McDonald’s FY2027 EPS Estimate Lifted by Erste Group Bank

McDonald’s Corporation (NYSE:MCD) – Analysts at Erste Group Bank upped their FY2027 earnings estimates for shares of McDonald’s in a report issued on Thursday, April 2nd. Erste Group Bank analyst S. Lingnau now expects that the fast-food giant will post earnings per share of $14.39 for the year, up from their previous forecast of $14.35. Erste Group Bank has a “Buy” rating on the stock. The consensus estimate for McDonald’s’ current full-year earnings is $12.25 per share.

Other analysts have also issued reports about the stock. Sanford C. Bernstein restated a “market perform” rating and issued a $340.00 price target on shares of McDonald’s in a research report on Thursday, February 12th. Citigroup raised their price target on shares of McDonald’s from $371.00 to $375.00 and gave the stock a “buy” rating in a research report on Thursday, February 12th. Oppenheimer upgraded shares of McDonald’s from a “market perform” rating to an “outperform” rating and set a $355.00 target price on the stock in a research report on Tuesday, January 6th. Jefferies Financial Group lifted their target price on shares of McDonald’s from $360.00 to $375.00 and gave the company a “buy” rating in a research report on Thursday, February 12th. Finally, KeyCorp lifted their target price on shares of McDonald’s from $340.00 to $354.00 and gave the company an “overweight” rating in a research report on Tuesday, March 3rd. Seventeen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, McDonald’s presently has an average rating of “Hold” and an average price target of $339.69.

McDonald’s Price Performance

NYSE MCD opened at $304.64 on Wednesday. The firm has a market capitalization of $216.41 billion, a price-to-earnings ratio of 25.49, a P/E/G ratio of 2.73 and a beta of 0.53. The company’s fifty day moving average is $321.60 and its two-hundred day moving average is $311.69. McDonald’s has a 52-week low of $283.47 and a 52-week high of $341.75.

McDonald’s (NYSE:MCD) last posted its quarterly earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.05 by $0.07. The company had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.81 billion. McDonald’s had a net margin of 31.85% and a negative return on equity of 343.90%. The business’s quarterly revenue was up 9.7% on a year-over-year basis. During the same period last year, the business posted $2.83 EPS.

Hedge Funds Weigh In On McDonald’s

Several institutional investors have recently added to or reduced their stakes in MCD. Norges Bank bought a new position in McDonald’s during the 4th quarter valued at about $2,890,438,000. J. Stern & Co. LLP lifted its holdings in McDonald’s by 9,867.5% during the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after purchasing an additional 2,515,515 shares during the last quarter. Viking Global Investors LP lifted its holdings in McDonald’s by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock valued at $913,157,000 after purchasing an additional 1,974,998 shares during the last quarter. Franklin Resources Inc. lifted its holdings in McDonald’s by 36.6% during the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant’s stock valued at $1,336,155,000 after purchasing an additional 1,179,244 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in McDonald’s by 111.3% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,071,296 shares of the fast-food giant’s stock valued at $629,446,000 after purchasing an additional 1,090,849 shares during the last quarter. 70.29% of the stock is owned by institutional investors.

Insider Buying and Selling at McDonald’s

In related news, CEO Christopher J. Kempczinski sold 26,276 shares of McDonald’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $333.54, for a total transaction of $8,764,097.04. Following the completion of the transaction, the chief executive officer directly owned 22,900 shares of the company’s stock, valued at $7,638,066. This trade represents a 53.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Jonathan Banner sold 6,201 shares of McDonald’s stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the transaction, the executive vice president directly owned 2,291 shares of the company’s stock, valued at $763,567.39. This represents a 73.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 71,657 shares of company stock valued at $23,722,204 in the last 90 days. Insiders own 0.25% of the company’s stock.

McDonald’s Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd were given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date was Tuesday, March 3rd. McDonald’s’s payout ratio is 62.26%.

Trending Headlines about McDonald’s

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

• Positive Sentiment: Company is expanding its value push (McValue 2.0: under $3 items, $4 breakfast deals, and $5–$6 bundles), which should support traffic and same?store sales resilience in a tighter consumer environment. Did McDonald’s New Value Menu and Pop Culture Deals Just Shift McDonald’s (MCD) Investment Narrative?
• Positive Sentiment: Pop?culture promotions (KPop “Demon Hunters” meals) are driving hype and incremental spending — collectible cards are re?selling for high prices, indicating strong demand and PR value. McDonald’s ‘KPop Demon Hunters’ cards are selling online for hundreds. What to know
• Positive Sentiment: Management and board adjustments signal operational focus and succession/leadership strengthening, which can support execution of the value and marketing strategy. McDonald’s strengthens leadership team
• Neutral Sentiment: Some menu experimentation is limited to select locations — could be incremental and hard to scale quickly, so impact on corporate performance is uncertain. McDonald’s shakes up menu with major changes – but only at certain locations
• Neutral Sentiment: Consumer safety/operations note: McDonald’s won’t cook medium?rare burgers (food?safety/procedure explanation) — unlikely to affect demand materially but relevant to quality perceptions. You Can’t Order A Medium-Rare Burger At McDonald’s And There’s A Reason
• Negative Sentiment: Viral “Big Arch” CEO taste?test clip has generated backlash and media scrutiny about tone and affordability messaging — reputational noise can pressure near?term sentiment and foot traffic if not contained. The Economic Divide Behind That McDonald’s CEO Viral Video
• Negative Sentiment: CEO has been in damage?control mode (first on?camera remarks), but continued coverage keeps the story front?and?center and may weigh on sentiment until the issue fades. McDonald’s CEO speaks to media for first time since his viral taste test video
• Negative Sentiment: Operational risk in the franchise system: a rival franchisee filing Chapter 11 (65 restaurants at risk) highlights sector?level pressures that could spill over into franchised operations and competitive dynamics. McDonald’s rival franchisee files Chapter 11, 65 restaurants at risk

McDonald’s Company Profile

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.