McDonald’s (NYSE:MCD) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

McDonald’s (NYSE:MCD) issued its quarterly earnings data on Tuesday. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06, FiscalAI reports. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same quarter last year, the business earned $3.19 EPS. The firm’s quarterly revenue was up 3.7% on a year-over-year basis.

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 Price Performance

Shares of McDonald’s stock traded up $5.15 on Tuesday, hitting $270.38. 2,695,550 shares of the company’s stock traded hands, compared to its average volume of 3,857,508. The company has a fifty day moving average of $274.55 and a two-hundred day moving average of $297.32. McDonald’s has a one year low of $260.96 and a one year high of $341.75. The company has a market capitalization of $192.10 billion, a price-to-earnings ratio of 22.23, a price-to-earnings-growth ratio of 2.91 and a beta of 0.41.

McDonald’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s payout ratio is currently 61.34%.

Insider Activity at McDonald’s

In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was 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 approximately $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’s stock in a transaction 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 sale, the executive vice president owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 8,348 shares of company stock worth $2,355,634. Insiders own 0.26% of the company’s stock.

Institutional Trading of McDonald’s

Several large investors have recently made changes to their positions in the company. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $29,000. Swiss RE Ltd. acquired a new stake in McDonald’s in the 4th quarter valued at $36,000. Greenline Wealth Management LLC bought a new stake in McDonald’s during the 4th quarter valued at $55,000. Imprint Wealth LLC acquired a new position in McDonald’s during the third quarter worth $60,000. Finally, Ankerstar Wealth LLC acquired a new position in McDonald’s during the fourth quarter worth $68,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s reported second-quarter earnings per share of $3.38, ahead of the $3.32 analyst consensus. Revenue increased 3.7% year over year to $7.10 billion, supporting the company’s profitability story. McDonald’s Reports Second Quarter 2026 Results
• Positive Sentiment: The company appointed longtime executive Skye Anderson as president of McDonald’s USA. Her mandate is to improve restaurant execution, strengthen value offerings and accelerate growth across nearly 14,000 U.S. locations, potentially providing a catalyst for a turnaround. McDonald’s Names Skye Anderson as U.S. President
• Neutral Sentiment: McDonald’s launched its first Crocs-themed Happy Meal in the United Kingdom. The promotion could support brand engagement and short-term traffic, though its financial impact is likely limited relative to U.S. sales trends. McDonald’s Launches Crocs Happy Meal
• Negative Sentiment: U.S. comparable sales rose just 0.8%, slowing sharply from 2.5% a year earlier and missing expectations. Domestic traffic declined as cautious consumers, particularly lower-income customers, reduced restaurant spending. McDonald’s U.S. Sales Disappoint
• Negative Sentiment: Value promotions failed to attract enough diners amid higher gas prices, inflationary pressure and broader economic anxiety. Investors may view the results as evidence that McDonald’s needs stronger menu innovation and service improvements to regain momentum in its largest market. McDonald’s U.S. Sales Growth Stalls
• Negative Sentiment: Although the earnings per share beat was encouraging, quarterly revenue of $7.10 billion fell slightly short of the $7.13 billion consensus, reinforcing concerns that slowing sales—not profitability—is the company’s main near-term challenge. McDonald’s Beats Earnings Estimates

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. Robert W. Baird set a $305.00 price target on shares of McDonald’s in a research report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft set a $325.00 price objective on McDonald’s in a report on Thursday, July 9th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of McDonald’s in a report on Monday, June 22nd. Tigress Financial upped their price target on McDonald’s from $385.00 to $390.00 and gave the company a “buy” rating in a research report on Friday, July 17th. Finally, Barclays cut their price objective on McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, McDonald’s presently has an average rating of “Moderate Buy” and a consensus target price of $331.92.

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.