Erste Group Bank Predicts Reduced Earnings for McDonald’s

McDonald’s Corporation (NYSE:MCD) – Stock analysts at Erste Group Bank cut their FY2026 EPS estimates for shares of McDonald’s in a research note issued to investors on Friday, June 5th. Erste Group Bank analyst S. Lingnau now forecasts that the fast-food giant will post earnings per share of $12.98 for the year, down from their prior forecast of $13.00. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for McDonald’s’ current full-year earnings is $12.93 per share.

A number of other brokerages also recently issued reports on MCD. Barclays dropped their price target on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. UBS Group raised their price objective on shares of McDonald’s from $350.00 to $365.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Tigress Financial raised their price objective on shares of McDonald’s from $360.00 to $385.00 and gave the stock a “buy” rating in a report on Friday, March 6th. Wells Fargo & Company dropped their price objective on shares of McDonald’s from $355.00 to $320.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Finally, Weiss Ratings downgraded shares of McDonald’s from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, May 29th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $336.26.

McDonald’s Stock Up 0.3%

Shares of NYSE MCD opened at $282.98 on Thursday. The firm’s 50-day moving average price is $290.34 and its 200-day moving average price is $307.07. The company has a market cap of $201.06 billion, a PE ratio of 23.33, a PEG ratio of 2.81 and a beta of 0.41. McDonald’s has a 52-week low of $271.85 and a 52-week high of $341.75.

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

McDonald’s Dividend Announcement

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

Insider Activity at McDonald’s

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’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 transaction, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction that occurred on 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 transaction, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 11,307 shares of company stock worth $3,262,622 in the last ninety days. Insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

Institutional investors and hedge funds have recently modified their holdings of the stock. Your Advocates Ltd. LLP bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $27,000. Park Place Capital Corp raised its position in shares of McDonald’s by 95.7% during the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after buying an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $29,000. Abound Financial LLC bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $30,000. Finally, Purpose Unlimited Inc. bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $31,000. Institutional investors own 70.29% of the company’s stock.

Key McDonald’s News

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

• Positive Sentiment: McDonald’s launched FIFA World Cup meal promotions with collectible cups, toys, and Squishmallows, which could boost customer traffic and merchandise-led demand. McDonald’s FIFA World Cup meals with Squishmallows and 9 collectible cups are here
• Positive Sentiment: McDonald’s is testing AI at select drive-thrus, potentially improving speed, labor efficiency, and long-term margins if the rollout works well. McDonald’s testing AI drive-thru system at select US locations
• Positive Sentiment: Analysts continue to view McDonald’s favorably, with one report saying the stock carries a “Moderate Buy” consensus. McDonald’s Corporation (NYSE:MCD) Given Consensus Rating of “Moderate Buy” by Analysts
• Positive Sentiment: Commentary from Jim Cramer framed McDonald’s as a stock investors can build into over time, reinforcing the view that it is a defensive long-term holding. Jim Cramer Discusses a Strategic Buying Plan to Build a Great Cost Basis in McDonald’s
• Neutral Sentiment: McDonald’s is also getting attention from articles about its collectible World Cup cups and menu shake-up, which are mainly promotional and likely more relevant to customer engagement than to fundamentals. McDonald’s World Cup 2026 meal deal – how to collect all the cups and which players are on them
• Negative Sentiment: An insider sale by McDonald’s executive Joseph M. Erlinger may create some caution, even though insider transactions do not necessarily signal a change in business outlook. Joseph M. Erlinger insider sale
• Negative Sentiment: Recent reporting has also highlighted customer frustration over a drive-thru change and workplace culture/safety concerns, which could pressure sentiment if they persist. McDonald’s quietly makes a major change to its drive thru and customers are furious

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.