above the current share price. MCD Q2 Earnings Call Flags U.S. Execution Gaps
- Neutral Sentiment: Income appeal remains intact: A steady dividend and a Moderate Buy analyst consensus may attract longer-term investors, although Morgan Stanley, RBC and Baird recently lowered their price targets and maintained neutral-equivalent ratings. McDonald’s Stock Sell-Off: Justified Warning or Buying Opportunity?
- Negative Sentiment: U.S. execution and affordability concerns: Domestic comparable sales rose only 0.8%, as confusing promotions, fewer digital discounts and continued pressure on budget-conscious consumers reduced visits. July U.S. sales reportedly turned negative, increasing pressure on the turnaround plan. McDonald’s struggles to attract bargain-hungry customers
- Negative Sentiment: Competitive and growth headwinds: Burger King is gaining U.S. sales momentum after revamping the Whopper, while McDonald’s delayed its goal of reaching 50,000 restaurants from 2027 to 2028. Burger King’s US sales surge while McDonald’s growth flails in burger battle
About McDonald’s
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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