Erste Group Bank Reduces Earnings Estimates for McDonald’s

McDonald’s Corporation (NYSE:MCD) – Analysts at Erste Group Bank reduced their FY2027 EPS estimates for McDonald’s in a research note issued to investors on Tuesday, September 8th. Erste Group Bank analyst S. Lingnau now anticipates that the fast-food giant will post earnings per share of $13.96 for the year, down from their previous forecast of $14.00. The consensus estimate for McDonald’s’ current full-year earnings is $12.88 per share.

Other equities research analysts also recently issued reports about the company. UBS Group set a $305.00 price objective on McDonald’s in a report on Wednesday, August 5th. Guggenheim dropped their price target on shares of McDonald’s from $320.00 to $290.00 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. Argus reduced their price target on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a research note on Wednesday, August 26th. Morgan Stanley decreased their price objective on shares of McDonald’s from $322.00 to $319.00 and set an “equal weight” rating for the company in a report on Wednesday, August 5th. Finally, Citigroup increased their price objective on shares of McDonald’s from $335.00 to $345.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $321.35.

McDonald’s Price Performance

MCD stock opened at $252.76 on Friday. The stock has a market capitalization of $178.87 billion, a P/E ratio of 20.53, a P/E/G ratio of 2.73 and a beta of 0.41. McDonald’s has a 1-year low of $252.54 and a 1-year high of $341.75. The business has a fifty day moving average price of $268.25 and a 200-day moving average price of $287.04.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same period in the previous year, the business earned $3.19 EPS. The firm’s revenue for the quarter was up 3.7% on a year-over-year basis.

Institutional Investors Weigh In On McDonald’s

Several hedge funds and other institutional investors have recently made changes to their positions in MCD. Brighton Jones LLC raised its holdings in McDonald’s by 21.6% in the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock worth $2,692,000 after purchasing an additional 1,649 shares during the period. Revolve Wealth Partners LLC lifted its position in shares of 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 buying an additional 52 shares in the last quarter. Sivia Capital Partners LLC grew its stake in shares of McDonald’s by 11.4% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock valued at $589,000 after acquiring an additional 206 shares during the period. United Bank grew its stake in shares of McDonald’s by 6.0% during the 2nd quarter. United Bank now owns 8,102 shares of the fast-food giant’s stock valued at $2,367,000 after acquiring an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. increased its holdings in McDonald’s by 2.5% in the 2nd quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock worth $3,780,000 after acquiring an additional 312 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s payout ratio is currently 60.44%.

More McDonald’s News

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

• Positive Sentiment: New seasonal beverages and limited-time meals—including a fall latte flavor, a Canada-exclusive offering, and a popular regional meal—could support customer traffic, digital engagement, and brand excitement. New fall latte article
• Positive Sentiment: Happy Meal promotions featuring SpongeBob and One Piece toys, along with National Cheeseburger Day giveaways, may increase visits and reinforce McDonald’s value-oriented marketing, although free and discounted food could limit near-term margins. Happy Meal toys article
• Neutral Sentiment: Recent Zacks coverage says MCD is attracting unusually high investor attention, but it does not identify a new earnings, guidance, or valuation catalyst. Zacks investor attention article
• Neutral Sentiment: Local stories cover a restaurant closure, charitable fundraising, menu history, and consumer reactions to individual products. These items may influence local perception but are unlikely to materially affect consolidated results. San Antonio restaurant closure article
• Negative Sentiment: Reports that McDonald’s faces potentially millions in fines related to disposable-cup use introduce an incremental regulatory and compliance cost risk. Disposable cup fines article
• Negative Sentiment: Critical coverage of several 2026 menu launches could signal uneven consumer reception, though the impact appears limited unless it translates into weaker comparable-store sales. Worst new menu items article

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.