McDonald’s (NYSE:MCD) Posts Earnings Results, Beats Estimates By $0.19 EPS

McDonald’s (NYSE:MCD) issued its earnings results on Wednesday. The fast-food giant reported $3.57 EPS for the quarter, beating analysts’ consensus estimates of $3.38 by $0.19, FiscalAI reports. McDonald’s had a net margin of 32.38% and a negative return on equity of 671.56%. The business had revenue of $7.16 billion for the quarter, compared to the consensus estimate of $7.28 billion. During the same quarter last year, the firm posted $3.22 EPS. The business’s revenue for the quarter was up 1.1% compared to the same quarter last year.

Here are the key takeaways from McDonald’s’ conference call:

• Global comparable sales rose 1.5% and system sales grew 4% in constant currency. U.S. comparable sales fell 0.2%, but turned positive in September, with management citing improving baseline trends into October.
• Adjusted EPS was $3.57, up 11% year over year on a constant-currency basis. International comparable sales increased 1.4% in operated markets and 4.2% in developmental licensed markets, though France and China remained areas of weakness.
• McDonald’s is testing new U.S. entry-level value bundles at about 1,900 restaurants, while franchisees at roughly 4,000 more restaurants have adopted similar offers. The company plans to use test results to shape a national program targeted for early 2027; management did not provide a specific fourth-quarter U.S. sales forecast.
• Specialty beverages continued to generate incremental sales across several markets, with U.S. beverage-including checks about 50% above the full-day average and most units sold after lunch. McDonald’s plans to expand the platform in Europe and views beverages as a long-term growth opportunity.
• The company expects about 2,500 gross restaurant openings in 2026, below its prior target of 2,600, and capital spending of about $3.7 billion, at the low end of its range. Management also cited continued disruption in France and a challenging consumer environment in China.

McDonald’s Trading Down 0.2%

NYSE MCD traded down $0.52 during trading hours on Friday, reaching $277.52. 4,074,560 shares of the company traded hands, compared to its average volume of 4,356,908. McDonald’s has a 12 month low of $229.20 and a 12 month high of $341.75. The stock has a market capitalization of $196.39 billion, a PE ratio of 21.96, a PEG ratio of 3.20 and a beta of 0.42. The company has a 50 day moving average of $248.43 and a two-hundred day moving average of $282.70.

McDonald’s Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a yield of 2.8%. McDonald’s’s payout ratio is currently 61.08%.

Wall Street Analysts Forecast Growth

MCD has been the topic of several research reports. Tigress Financial raised their price objective on McDonald’s from $385.00 to $390.00 and gave the company a “buy” rating in a research report on Friday, July 17th. DZ Bank reiterated a “buy” rating on shares of McDonald’s in a research note on Thursday, September 24th. Oppenheimer dropped their target price on McDonald’s from $325.00 to $295.00 and set an “outperform” rating on the stock in a report on Thursday, September 24th. TD Cowen boosted their price target on McDonald’s from $270.00 to $285.00 and gave the stock a “hold” rating in a research report on Wednesday. Finally, KeyCorp upped their price target on McDonald’s from $280.00 to $307.00 and gave the stock an “overweight” rating in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $297.82.

McDonald’s News Roundup

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

• Positive Sentiment: Several analysts raised their targets: Argus moved to $320 and kept a Buy rating; Citigroup, Wells Fargo and KeyCorp also lifted targets and maintained positive ratings. Argus rating information
• Neutral Sentiment: McDonald’s is testing affordable meal bundles at nearly 1,900 U.S. restaurants, with a broader value platform planned for early 2027. Early signs from deals and digital promotions are encouraging, but the test has yet to demonstrate a sustained traffic recovery. McDonald’s plans new value bundles after U.S. traffic falls
• Neutral Sentiment: Third-quarter adjusted EPS of $3.57 beat estimates, supported by franchise margins and international growth. However, revenue of $7.16 billion came in below forecasts, leaving results mixed. McDonald’s Q3 earnings beat, but U.S. traffic pressures growth
• Negative Sentiment: U.S. comparable sales declined 0.2% in the quarter, and traffic remains a concern as customers respond to cost-of-living pressures. Freedom Broker also downgraded MCD from Buy to Hold and cut its price target to $298. Freedom Broker rating information
• Negative Sentiment: McDonald’s U.S. marketing chief is stepping down amid sales weakness, adding uncertainty as the company works to improve its domestic performance. McDonald’s U.S. CMO steps down as sales decline

About McDonald’s

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.