McDonald’s posunul cíl na 50 000 restaurací na rok 2028 kvůli vyšším nákladům a slabší poptávce spotřebitelů. V roce 2026 stále plánuje asi 2 600 hrubých otevření.
Key Takeaways McDonald's delayed its 50,000-restaurant target to 2028 amid higher costs and consumer pressure.MCD still plans about 2,600 gross openings in 2026, its fastest restaurant growth period ever.McDonald's says new openings support growth, while return quality remains central to development. McDonald’s Corporation (MCD - Free Report) has pushed its target of reaching 50,000 restaurants globally to 2028 from the end of 2027, citing higher development costs and a pressured consumer environment. The adjustment follows a review of its restaurant pipeline and signals a more measured approach to expansion.
The decision reinforces McDonald’s established focus on investment returns. The company adjusted its opening pace to support appropriate returns on new locations, emphasizing the quality of development alongside the number of openings. It continues to see significant opportunities to expand its footprint despite the revised schedule.
Despite the adjustment, McDonald’s said it remains in the fastest period of restaurant growth in its history. The company remains on track to open approximately 2,600 gross restaurants in 2026. New openings are contributing to growth, with second-quarter systemwide sales increasing 4% year over year in constant currency.
For McDonald’s, moderating expansion could help preserve the financial appeal of new locations as investment costs rise. The longer timeline provides flexibility to pursue growth at a pace consistent with its return objectives. This supports a disciplined approach to development, with new-restaurant performance remaining the key indicator of success.
Key Competitors Taking Different Paths on Unit GrowthStarbucks Corporation (SBUX - Free Report) is taking a more selective approach to coffeehouse development as it works to build a stronger store base. Management said every new coffeehouse must “earn its place,” while net new company-operated unit growth in North America may remain modest through fiscal 2027. Starbucks is also gaining greater visibility into underperforming locations that could be closed while rebuilding its U.S. development pipeline and directing near-term resources toward coffeehouse uplifts, where early results are showing transaction gains. International markets are expected to remain a meaningful contributor to unit growth, supporting the company’s fiscal 2026 target of approximately 600-650 net new coffeehouses.
Dutch Bros Inc. (BROS - Free Report) continues to pursue a faster unit expansion strategy, supported by strong new-shop productivity and a growing development pipeline. The company opened 48 system shops in the second quarter and has approximately 90% of the pipeline needed to reach 2,029 shops by 2029. Management said new-shop productivity remained strong alongside rising systemwide AUVs, while several newer markets were annualizing above expectations. Company-operated shop contribution margin reached approximately 31% in the second quarter, although higher coffee and occupancy costs are expected to pressure adjusted EBITDA margin in 2026. With at least 185 system shop openings expected this year, Dutch Bros’ approach contrasts with MCD’s more measured expansion pace, highlighting the importance of new-store productivity and disciplined development as restaurant operators balance growth with attractive returns.
MCD’s Price Performance, Valuation & EstimatesShares of McDonald’s have declined 18.3% over the past year compared with the industry’s fall of 7.5%.
MCD’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.22, above the industry’s average of 3.23.
MCD’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) implies a year-over-year rise of 5.5%. The EPS estimates for 2026 have declined in the past 30 days.
EPS Trend of MCD Stock
Image Source: Zacks Investment Research
MCD’s Zacks RankMCD stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A month has gone by since the last earnings report for McDonald's (MCD - Free Report) . Shares have lost about 4.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is McDonald's due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for McDonald's Corporation before we dive into how investors and analysts have reacted as of late.
McDonald's Q2 Earnings Beat on Franchised Margins, Sales MissMcDonald's reported second-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
McDonald's reported adjusted earnings per share (EPS) of $3.38, up 6% year over year, and beating the Zacks Consensus Estimate of $3.32 by 1.8%. Higher sales-driven franchised margins and other operating income supported the bottom line.
Revenues increased 4% year over year to $7.10 billion but missed the consensus mark of $7.14 billion by 0.5%. Global comparable sales rose with positive growth across all three operating segments.
MCD Posts Positive Comparable Sales Across SegmentsGlobal comparable sales increased 1.3% compared with 3.8% growth in the prior-year quarter. The United States recorded a 0.8% increase, driven by positive average check growth, including favorable product mix, partly offset by lower comparable guest counts.
International Operated Markets comparable sales rose 1.5%. Germany, Australia and the United Kingdom led the improvement, while France remained a drag. International Developmental Licensed Markets advanced 1.9%, supported by Japan and positive results across all geographic regions, partly offset by weakness in China.
McDonald’s Systemwide Sales Benefit From ScaleGlobal systemwide sales increased 5%, or 4% in constant currencies, to $37 billion. U.S. systemwide sales rose 2%, while International Operated Markets and International Developmental Licensed Markets increased 6% and 8%, respectively.
Loyalty remained an important demand driver. Across 70 loyalty markets, trailing 12-month systemwide sales to loyalty members increased more than 20% to $40 billion. The number of 90-day active loyalty users rose 13% to nearly 220 million at quarter-end.
MCD’s Q2 Revenue Growth Reflects Franchised StrengthRevenues from franchised restaurants increased 4% to $4.39 billion. U.S. franchised revenues rose 2%, International Operated Markets gained 5%, and International Developmental Licensed Markets and Corporate advanced 9%.
Sales from company-owned and operated restaurants increased 3% to $2.53 billion. U.S. sales declined 1%, while International Operated Markets rose 3%. Other revenues increased 6% to $182 million, reflecting contributions from technology-related fees and brand licensing arrangements.
McDonald’s Margins Rise Despite U.S. Cost PressureFranchised restaurant margins increased 4.3% to $3.71 billion and represented roughly 90% of total restaurant margin dollars. Growth reflected stronger sales across all segments and favorable currency translation in the international businesses.
Company-owned and operated restaurant margins rose 1.8% to $387 million. U.S. margins declined 6% to $91 million due primarily to ongoing inflationary cost pressures. International Operated Markets margins increased 3% to $285 million, as sales growth and currency benefits were partly offset by inflation.
MCD’s Operating Income Advances as SG&A ClimbsOperating income increased 3% to $3.34 billion, or 2% in constant currencies. Results included $52 million in pre-tax charges, primarily related to restructuring under the Accelerating the Organization initiative. Excluding current- and prior-year charges, operating income increased 4%.
Selling, general and administrative expenses increased 16.7% to $817 million. The rise primarily reflected higher employee costs, including incentive-based compensation, and expenses associated with the 2026 Worldwide Owner/Operator convention. Other operating income totaled $37 million compared with an expense of $29 million a year earlier, aided by higher gains on restaurant sales and excess properties.
MCD Maintains 2026 Expansion and Margin OutlookMcDonald’s expects net restaurant expansion to contribute about 2.5% to 2026 systemwide sales growth in constant currencies. The company continues to project a full-year operating margin in the mid-to-high 40% range and SG&A expenses of roughly 2.2% of systemwide sales.
Capital expenditures are expected between $3.7 billion and $3.9 billion. McDonald’s plans to open approximately 2,600 restaurants during 2026, generating about 2,100 net additions. Interest expense is projected to increase 4-6%, while the full-year effective tax rate is expected between 21% and 23%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
VGM ScoresAt this time, McDonald's has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, McDonald's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerMcDonald's is part of the Zacks Retail - Restaurants industry. Over the past month, Cheesecake Factory (CAKE - Free Report) , a stock from the same industry, has gained 3.1%. The company reported its results for the quarter ended June 2026 more than a month ago.
Cheesecake Factory reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $1.44 for the same period compares with $1.16 a year ago.
For the current quarter, Cheesecake Factory is expected to post earnings of $0.87 per share, indicating a change of +27.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Cheesecake Factory. Also, the stock has a VGM Score of A.
Key Takeaways McDonald's IOM posted 1.5% comparable sales growth, led by Germany, Australia and the U.K.IDL grew 1.9%, with Japan delivering its 10th straight quarter of positive guest-count growth.Management expects IOM and IDL comparable sales growth to accelerate sequentially in the third quarter. McDonald’s Corporation (MCD - Free Report) is seeing its international markets provide a relatively steady source of growth despite softer consumer demand across several regions. International Operated Markets (“IOM”) reported 1.5% comparable sales growth in the second quarter of 2026, with Germany, Australia and the United Kingdom leading the performance. After slightly negative comparable sales in April, McDonald’s saw IOM results improve in May and June, moving closer to normalized levels.
Value offerings and menu innovation remain important in maintaining demand. McDonald’s benefited from Every Day Affordable Price menus and meal deals across several IOM markets, while chicken-focused products helped Australia and Germany gain chicken share. In Germany, the company launched a specialty beverage platform in May, adding another avenue for sales growth.
International Developmental Licensed Markets (“IDL”) delivered 1.9% comparable sales growth. McDonald’s Japan business was a key contributor, recording its 10th consecutive quarter of positive comparable guest-count growth. The market’s loyalty platform, launched less than a year ago, has nearly 20 million 90-day active users, with higher visit frequency supporting demand.
The international performance is taking place against a softer consumer environment. QSR traffic across several large markets remained flat to negative, while McDonald’s operations in China tempered IDL growth as the macro and consumer environment remained challenging. France also fell short of McDonald’s expectations, although renewed meal deals and value offerings are being used to improve consumer response.
Management expects comparable sales growth in both IOM and IDL to accelerate sequentially in the third quarter. The outlook provides McDonald’s with a potential source of additional growth, even as consumer conditions remain uneven across international markets.
McDonald’s Competitive LandscapeAs international markets remain an important part of growth strategies, Starbucks Corporation (SBUX - Free Report) and The Wendy’s Company (WEN - Free Report) provide useful comparisons for McDonald’s.
Starbucks delivered a stronger international performance in the third-quarter fiscal 2026. International company-operated comparable sales increased 5.7%, supported by continued strength in Japan and the United Kingdom. The broader international business also recorded its sixth consecutive quarter of positive system-wide comparable sales across 90 markets. Starbucks is placing greater emphasis on international expansion, with new coffeehouse prototypes developed and tested globally to support faster unit growth. Management expects international markets to remain a meaningful contributor to unit growth through fiscal 2027.
Wendy’s international business presents a more uneven picture. International systemwide sales increased 3.4% in the second-quarter fiscal 2026, supported by new restaurant development. However, international same-restaurant sales declined 2.3%, mainly due to a challenging consumer and competitive environment in Canada. Excluding Canada, international sales increased 8.6%, with positive same-restaurant sales. Wendy’s also opened 27 international restaurants during the quarter, indicating that new unit development remains an important source of international growth.
MCD’s Price Performance, Valuation & EstimatesMcDonald’s shares have lost 21.3% in the past six months, underperforming the Zacks Retail - Restaurants industry, the broader Retail and Wholesale sector and the S&P 500 index.
Price Performance
Image Source: Zacks Investment Research
On a forward 12-month basis, MCD trades at a P/E of 19.45, down from the industry’s 22.64.
MCD P/E (F12M)
Image Source: Zacks Investment Research
MCD’s earnings estimates for 2026 have moved up over the past 30 days, while estimates for 2027 have been revised downward. Despite these mixed revisions, the latest estimates project year-over-year earnings growth of 5.5% in 2026 and 7.9% in 2027, pointing to continued momentum over the next two years.
Image Source: Zacks Investment Research
MCD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald’s v USA hlásí slabé tržby ze srovnatelných prodejen: srovnatelné tržby ve 2. čtvrtletí vzrostly jen o 0,8 % a v červenci byly mírně záporné. Akcie MCD za posledních šest měsíců klesly o 18,9 %.
Key Takeaways McDonald's U.S. comparable sales rose just 0.8% as value and marketing execution weighed on traffic.McDonald's is boosting digital offers, simplifying operations and expanding beverages to revive U.S. traffic.MCD trades below the industry P/E average, while international growth and its strategy support recovery. McDonald’s Corporation’s (MCD - Free Report) shares have declined 18.9% in the past six months, underperforming the industry’s 10.1% decline and the S&P 500’s 11.7% gain. The decline reflects concerns about weak U.S. traffic, inconsistent execution of value offerings and marketing missteps. The company acknowledged that U.S. comparable sales slowed sharply in the second quarter, rising just 0.8%, below its expectations.
The pressure continued into the early part of the third quarter. Management said U.S. comparable sales were slightly negative in July, indicating that the company’s corrective measures will take time to produce results. Against this backdrop, investors may wonder whether the stock’s decline has created an attractive entry point or whether more weakness could lie ahead.
On the other hand, MCD has also underperformed compared with industry peers such as Starbucks Corporation (SBUX - Free Report) and Yum! Brands, Inc. (YUM - Free Report) , as shown in the chart below.
Price Performance
Image Source: Zacks Investment Research
U.S. Execution Remains a Key ConcernMcDonald’s biggest near-term challenge is getting its U.S. business back on track. Management said the company’s value proposition has improved considerably, with base menu prices now below those of nearby competitors and the $5 Meal Deal and Extra Value Meals performing well. However, execution of the new Every Day Affordable Price menu was inconsistent.
Only about 60% to 65% of the U.S. system was executing the recommended pricing architecture for the under-$3 menu. The company also reduced the number of digital offers and removed its Buy One, Add One for $1 promotion, which hurt visits from loyal customers. Management estimated that these value-related decisions accounted for roughly two-thirds of the U.S. customer traffic shortfall compared with expectations in the quarter.
Restaurant operations also suffered because employees had to manage too many simultaneous product launches, promotions and marketing campaigns. This increased complexity, hurt service times and weighed on customer satisfaction. McDonald’s plans to simplify restaurant operations and reduce noncustomer-facing activities to allow employees to focus more on service.
McDonald’s Has Several Levers for RecoveryDespite the U.S. weakness, the latest results were not uniformly negative. Global comparable sales increased 1.3% in the second quarter, while systemwide sales rose 4% on a constant-currency basis. International markets continued to perform better, with comparable sales increasing 1.5% in International Operated Markets and 1.9% in International Developmental Licensed Markets.
The company is already taking steps to revive U.S. traffic. It plans to increase national digital flash offers, personalize promotions for frequent customers and redirect marketing spending toward proven-value offerings. Management also expects restaurant execution to improve relatively quickly because many of the operational changes are within its control. Marketing improvements are expected to take longer, with management targeting stronger execution in 2027.
Another encouraging area is beverages. McDonald’s new beverage platform is performing ahead of initial expectations in the United States, Canada and Germany. Management said more than half of beverage traffic is occurring after lunch, suggesting the platform is creating incremental occasions. Beverage orders are also benefiting from strong food attachment and higher average checks.
Long-Term Growth Strategy Offers UpsideMcDonald’s is also preparing to roll out its McDonald’s > NEXT strategy, focused on improving food taste and quality, strengthening hospitality and simplifying restaurant operations. The company expects productivity opportunities to help fund the investments associated with the strategy. More details are expected at its Investor Day in September.
The company continues to expand the restaurant base, although it pushed the target of reaching 50,000 restaurants globally to 2028 from 2027 because of inflationary development costs and a pressured consumer environment. It remains on track to open about 2,600 gross restaurants in 2026.
Financially, McDonald’s remains resilient. Second-quarter adjusted EPS was $3.38, representing a 5% increase year over year on a constant-currency basis. The company generated more than $4 billion in restaurant margins during the quarter, while its year-to-date adjusted operating margin stood at 46.9%.
McDonald's Growth ProjectionAnalysts have slightly raised their 2026 earnings expectations for McDonald’s over the past 30 days, with the Zacks Consensus Estimate increasing 2 cents to $12.88 per share. In contrast, the 2027 estimate has been lowered 10 cents to $13.93 per share. Despite these revisions, the consensus estimates point to earnings growth, with 2026 and 2027 EPS expected to increase 5.7% and 8.1% year over year, respectively.
Image Source: Zacks Investment Research
Revenue growth is also expected to remain steady. The Zacks Consensus Estimate projects revenues of $28.18 billion for 2026 and $29.61 billion for 2027, representing year-over-year growth of 4.8% and 5.1%, respectively.
MCD Stock Trades at a DiscountMcDonald’s currently trades at a discount to its industry based on the forward 12-month price-to-earnings (P/E) ratio. The stock’s multiple stands at 19.71X, below the industry average of 21.65X. By comparison, Starbucks and Yum! Brands trade at higher forward P/E multiples of 34.61X and 21.14X, respectively.
P/E (F12M)
Image Source: Zacks Investment Research
Wrapping UpOverall, McDonald’s remains a fundamentally strong business, but its near-term outlook is clouded by weak U.S. traffic, execution issues, softer marketing performance and a challenging consumer environment. Existing investors may prefer to hold as management is actively addressing these issues, while the company’s strong brand, resilient margins, international performance, beverage growth and long-term strategy provide a solid foundation for recovery.
However, the recent weakness in U.S. comparable sales and continued pressure early in the current quarter suggest that the turnaround is still in its early stages. Therefore, new investors may want to wait for clearer signs of sustained improvement in U.S. traffic and execution before initiating a fresh position, even though the stock’s relatively attractive valuation could limit downside once the business begins to regain momentum.
MCD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald’s ve 2. čtvrtletí překonal odhad upraveného zisku na akcii 3,38 USD, ale tržby ve výši 7,10 miliardy USD zaostaly. Tahounem byly franšízové marže, zatímco slabá návštěvnost v USA dál tlačí na výsledky.
Key Takeaways McDonald's Q2 earnings beat estimates as franchised margins rose, despite a revenue miss.U.S. traffic remained weak, with value execution issues driving most of the traffic shortfall.International growth and new restaurants support MCD as U.S. initiatives take time. McDonald's Corporation (MCD - Free Report) delivered a mixed second-quarter 2026 report. Adjusted earnings beat expectations, but revenues fell short as U.S. traffic remained soft even while international comparable sales stayed positive.
The investor question now centers on whether franchised margin growth, global expansion and improving international trends can offset weaker U.S. guest counts and pressure on company-operated profitability.
MCD Earnings Beat Relies on Franchised StrengthAdjusted earnings were $3.38 per share, up 6% year over year and 1.8% above the Zacks Consensus Estimate of $3.32. Revenues rose 4% to $7.10 billion but missed the consensus mark of $7.14 billion by 0.5%.
Franchised restaurant margins increased 4.3% to $3.71 billion and represented roughly 90% of total restaurant margin dollars. Company-operated restaurant margins rose 1.8% overall, but U.S. margins fell 6% to $91 million, reflecting continued inflationary cost pressure.
McDonald’s U.S. Traffic Remains the Main Pressure PointU.S. comparable sales increased 0.8%, supported by positive average check growth and favorable product mix, but lower guest counts limited the result. Management estimated that value execution issues accounted for about two-thirds of the customer traffic shortfall versus expectations.
The weakness carried into the third quarter, with U.S. comparable sales slightly negative in July. Chipotle Mexican Grill, Inc. (CMG - Free Report) reported second-quarter comparable restaurant sales growth of 2.2%, including a 1.0% increase in transactions. Restaurant Brands International Inc. (QSR - Free Report) posted 8.5% comparable sales growth at Burger King U.S., adding competitive context to McDonald’s traffic challenge.
MCD International Sales Provide a Growth CushionInternational Operated Markets comparable sales rose 1.5%, led by Germany, Australia and the United Kingdom. International Developmental Licensed Markets increased 1.9%, with Japan leading growth while China remained a drag.
Management expects comparable sales growth in both international segments to accelerate sequentially in the third quarter and on a two-year stacked basis. That outlook gives MCD a potential offset while U.S. traffic initiatives take time to gain traction.
McDonald’s Expansion Plan Keeps 2026 Growth IntactMcDonald’s still expects to open about 2,600 restaurants in 2026, producing roughly 2,100 net additions. Net restaurant expansion is projected to contribute about 2.5% to systemwide sales growth in constant currencies, even as the 50,000-restaurant target moves to 2028.
The company continues to expect a full-year operating margin in the mid-to-high 40% range. Capital expenditures are projected at $3.7-$3.9 billion, while interest expense is expected to increase 4-6%. The outlook therefore pairs continued restaurant investment with higher financing expense.
MCD Signals Reflect a Mixed Post-Earnings SetupThe quarter leaves investors with a clear trade-off. Franchised economics and international growth remain supportive, but U.S. traffic, company-operated margins and execution are still key variables to watch.
MCD currently carries a Zacks Rank #3 (Hold), a neutral short-term signal. The VGM Score of D and Value Score of D are less supportive, while the Growth Score of C is middling. The Momentum Score of B is the strongest Style Score signal, but the overall mix does not point to a uniformly favorable setup. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald’s ve svém posledním čtvrtletí ztratil mezi nízkopříjmovými zákazníky 2,4 % meziročně, což znamená asi 310 milionů USD ztracených tržeb. Burger King ve stejném období naopak vzrostl o 0,3 %.
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Low-income diners are spending less at McDonald's, Numerator found. Mario Tama/Getty Images McDonald's is losing ground to rivals among low-income fast-food diners, according to recent data.
Spending by low-income guests at the Golden Arches declined 2.4% year-over-year during the company's latest quarter, said consumer analytics company Numerator. The firm defines "low-income guests" as those from households making $40,000 or less a year.
The drop is McDonald's first quarterly decline with low-income guests in the past year and amounts to roughly $310 million in lost sales, Numerator said on Tuesday.
Rival fast-food chain Burger King, meanwhile, notched a 0.3% gain over the same period.
The data is the latest sign that McDonald's is struggling to attract diners, especially in a K-shaped economy.
While the chain long won over price-conscious diners with deals like its buy-one-get-one discount on sandwiches such as the Big Mac, it has had issues rolling out its latest value menu, which focuses on items priced $3 or less, CEO Chris Kempczinski said on an earnings call earlier this month.
"Although we've restored our overall value and affordability leadership, our restaurant-level results show that execution was inconsistent across the system," Kempczinski said.
McDonald's comparable US sales growth slowed to 0.8% during its second quarter, the company said. Rivals from Burger King to casual dining chain Chili's have posted stronger results while offering their own value menus and deals, Business Insider has reported.
Some McDonald's customers have told Business Insider they're now eating more at other chains or cooking more at home, due to higher costs.
Despite the company's struggles, some McDonald's offers are still drawing in diners of all income levels, Numerator found.
The chain's fried apple pie, an old menu item it brought back for America's 250th birthday this summer, has been purchased by 11.7% of US households, Numerator said.
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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
Fast Food Restaurants Burger King More Income Inequality
McDonald's oznámil, že růst tržeb v porovnatelných prodejnách v USA zpomalil ve 2. čtvrtletí na 0,8 %, protože návštěvnost výrazně oslabila. Firma zároveň vyměnila šéfa amerického byznysu Joea Erlingera.
On Aug. 4, McDonald's (MCD +1.16%) reported that U.S. same-store sales growth slowed to just 0.8% as "business slowed significantly" in the second quarter. CEO Chris Kempczinski pinned the shortfall on the company's own execution, and U.S. chief Joe Erlinger was replaced the same day in what the company called a "planned transition."
For a brand built on consistency, the results since last year have been anything but. That's when traffic patterns within the restaurant industry began to change as diners became more value-conscious.
At roughly 20.5 times forward earnings, the stock trades below its five-year average, pricing in modest earnings growth from here. So, is this an opportunity now for investors?
Image source: The Motley Fool.
The value prop didn't register McDonald's spent years raising prices to offset inflation. By last fall, Kempczinski acknowledged that lower-income diners had been pulling back for a couple of years. The company responded by relaunching Extra Value Meals, which drove a recovery, with U.S. same-store sales growing 3.9% in the first quarter of 2026. In April, management expanded the value platform with a new under-$3 menu and a $4 breakfast meal deal.
But the rollout gave operators too much leeway, leading a third of franchisees to price items higher than originally intended. To fund the new menu, management also pulled back on digital offers and removed the Buy One, Add One for $1 deal that loyal customers relied on. Kempczinski called the combination "a bad trade."
Traffic fell in the second quarter, even as comps rose 0.8% on higher average checks. Management said U.S. comps were "slightly negative" in July, and the timeline for a fix could run beyond the third quarter. The company also pushed its 50,000-restaurant target back a year, to 2028, citing the consumer backdrop and higher development costs.
The landlord has staying power McDonald's is a burger chain that doubles as one of the world's largest landlords. The company collects more than $10 billion in annual rent from its franchisees. It owns the buildings of roughly 80% of its 45,000-plus restaurants and the land under about 56% of them.
This real estate portfolio, in which rent tops royalties by billions of dollars a year, provides the stability that has funded 49 consecutive years of dividend increases. But the same model that delivers the rent can slow things down when the value message needs to move in lock-step.
The same week, Restaurant Brands International reported that U.S. same-store sales at Burger King jumped 8.5%, its second straight quarter of accelerating growth. In Q2, Burger King beat the U.S. burger industry by more than nine points. Four years into a rebuild of its restaurants and operations, Burger King is winning back traffic with a better Whopper.
Today's Change
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For McDonald's, it'll take time to get the value message aligned, but the company's rent stream amply covers the 2.7% dividend yield. Investors should watch for guest counts in the U.S. to turn positive and for details on its strategy at the company's Investor Day on Sept. 23.
At roughly 20.5 times forward earnings, the stock trades below its five-year average, offering a reasonable price for patient investors.
Associated Banc Corp lifted its position in McDonald’s Corporation (NYSE:MCD – Free Report) by 5.2% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 101,071 shares of the fast-food giant’s stock after buying an additional 5,022 shares during the quarter. Associated Banc Corp’s holdings in McDonald’s were worth $27,321,000 at the end of the most recent reporting period.
Several other hedge funds have also recently bought and sold shares of the company. Hamilton Point Investment Advisors LLC grew its position in McDonald’s by 1.8% in the 4th quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock valued at $535,000 after acquiring an additional 31 shares in the last quarter. Encompass More Asset Management increased its stake in McDonald’s by 1.5% during the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock worth $648,000 after buying an additional 32 shares during the period. Richmond Investment Services LLC lifted its holdings in McDonald’s by 1.4% during the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock worth $696,000 after buying an additional 32 shares in the last quarter. Papamarkou Wellner Asset Management inc. lifted its holdings in McDonald’s by 0.4% during the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant’s stock worth $2,692,000 after buying an additional 32 shares in the last quarter. Finally, Physician Wealth Advisors Inc. boosted its position in McDonald’s by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock valued at $642,000 after buying an additional 33 shares during the period. Institutional investors and hedge funds own 70.29% of the company’s stock.
Analyst Upgrades and Downgrades Several equities analysts have commented on MCD shares. Cfra upgraded shares of McDonald’s to a “buy” rating in a research note on Friday, May 8th. Royal Bank Of Canada reduced their price objective on McDonald’s from $305.00 to $295.00 and set a “sector perform” rating on the stock in a research note on Wednesday, August 5th. Piper Sandler set a $286.00 target price on McDonald’s in a report on Tuesday, August 4th. JPMorgan Chase & Co. lowered their target price on McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a research note on Monday, May 11th. Finally, Evercore set a $320.00 price target on McDonald’s in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat, McDonald’s currently has a consensus rating of “Moderate Buy” and an average target price of $325.44.
View Our Latest Analysis on MCD Insider Transactions at McDonald’s In other news, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction dated 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 sale, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 8,348 shares of company stock valued at $2,355,634 over the last ninety days. 0.26% of the stock is owned by company insiders.
McDonald’s Trading Down 2.7% Shares of NYSE:MCD opened at $265.43 on Tuesday. McDonald’s Corporation has a 52 week low of $260.96 and a 52 week high of $341.75. The company’s 50 day moving average is $273.56 and its two-hundred day moving average is $294.81. The company has a market cap of $187.83 billion, a PE ratio of 21.56, a P/E/G ratio of 3.05 and a beta of 0.41.
McDonald’s (NYSE:MCD – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the previous year, the company earned $3.19 EPS. As a group, equities research analysts expect that McDonald’s Corporation will post 12.88 EPS for the current year.
McDonald’s Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s payout ratio is 60.44%.
Key McDonald’s News Here are the key news stories impacting McDonald’s this week:
Positive Sentiment: McDonald’s is taking direct aim at Starbucks with a menu strategy focused on afternoon traffic. Expanded beverage and snack offerings could help the company capture additional dayparts and improve sales momentum. McDonald’s Takes Direct Aim at Starbucks Positive Sentiment: New limited-time fall drinks and other menu items, along with the Hello Kitty and Godzilla Happy Meal promotion, could support customer visits and boost seasonal sales. McDonald’s Has 4 New Limited-Time Menu Items Positive Sentiment: An app that helps restaurants fill open shifts has reportedly reduced the cost of missed shifts at one McDonald’s location. If scalable, better staffing could improve service consistency, labor efficiency, and restaurant-level profitability. Missed shifts were costly to this McDonald’s Positive Sentiment: A bullish analyst cited a consensus price target substantially above the current trading level, arguing that MCD could offer significant upside after its recent decline. This is supportive sentiment, though targets remain estimates rather than catalysts. McDonald’s Keeps Cratering Neutral Sentiment: Xbox-related in-game rewards and other international or promotional menu stories increase brand engagement but are unlikely to materially change near-term earnings expectations. Xbox 25th Anniversary McDonald’s Rewards Neutral Sentiment: One valuation review described MCD as roughly fairly valued on a discounted-cash-flow basis, while market multiples suggested modest undervaluation. The assessment offers some downside support but acknowledges weaker recent U.S. sales growth. McDonald’s Stock Looks Fairly Valued Negative Sentiment: Commentary on McDonald’s latest earnings characterized the results and execution as underwhelming, reinforcing concerns about soft same-store sales and the effectiveness of recent initiatives. Jim Cramer Breaks Down McDonald’s Earnings Negative Sentiment: Former Taco Bell executive Greg Creed criticized McDonald’s Red Bull beverage strategy, raising questions about product-market fit and whether the new drinks will meaningfully improve afternoon demand. Taco Bell’s Former Boss Criticizes McDonald’s Red Bull Drink McDonald’s Profile (Free Report)
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.
Featured Articles Five stocks we like better than McDonald’s Commodities Are Booming, But These 3 ETFs Tell Different Stories 3 Active ETFs Making Big Moves in August This ETF Is Outperforming by Avoiding the S&P 500’s Biggest Problem Birkenstock Beats the Skeptics—But Not on EPS Want to see what other hedge funds are holding MCD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McDonald’s Corporation (NYSE:MCD – Free Report).
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McDonald's poprvé zařadil do nabídky energetické nápoje a uvedl Red Bull Dragonberry Energizer. Nápoj je z Red Bullu, s příchutí blue raspberry a kousky lyofilizovaného dračího ovoce.
huettenhoelscher/iStock Editorial via Getty Images
Listen below or on the go on Apple Podcasts and Spotify
McDonald's adds energy drinks for first time. (0:15) L3Harris CEO steps down over conduct. (1:01) Big Tech has $3T in off-balance-sheet commitments. (1:29)
This is an abridged transcript of the podcast:
Our top story so far, from Happy Meals to Hyper Meals.
McDonald's (MCD) officially added energy drinks to its menu for the first time today with the debut of its new Red Bull Dragonberry Energizer.
The energy drink is made with Red Bull, blue raspberry flavoring and freeze-dried dragonfruit pieces. Customers can also order a reduced-sugar option with Red Bull Zero or a regular 8.4-ounce Red Bull can.
A Citi survey showed that 60% of energy beverage consumption at restaurants and coffee shops is incremental. Meanwhile, 49% of respondents said an energy drink purchased at a restaurant would replace one purchased elsewhere.
And 74% of respondents are very or somewhat interested in purchasing energy drinks from a restaurant or coffee shop, including 44% who are very interested.
Morgan Stanley thinks the energy drink platform could be a "swing factor" for McDonald's investors to watch in the second half of the year.
Among active stocks, L3Harris Technologies (LHX) is lower after Chairman and CEO Christopher Kubasik stepped down over conduct that was "not consistent" with the company's values. But L3Harris stressed the departure was not related to its financials or operations.
Wells Fargo upgraded Okta (OKTA) to Overweight from Equal Weight, citing signs of improving demand and execution in its core business.
Analyst Richard Poland said the company's focus on large enterprises, including adding capacity and expanding partnerships, is "bearing fruit."
And nine big tech companies have around $3T in off-balance-sheet commitments, mostly tied to AI infrastructure, according to The Wall Street Journal.
The paper looked at expenses at Amazon (AMZN), Alphabet (GOOG, GOOGL), Meta (META), Oracle (ORCL), Nvidia (NVDA), Microsoft (MSFT), Broadcom (AVGO), SpaceX (SPCX) and Advanced Micro Devices (AMD) that aren't reflected on their balance sheets but instead appear in the footnotes of their most recent securities filings.
The items include obligations under outstanding leases, long-term borrowings and purchase commitments. And they're growing faster than traditional capex.
In other news of note, popular ice cream maker Rebel Creamery has filed for bankruptcy less than one month after losing a lawsuit against rival Van Leeuwen over trademark rights.
The privately owned company built its identity around low-carb, high-fat products with no added sugar.
Van Leeuwen sued Rebel in April 2021, alleging that Rebel’s packaging copied its distinctive pastel, monochromatic look and black-script branding.
And the first-ever electric car manufactured by Ferrari (RACE) was sold at Sotheby's for $40M -- a new vehicle auction record.
Ferrari filled its entire 2026 allocation of just under 500 Ferrari Luce cars in less than two months after its May launch, despite a base price around $640K and mixed public reactions to its design.
And in the Wall Street Research Corner, space is moving from the final frontier to an institutional asset class, as falling launch costs, private investment and public-market funding reshape the orbital economy.
In a report titled "The Second Space Age," Goldman Sachs said space is becoming “a new pillar of the industrial economy,” with its own supply chains, infrastructure nodes and points of concentration where economic power can accumulate.
The global space-based economy (NASA) (UFO) is forecast to reach $1.8T by 2035. More than $55B was invested into the space ecosystem in 2025, while the first quarter of 2026 posted a record $36B of investment.
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McDonald’s (NYSE:MCD | MCD Price Prediction) currently trades at $272.83, well below the Wall Street consensus price target of $316.06. That gap works out to roughly 15.85% implied upside.
The world’s largest quick-service restaurant operator runs a 46,028-unit global system through a highly franchised model that produces operating margins near 46.5% and strong free cash flow. The stock is a Dow blue chip that dividend investors treat as defensive, so a slide of this size gets Wall Street’s attention.
One outlier has gone further. Tigress Financial’s Ivan Feinseth carries a $390 target, the highest active call on the Street, implying nearly 43% upside from here.
A Sharp U.S. Execution Miss Broke the Uptrend The catalyst was a rough Q2 26 earnings report. Global comparable sales decelerated to 1.3% from 3.8% a year earlier, U.S. comparable guest counts turned negative, and comps in China and France went red. Revenue of $7.10 billion missed the $7.13 billion consensus, and while EPS of $3.38 beat by 1.77%, SG&A surged 17%.
CEO Chris Kempczinski owned the problem, telling investors, “We don’t have a strategy problem. We simply didn’t execute at the level we needed to in the second quarter.” He pinned roughly two-thirds of the U.S. traffic miss on a botched rollout of the 10 items for under $3 EDAP menu, saying “call it a third of the system that did not execute against what we were guiding around” on pricing.
Shares are off 14.54% from the February 2026 peak near $319 and sit below both the 50-day and 200-day moving averages.
Why Tigress Financial Still Sees $390 Feinseth raised his target to $390 from $385. His thesis leans on the “Accelerating the Arches” strategy: physical unit expansion paired with digital modernization, a capital-light franchise engine with gross margins near 57%, and 50 consecutive years of dividend increases underpinning the story.
The digital flywheel is the operative catalyst. Loyalty scale hit roughly 220 million 90-day active users, driving over $40 billion in trailing-twelve-month systemwide sales across 70 markets. That is the raw material for AI-driven personalization, drive-thru optimization, and higher-frequency repeat visits.
Fixes are in motion. Skye Anderson, promoted to President of McDonald’s USA, drove 30%+ comp growth across the West Zone in her prior role. The new beverage platform is running 50% above the average check in launch markets. On October 5th, management retrains 2 million+ restaurant crew on service standards.
The broader Street is more cautious. Ratings split 4 Strong Buy, 14 Buy, 15 Hold, 1 Sell, and recent updates have been reiterations rather than fresh upgrades. The 50,000-unit goal slipped from 2027 to 2028. Even the bulls need U.S. traffic to inflect.
Peers Held Up While McDonald’s Slid Starbucks (NASDAQ:SBUX) trades near $107.69 against a $112.23 average target, roughly 4.2% upside. The Back to Starbucks turnaround produced 7.9% comps last quarter.
Yum! Brands (NYSE:YUM) sits at $148.11 with a $173.38 target and about 17.1% upside. Taco Bell drove 7% Q2 comps and Pizza Hut is being divested.
Restaurant Brands International (NYSE:QSR) trades at $77.64 versus an $85.65 target, roughly 10.3% upside. Burger King’s Reclaim the Flame plan drove 8.5% U.S. comps.
The largest implied upside in the cluster sits with MCD, whether you take the 15.85% consensus or the 43% Tigress outlier. Peers are priced fairly. MCD is the dislocated name.
The Numbers Behind the Dislocation McDonald’s trades at $272.83 against a consensus target of $316.06 from 34 covering analysts, implying 15.85% upside. Tigress Financial’s $390 outlier implies roughly 43%. The stock is off 9.63% year to date and 9.55% over the trailing year, while the S&P 500 has gained 13.85% YTD.
Analyst ratings:
Strong Buy: 4 Buy: 14 Hold: 15 Sell: 1 MCD trades at a P/E of 23 with a 2.65% dividend yield and a free cash flow yield near 3.72%. Fundamentals are intact. Sentiment has done the moving.
My Take: Constructive, But Watch the U.S. Traffic Line The bull case holds if you believe Skye Anderson can restore U.S. execution within two or three quarters, the beverage platform scales as Germany suggests, and the October retraining tightens service enough to bring guest counts back. That is the path to the consensus target and, if traffic reaccelerates, toward Feinseth’s $390.
The bear case builds if you think the negative U.S. guest counts and stubborn China and France weakness are structural rather than execution-driven. Comps halving from 3.8% to 1.3% in one quarter is a red flag, and the slipped 50,000-unit target is a soft admission. If the QSR consumer is broken, loyalty scale alone will not rescue the multiple.
I lean cautiously constructive. Fundamentals justify the consensus target more than the current price, but Tigress’s $390 call requires clean U.S. execution snapback, and Q2 gave the market a real reason to doubt it.
Contact [email protected] for any questions or corrections.
Compagnie Lombard Odier SCmA ve 2. čtvrtletí snížila podíl v McDonald’s o 1,4 % a prodala 4 401 akcií. Fond nyní drží 320 756 akcií za 86,7 milionu USD.
Compagnie Lombard Odier SCmA lowered its position in McDonald’s Corporation (NYSE:MCD – Free Report) by 1.4% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 320,756 shares of the fast-food giant’s stock after selling 4,401 shares during the period. McDonald’s comprises about 0.9% of Compagnie Lombard Odier SCmA’s portfolio, making the stock its 25th largest position. Compagnie Lombard Odier SCmA’s holdings in McDonald’s were worth $86,704,000 at the end of the most recent reporting period.
Other large investors also recently made changes to their positions in the company. Ascentis Wealth Management LLC increased its position in McDonald’s by 4,008.8% in the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock worth $22,768,000 after buying an additional 82,180 shares during the last quarter. Borer Denton & Associates Inc. lifted its position in shares of McDonald’s by 16.9% during the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock valued at $3,746,000 after buying an additional 2,000 shares during the last quarter. Peterson Wealth Services lifted its position in shares of McDonald’s by 3,294.5% during the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock valued at $3,600,000 after buying an additional 11,432 shares during the last quarter. Harbour Investments Inc. grew its stake in shares of McDonald’s by 84.4% during the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant’s stock worth $10,853,000 after acquiring an additional 16,252 shares during the period. Finally, Capital International Sarl grew its stake in shares of McDonald’s by 10.4% during the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock worth $19,639,000 after acquiring an additional 6,079 shares during the period. 70.29% of the stock is owned by institutional investors.
McDonald’s News Summary Here are the key news stories impacting McDonald’s this week:
Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report McDonald’s Trading Down 0.1% MCD stock opened at $272.61 on Monday. The firm has a 50 day moving average of $273.81 and a 200-day moving average of $295.15. McDonald’s Corporation has a 12 month low of $260.96 and a 12 month high of $341.75. The firm has a market capitalization of $192.91 billion, a P/E ratio of 22.15, a price-to-earnings-growth ratio of 3.05 and a beta of 0.41.
McDonald’s (NYSE:MCD – Get Free Report) last posted its earnings results 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 business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same quarter in the prior year, the firm posted $3.19 EPS. McDonald’s’s revenue was up 3.7% on a year-over-year basis. Sell-side analysts predict that McDonald’s Corporation will post 12.88 EPS for the current year.
McDonald’s Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be given a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio (DPR) is 60.44%.
Analyst Upgrades and Downgrades A number of brokerages recently issued reports on MCD. JPMorgan Chase & Co. lowered their price objective on McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research note on Monday, May 11th. Erste Group Bank lowered shares of McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. UBS Group set a $305.00 target price on shares of McDonald’s in a report on Wednesday, August 5th. Royal Bank Of Canada dropped their target price on McDonald’s from $305.00 to $295.00 and set a “sector perform” rating on the stock in a research report on Wednesday, August 5th. Finally, Guggenheim cut their price target on McDonald’s from $320.00 to $290.00 and set a “neutral” rating for the company in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $325.44.
Check Out Our Latest Analysis on MCD
Insider Buying and Selling at McDonald’s In related news, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction dated 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 completion of the transaction, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,348 shares of company stock valued at $2,355,634 in the last three months. 0.26% of the stock is owned by corporate insiders.
About McDonald’s (Free Report)
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.
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Ascentis Wealth Management LLC boosted its position in shares of McDonald’s Corporation (NYSE:MCD – Free Report) by 4,008.8% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 84,230 shares of the fast-food giant’s stock after purchasing an additional 82,180 shares during the period. McDonald’s comprises 1.3% of Ascentis Wealth Management LLC’s holdings, making the stock its 13th biggest holding. Ascentis Wealth Management LLC’s holdings in McDonald’s were worth $22,768,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Your Advocates Ltd. LLP purchased a new position in McDonald’s during the 4th quarter worth $27,000. IFC & Insurance Marketing Inc. purchased a new stake in McDonald’s in the fourth quarter worth about $29,000. Abound Financial LLC bought a new position in McDonald’s during the 4th quarter worth about $30,000. DecisionPoint Financial LLC grew its holdings in McDonald’s by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock worth $31,000 after acquiring an additional 97 shares in the last quarter. Finally, Entrust Financial LLC purchased a new stake in McDonald’s during the fourth quarter worth $31,000. 70.29% of the stock is owned by hedge funds and other institutional investors.
Key Headlines Impacting McDonald’s Here are the key news stories impacting McDonald’s this week:
Positive Sentiment: McDonald’s is emphasizing lower-priced meals to win back cost-conscious customers, a potentially supportive strategy as consumers increasingly prioritize value. McDonald’s is betting on cheaper meals to win back customers Positive Sentiment: New growth initiatives include Red Bull energy drinks, additional beverages and limited-time menu items. These products could increase traffic and average spending while supporting a simpler restaurant operating model. McDonald’s bringing Red Bull drinks and new sodas to US customers Positive Sentiment: The Hello Kitty x Godzilla Happy Meal promotion may generate customer interest and family traffic when it launches, although its financial impact is likely limited. McDonald’s Announces Eight Hello Kitty x Godzilla Toys Neutral Sentiment: Recent earnings showed adjusted EPS of $3.38, above expectations, while revenue of $7.10 billion was slightly below consensus. Management acknowledged inconsistent value-menu execution and excessive operational complexity, making successful implementation of the turnaround strategy critical. Five Insightful Analyst Questions From McDonald’s Q2 Earnings Call Negative Sentiment: McDonald’s is reportedly losing ground to Burger King and other low-cost alternatives, including gas-station food, as customers seek cheaper meals. Slowing second-quarter sales growth raises concerns about U.S. traffic and market share. The burger wars are heating up as McDonald’s loses ground Negative Sentiment: Erste Group lowered its fiscal 2027 EPS forecast, adding to investor concerns about earnings growth. McDonald’s FY2027 EPS Forecast Lowered Negative Sentiment: Reports that McDonald’s maintained a 515-page customer dossier could create privacy and reputational risks, though the immediate financial effect is unclear. McDonald’s customer dossier report Insider Activity at McDonald’s In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction 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 of the company’s stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 8,348 shares of company stock valued at $2,355,634. Corporate insiders own 0.26% of the company’s stock.
Wall Street Analyst Weigh In MCD has been the topic of a number of analyst reports. Robert W. Baird cut their price target on McDonald’s from $305.00 to $285.00 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. Evercore set a $320.00 target price on McDonald’s in a research note on Thursday, July 23rd. Tigress Financial lifted their price objective on shares of McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a research report on Friday, July 17th. Piper Sandler set a $286.00 price objective on shares of McDonald’s in a research note on Tuesday, August 4th. Finally, BTIG Research reissued a “buy” rating and set a $350.00 target price on shares of McDonald’s in a research report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $325.44.
Check Out Our Latest Stock Report on McDonald’s
McDonald’s Trading Up 0.1% MCD opened at $272.61 on Friday. The firm has a 50 day moving average of $273.81 and a two-hundred day moving average of $295.28. The firm has a market capitalization of $192.91 billion, a PE ratio of 22.15, a P/E/G ratio of 3.05 and a beta of 0.41. McDonald’s Corporation has a 12-month low of $260.96 and a 12-month high of $341.75.
McDonald’s (NYSE:MCD – Get Free Report) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating 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 the consensus estimate of $7.13 billion. During the same period in the previous year, the firm posted $3.19 earnings per share. The firm’s quarterly revenue was up 3.7% on a year-over-year basis. As a group, analysts predict that McDonald’s Corporation will post 12.88 EPS for the current fiscal year.
McDonald’s Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s dividend payout ratio is presently 60.44%.
About McDonald’s (Free Report)
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.
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McDonald’s posunul cíl 50 000 restaurací globálně na rok 2028 a upřednostňuje návratnost a kvalitu před rychlým růstem. V USA vzrostly srovnatelné tržby ve 2. čtvrtletí jen o 0,8 %.
Key Takeaways McDonald's delayed its 50,000-store target to 2028 while prioritizing returns and quality over unit growth.U.S. comparable sales rose just 0.8% as value execution and marketing challenges weighed on traffic.McDonald's still plans roughly 2,600 gross restaurant openings in 2026, its fastest growth period yet. McDonald's Corporation (MCD - Free Report) is taking a slightly more measured approach to restaurant expansion, pushing its goal of reaching 50,000 locations globally to 2028 from the end of 2027. The shift may raise concerns that growth is losing momentum, but management characterized the move as a disciplined adjustment rather than a change in its long-term expansion strategy.
Management said cumulative inflation in development costs and a more pressured consumer environment prompted a review of the restaurant pipeline. The company is prioritizing attractive returns and quality of new locations over simply adding units. Importantly, McDonald’s still expects to open roughly 2,600 gross restaurants in 2026, which management described as the fastest period of restaurant growth in its history.
The more notable growth concern currently lies in the U.S. business. Second-quarter U.S. comparable sales increased just 0.8%, as inconsistent execution of value offerings, reduced digital promotions and an overly crowded marketing calendar weighed on traffic. U.S. comparable sales were also slightly negative in July, indicating that the recovery could take time.
Still, management remains confident in the growth opportunity. New beverages are generating encouraging incremental traffic and higher checks, while the upcoming McDonald’s > NEXT strategy is designed to improve food quality, hospitality and restaurant productivity.
QSR and YUM Maintain Aggressive Restaurant GrowthMcDonald’s is moderating its expansion pace, but competitors continue to pursue substantial unit growth. The owner of Burger King, Tim Hortons, Popeyes and Firehouse Subs, Restaurant Brands International (QSR - Free Report) targets 5% or more net restaurant growth by 2028. Restaurant Brands International’s strategy combines new-store development with investments in existing locations, particularly Burger King’s U.S. turnaround program.
Through KFC, Taco Bell, Pizza Hut and Habit Burger & Grill, Yum! Brands (YUM - Free Report) has an even larger global footprint, with more than 63,000 restaurants across 155 countries and territories. Yum! Brands’ franchise-heavy model continues to support international expansion and provides significant scope for adding units.
Against this backdrop, McDonald’s decision to move its 50,000-store milestone to 2028 reflects a more selective approach rather than an abandonment of growth. Management emphasized that inflation-driven development costs and softer consumer conditions require greater focus on returns. With about 2,600 gross openings still expected in 2026, MCD’s expansion engine remains active.
MCD’s Price Performance, Valuation & EstimatesMcDonald’s shares have lost 17.6% in the past six months, underperforming the Zacks Retail - Restaurants industry, the broader Retail and Wholesale sector and the S&P 500 index.
Price Performance
Image Source: Zacks Investment Research
In terms of its forward 12-month price-to-earnings ratio, MCD is trading at 20.23, down from the industry’s 21.65.
MCD P/E (F12M)
Image Source: Zacks Investment Research
MCD’s earnings estimates for 2026 and 2027 have trended downward in the past 30 days. The revised estimates for 2026 and 2027 imply year-over-year growth of 5.6% and 8.1%, respectively.
Image Source: Zacks Investment Research
MCD currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Společnost McDonald's za poslední čtvrtletí zvýšila tržby o 5 %, ale srovnatelné tržby vzrostly jen o 1,3 % a v USA o 0,8 %. Nové levné menu zatím nepřineslo výrazný impuls.
McDonald's (MCD -0.89%) is a leader in the fast-food industry, and it's an iconic brand all over the world. The challenge, however, is that when a business reaches a massive size, it becomes much harder for it to grow quickly. And the company's recent results highlight that, as they were fairly modest.
Can McDonald's still be a top stock to buy right now, or are its best days behind it?
Image source: Getty Images.
Comparable sales were light in the company's most recent quarter Last week, McDonald's reported its latest quarterly results for the period ending June 30. The numbers weren't great. While its total sales rose by 5% year over year, its comparable store sales growth rate was much more modest, coming in at just 1.3%. And in the U.S. market, it was just 0.8%.
Comparable store sales look at how much revenue the company is generating from existing locations versus the same locations in the prior-year period. Thus, it's reflective of the organic growth the business is generating, and it excludes the boost it gets from opening new stores.
What's concerning is that in April, the company expanded its value offerings, including the launch of a new under $3 menu, and that hasn't shown to be a huge catalyst, at least not in its early stages, anyway. At a time when consumers are looking to save on anything and everything, it's a move that investors may have expected to be a catalyst for the fast-food business. But that hasn't proven to be the case at all.
Today's Change
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Current Price
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McDonald's stock can still be a good buy, but it may not be ideal for growth investors McDonald's has a highly profitable and scalable business. But generating meaningful, organic growth may prove to be a challenge in a highly competitive fast-food industry. Rising prices in recent years don't make things any easier, either.
The stock can still be a solid option for income investors as it yields 2.7%, which is a far higher rate than the S&P 500 average of only 1.1%. But for growth investors, there are many other, better growth stocks to buy than McDonald's. Last year, its annual revenue totaled $26.9 billion, which rose by less than 4% from the previous year. It may still generate modest growth in the long run, but growth investors may be underwhelmed with its performance. In the past five years, the stock has risen by just 16%, while the S&P 500 has increased by 75% in value.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.
Burger King’s US sales are soaring as customers embrace its revamped Whopper – while long-reigning McDonald’s suffers flailing growth in its largest market.
In the most recent quarter, Burger King’s US same-store sales jumped 8.5%, owner Restaurant Brands International – which also owns Tim Horton and Popeyes – said Thursday.
Burger King’s US sales are soaring as customers embrace its revamped Whopper burger. IanDewarPhotography – stock.adobe.com McDonald’s, meanwhile, saw US same-store sales growth of just 0.8%, which executives called disappointing. The company on Tuesday announced it has hired a new president for its US division in an attempt to drive sales.
The fast-food giants’ rivalry has been heating up this year amid a battle between their biggest burgers, after they both unveiled their own version of calorie-bomb patties on the same day in February.
Burger King updated its iconic Whopper with a “premium” bun, “better-tasting mayo” and a box container instead of a paper wrapper while McDonald’s brought the Big Arch Burger to the US. It features two quarter-pound beef patties and three slices of melted cheese.
McDonald’s CEO Chris Kempczinski was ruthlessly mocked online for a video touting the burger, in which he took a weirdly timid bite.
On Thursday, RBI said Burger King’s turnaround effort — which included the updated Whopper, restaurant renovations and a new marketing campaign — helped draw in customers.
“Burger King’s performance is a great example of what’s possible when you invest in the fundamentals and execute well – an approach we’re applying across all of our brands,” Restaurant Brands CEO Josh Kobza said in a statement.
RBI said Burger King’s “standout performance” extended overseas, as its international restaurants enjoyed same-store sales growth of 5.4% in the last quarter.
Michael Gunther, SVP of research and market intelligence at Consumer Intelligence, said Burger King’s outperformance was broad – with accelerating growth in traffic, average check size and market share gains across all age and income groups.
Burger King’s updated Whopper (left) and the McDonald’s Big Arch Burger (right). Tamara Beckwith/NY Post “These trends are notable amid a challenging environment for restaurants as consumers – especially lower-income diners that make up an outsized share of Burger King’s base – face macroeconomic pressures and cost-of-living concerns,” Gunther said in a note Thursday.
Executives said there is more room for improvement at Burger King, since not all of its US restaurants have been remodeled yet – and RBI’s other brands struggled in the same period.
McDonald’s on Tuesday reported mixed quarterly results, including adjusting earnings per share of $3.38 that beat expectations but revenue of $7.10 billion that missed estimates of $7.13 billion.
“We don’t have a strategy problem,” Kempczinski said during the company’s earnings call. “We simply didn’t execute at the level we needed to in the second quarter.”
Skye Anderson, a 26-year McDonald’s veteran, will be taking over the role of president of the chain’s US business – succeeding Joe Erlinger, who held the position for over six years.
McDonald’s on Tuesday reported mixed quarterly results. AFP via Getty Images While average check size rose at McDonald’s US joints, traffic fell, the company said.
Executives blamed that poor performance on a disjointed rollout of its value offerings, including an “under $3 menu” that aimed to win over inflation-battered customers.
McDonald’s US restaurants are mostly run by franchisees, who are allowed to set their own prices – meaning only about 60% to 65% of the company’s system has adopted the special discount menu, according to Kempczinski.
After facing fervent backlash over rising prices at the drive-thru, McDonald’s also tried to launch too many value offerings at once, which ultimately slowed down restaurant operations – adding to wait times and resulting in frustrated customers, the company said.
“While our playbook is working around the world, we see an opportunity to raise the bar in the US and accelerate performance in our largest market,” Kempczinski said.
McDonald’s said it expects its US same-store sales to return to strong growth by 2027 if it revamps its operations and marketing.
The company saw much stronger results outside of the US, with same-store sales growth of 1.5% in international operated markets and 1.9% in international developmental licensed markets.
McDonald's přehodnocuje svou cenově výhodnou nabídku po slabém druhém čtvrtletí, kdy omezil digitální slevy a nedařilo se mu zavést nové menu pod 3 USD. To zpomalilo růst tržeb v USA.
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McDonald's is facing challenges with its value menu. Robert Nickelsberg/Getty Images McDonald's is facing big problems with some of the cheapest items on its menu.
The fast-food giant is rethinking its approach to value-priced options after a rough few months, executives said on Tuesday.
CEO Chris Kempczinski pointed to multiple problems on the company's second-quarter earnings call. The chain cut back on digital discounts, alienating some of its most loyal patrons. It also struggled to roll out its new under-$3 value menu to restaurants. And McDonald's had too many promotions too close together, from special World Cup meals to new refresher beverages.
McDonald's quarterly US sales growth slowed down as a result.
"We don't have a strategy problem," Kempczinski said. "We simply didn't execute at the level we needed to in the second quarter."
McDonald's has plenty of competition, with rivals eager to offer diners deals on a cheap burger.
We want to know what you think. Whether you're a weekly McDonald's customer or have stopped going altogether, we're interested in hearing your thoughts on the chain's value and prices.
Do you have a story idea about McDonald's? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.
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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
McDonald's Corporation (MCD) Q2 2026 Earnings Call August 4, 2026 8:30 AM EDT
Company Participants
Dexter Congbalay - Vice President of Investor Relations
Christopher Kempczinski - Chairman President, & CEO
Ian Borden - Executive VP & Global CFO
Conference Call Participants
David Palmer - Evercore ISI Institutional Equities, Research Division
Dennis Geiger - UBS Investment Bank, Research Division
Brian Harbour - Morgan Stanley, Research Division
John Ivankoe - JPMorgan Chase & Co, Research Division
Sara Senatore - BofA Securities, Research Division
David Tarantino - Robert W. Baird & Co. Incorporated, Research Division
Jon Tower - Citigroup Inc., Research Division
Lauren Silberman - Deutsche Bank AG, Research Division
Presentation
Operator
Hello, and welcome to McDonald's Second Quarter 2026 Investor Conference Call. At the request of McDonald's Corporation, this conference is being recorded. [Operator Instructions]
I would now like to turn the conference over to Mr. Dexter Congbalay, Vice President of Investor Relations for McDonald's Corporation. Mr. Congbalay, you may begin.
Dexter Congbalay
Vice President of Investor Relations
Good morning, everyone, and thank you for joining us. With me on the call today are Chairman and Chief Executive Officer, Chris Kempczinski; and Chief Financial Officer, Ian Borden.
As a reminder, the forward-looking statements in our earnings release and 8-K filing also apply to our comments on the call today. Both of those documents are available on our website as are reconciliations of any non-GAAP financial measures mentioned on today's call, along with their corresponding GAAP measures. Following prepared remarks this morning, we will take your questions. Please limit yourself to one question and then reenter the queue for any additional questions. Today's conference call is being webcast and is also being recorded for replay via our website.
And now I'll turn it over to Chris.
Christopher Kempczinski
Chairman President, & CEO
Good morning, everyone, and thank you for joining us. Before Ian
McDonald's (MCD - Free Report) came out with quarterly earnings of $3.38 per share, beating the Zacks Consensus Estimate of $3.32 per share. This compares to earnings of $3.19 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.81%. A quarter ago, it was expected that this world's biggest hamburger chain would post earnings of $2.74 per share when it actually produced earnings of $2.83, delivering a surprise of +3.28%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
McDonald's, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $7.1 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.51%. This compares to year-ago revenues of $6.84 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
McDonald's shares have lost about 13.2% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for McDonald's?While McDonald's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for McDonald's was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.41 on $7.34 billion in revenues for the coming quarter and $12.85 on $28.34 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Bloomin' Brands (BLMN - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This owner of Outback Steakhouse and other casual dining spots is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -15.2%. The consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level.
Bloomin' Brands' revenues are expected to be $999.08 million, down 0.3% from the year-ago quarter.
McDonald's jmenoval zkušenou manažerku Skye Andersonovou prezidentkou pro USA, protože v největším trhu zpomaluje růst. Zároveň oznámil, že výsledky za 2. čtvrtletí překonaly odhady, ale tržby za nimi zaostaly.
McDonald's announced that company veteran Skye Anderson will lead its U.S. business, effective Tuesday, as the company tries to win over cost-conscious diners in its largest market.
"I look forward to working closely with her and the U.S. leadership team to help accelerate performance and unlock the significant opportunity in front of us, and I have tremendous confidence that she is the ideal leader for this next phase of our U.S. business," McDonald's CEO Chris Kempczinski said in a statement.
Earlier this year, Anderson was named chief operating officer for McDonald's USA. Prior to that, she led the company's Global Business Services segment, which was created with the aim of making its corporate operations more efficient and using the restaurant giant's scale. She also spent four years in charge of McDonald's U.S. West Zone; in that role, she increased average restaurant unit cash flow by $100,000 and drove same-store sales growth of more than 30%, according to the company.
Anderson has been with the company for 26 years.
"I've had the opportunity to work closely with Skye throughout much of her career, and I've repeatedly turned to her to lead some of our most important businesses and transformation efforts because she's a proven change agent who can act with urgency to mobilize our System," Kempczinski said.
Anderson succeeds Joe Erlinger, who has held the role for more than six years. Erlinger will stay on as an advisor through early 2027.
McDonald's also reported its second-quarter results on Tuesday. The company's earnings topped Wall Street's estimates, but its revenue fell short of analysts' expectations. U.S. same-store sales grew just 0.8%, and traffic to its domestic restaurants fell during the quarter.
Broadly, McDonald's has outperformed U.S. rivals by leaning into value meals and buzzy promotions to attract diners. But a successful marketing move — like its tie-in meal with the "Minecraft" movie during the year-ago period — means that the burger chain has to keep surpassing its own wins to grow same-store sales.
In early June, the company unveiled a new growth strategy as it aims to become diners' first option. The plan includes menu innovation that elevates taste and quality, listening to how consumers interact with brands and a new restaurant design.
McDonald's ve druhém čtvrtletí zvýšil čistý zisk o pět procent a pokračoval v růstu celkových tržeb, výsledky však zastínilo zpomalení na klíčovém americkém trhu. Tržby restaurací otevřených déle než rok v USA rostly podstatně pomaleji než před rokem a zaostaly za očekáváním analytiků. Slabší výkon podle firmy odráží opatrnější chování spotřebitelů, kteří kvůli ekonomické nejistotě a vyšším nákladům omezují výdaje za stravování mimo domov.
Americký řetězec restaurací rychlého občerstvení McDonald's ve druhém čtvrtletí zvýšil čistý zisk meziročně o pět procent na 2,36 miliardy dolarů (téměř 50 miliard Kč). Oznámila to dnes firma. Představila rovněž změnu ve vedení aktivit ve Spojených státech, kde zaznamenala zpomalení růstu tržeb.
Konsolidované tržby společnosti ve druhém čtvrtletí vzrostly o zhruba čtyři procenta na 7,1 miliardy dolarů z 6,8 miliardy před rokem. Tržby restaurací v USA otevřených nejméně rok se zvýšily pouze o 0,8 procenta. Jejich růst tak výrazně zpomalil z 2,5 procenta před rokem a zaostal za očekáváním analytiků.
Firma dnes oznámila, že novou šéfkou aktivit v USA se stane Skye Andersonová, která tak nahradí Joea Erlingera. Spojené státy jsou největším trhem společnosti. Američtí zákazníci se však v poslední době kvůli obavám ohledně vývoje ekonomiky snaží omezovat výdaje na stravování v restauracích, napsala agentura Reuters.
Společnost McDonald's již v květnu varovala, že vyšší ceny benzinu na čerpacích stanicích a obavy spotřebitelů související s konfliktem mezi USA a Íránem by mohly mít negativní dopad na její tržby.
Řetězec McDonald's působí rovněž v České republice, kde provozuje více než 140 restauraci. Předloni do restaurací McDonalds's v Česku zavítalo 53,5 milionu zákazníků.
Tagy: McDonald´s, výsledky, akcie, potravinářství
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As of this writing, McDonald's (MCD +0.82%) stock sits at $270.64. The 52-week high is $341.75, so shares have given up about 21% -- and they now sit just 4% from the bottom of their yearly range. That's an unusual place to find one of the steadiest large businesses in the world, and to me, it's worth a look. At the current price, the stock offers a dividend yield of about 2.7%, and shares cost about 22 times earnings.
A decline like that usually means something went wrong. So, did the business change, or did just the price? The company's last four quarterly reports point one way.
Image source: Getty Images.
The business the stock left behind McDonald's has now posted positive global comparable sales (growth at restaurants open more than a year, the industry's cleanest measure of underlying demand) in each of its last four reported quarters. The streak runs 3.8% in the second quarter of 2025, 3.6% in the third, 5.7% in the fourth, and 3.8% in the first quarter of 2026. The fourth quarter also came with positive guest counts globally, meaning more transactions, not just higher checks.
The U.S. business, which investors have fretted over as lower-income consumers pull back, grew comparable sales 6.8% in the fourth quarter and 3.9% in the first quarter of 2026. The international side kept pace. International operated markets grew comparable sales 3.9% in the first quarter, and the developmental licensed markets, where local partners run the restaurants, grew 3.4%.
Profits followed. First-quarter revenue rose 9% year over year to about $6.5 billion, and operating income climbed 12% to nearly $3 billion -- a 45% operating margin. Earnings per share came in at $2.78, up 7%.
The full year of 2025 told the same story. Revenue rose 4% to $26.9 billion, operating income rose 6%, and earnings per share climbed 5% to $11.95.
That operating margin is the heart of the investment case. Most of McDonald's revenue doesn't come from selling burgers. Of that $26.9 billion in revenue, $16.5 billion came from its franchised restaurants -- rent and royalties collected from operators who put up their own capital and carry the restaurant-level costs.
That structure is why operating margins can sit in the mid-40% range and why profits could hold up through a consumer soft patch.
The loyalty program adds another layer of durability. Members generated over $9 billion in systemwide sales in the first quarter alone, across 70 markets, and loyalty sales for the trailing 12 months topped $38 billion.
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What the price pays for now At $270.64, McDonald's costs about 22 times earnings, based on earnings per share of $12.13 over the past 12 months. When the stock traded at its high of $341.75, those same earnings would have cost about 28 times. And trailing earnings were lower back then, so investors were actually paying more than that. Earnings per share went up over the past year. Only the price went down.
Put another way, the entire 21% decline came from investors paying less per dollar of McDonald's earnings, not from McDonald's earning less. The company's market value has dropped by about $50 billion, to about $191 billion, while the business behind it kept growing.
The dividend helps, too. At $7.44 per share annually, the payout yields about 2.7% at the current price, the direct result of a falling price meeting a steady dividend.
Of course, the picture isn't spotless. Comparable sales growth decelerated from the fourth quarter's 5.7% to 3.8% in the first quarter, and more than half of the first quarter's reported revenue growth came from currency moves rather than underlying demand: On a constant-currency basis, revenue grew 4%, not 9%. If U.S. traffic weakens from here, the comparable sales streak could get tested. And a price-to-earnings ratio of 22 isn't cheap, either. It's a reasonable price for a business of this quality, not a deep discount.
For me, that adds up to a buy. Nobody should buy McDonald's expecting a growth stock. But a business growing comparable sales every quarter, earning mid-40% operating margins on a largely franchised model, and yielding 2.7% is the kind of thing I'd rather own closer to its 52-week low than its high. I'd watch guest counts and U.S. comparable sales from here, since those would show cracks first. But I think the price finally fits the business.
McDonald’s čeká na výsledky za 2. čtvrtletí a trh sleduje hlavně hodnotové nabídky, inovace v nabídce menu a silné mezinárodní tržby. Firma má ale záporné Earnings ESP ve výši -0,52 %.
Key Takeaways McDonald's is expected to benefit from value offerings, menu innovation and promotional campaigns.MCD may see support from strong international sales, digital engagement and franchised operations.McDonald's carries a negative Earnings ESP ahead of its second-quarter earnings report. McDonald's Corporation (MCD - Free Report) is scheduled to report second-quarter 2026 results on Aug. 4.
MCD’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 0.7%.
Trend in the Estimate Revision of MCDThe Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at $3.32, indicating a rise of 4.1% from $3.19 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $7.14 billion. The estimate suggests a rise of 4.3% from the year-ago quarter’s figure.
Factors Likely to Shape MCD’s Quarterly ResultsMcDonald's second-quarter 2026 revenues are likely to have benefited from the company's continued emphasis on value, which remained central to its growth strategy. The revamped McValue platform, featuring an everyday menu with items priced below $3 alongside affordable meal deals across multiple dayparts, is expected to have strengthened customer traffic, particularly among budget-conscious consumers. Management indicated that the enhanced value proposition was performing in line with expectations and was helping preserve market share despite a challenging consumer environment.
The company's marketing initiatives are also likely to have supported the top line. While April faced difficult comparisons against last year's successful Minecraft promotion, McDonald's entered the remainder of the quarter with a strong promotional calendar. Partnerships such as the Netflix-themed KPop Demon Hunters campaign and preparations for the FIFA-related activation are expected to have kept customer engagement high. These culturally relevant campaigns, combined with continued digital activation through the McDonald's app, likely helped sustain traffic across key markets.
Menu innovation may have been another important growth driver during the quarter. The nationwide rollout of McCafe beverages, including Refreshers and crafted sodas in the United States, alongside successful beverage platform launches in Germany and Canada, likely generated incremental demand. In addition, limited-time offerings across the beef and chicken categories, including the Big Arch burger and Hot Honey campaign, are expected to have maintained momentum in core menu categories. International markets such as the U.K., Germany and Australia are also likely to have contributed through disciplined execution of value, marketing and menu innovation, supporting comparable sales and market share gains.
Our model predicts total U.S. and International Operated Markets sales to increase 1.5% and 8.1% to $2.73 billion and $3.68 billion, year over year, respectively.
McDonald's bottom line in the second quarter is likely to have been supported by solid sales leverage, the resilience of its predominantly franchised business model and disciplined cost management. Management highlighted that restaurant margins remained strong, while supply-chain partnerships and hedging programs are expected to have cushioned against inflation in food, paper and energy costs. In addition, lower-than-anticipated financial support for the Extra Value Meals program, continued full-margin promotional offerings and favorable foreign currency translation are expected to have provided additional support to earnings during the quarter.
What Our Model Unveils About MCDOur proven model does not conclusively predict an earnings beat for McDonald’s this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that is not the case here.
Earnings ESP for MCD: McDonald’s has an Earnings ESP of -0.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
McDonald’s Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Poised to Beat on EarningsHere are a few stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +20.30% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, CAVA’s earnings are expected to increase 6.3% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with the average surprise being 16.6%.
Brinker International, Inc. (EAT - Free Report) currently has an Earnings ESP of +0.21% and a Zacks Rank of 3.
In the to-be-reported quarter, Brinker earnings are expected to register a 23.3% year-over-year decline. EAT’s earnings surpassed estimates in all of the trailing four quarters, with the average surprise being 6.8%.
Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +11.54% and a Zacks Rank of 2 at present.
In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. Sweetgreen’s earnings missed estimates in each of the trailing four quarters, with the average miss being 42.4%.
Investors aren't lovin' it. McDonald's (MCD -1.13%) is slated to hit the earnings drive-thru on Tuesday, Aug. 4, and ahead of that report, the fast food stock is slumping.
As of July 29, shares of the burger chain are off 9.6% year to date, a showing that's more than 400 basis points worse than that of the broader consumer discretionary sector. McDonald's is also laboring 20.4% below its 52-week high.
McDonald's has a dependable dividend, but a lot needs to go right for the stock to rebound. Image source: Getty Images.
For those mulling the stock as an earnings play, Wall Street expects McDonald's to report earnings per share of $3.32 on sales of $7.3 billion compared with year-earlier earnings of $3.19 and revenue of $6.8 billion. With inflation weighing on some of the Big Mac's core customers, the earnings report likely needs to be exceptional to spark a rally, but patient investors may find comfort in the dividend.
$10,000 in McDonald's stock equals decent income So, how much does $10,000 worth of this consumer discretionary stock generate in yearly income? Here's the math.
At a share price of $272, a $10,000 stake in McDonald's yields nearly 37 shares. The annual dividend on this stock is currently $7.35 per share, so 37 shares equal $271.95 in annual payouts. That's decent. It's actually pretty good for investors who don't need that income right now and can leverage the benefit of time by consistently reinvesting McDonald's dividends, allowing them to compound into a larger share position over the long term.
On the other hand, $272 a year in dividends isn't life-changing money, particularly for retirees facing inflationary pressures and high healthcare and long-term care costs. That underscores the point that investors should be diversified and not depend on a single stock, McDonald's or otherwise, for equity income.
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Putting McDonald's dividend into a direct Golden Arches context, Big Mac prices ranged from $4.67 to $6.72 about a year ago across the U.S. Call the average $5.70, and that means McDonald's dividend currently pays for 47.7 Big Macs -- and, no, these restaurants aren't serving partial burgers.
Good dividend news For investors who aren't overly impressed with McDonald's dividend, don't fret, because there's still something to see here. The fast-food giant is a committed dividend grower, as evidenced by a 5% increase last October.
That marked the 49th consecutive year the company raised its payout. Should it repeat that feat this year, and it likely will, that would make McDonald's a Dividend King, or one of the companies with 50 consecutive years of higher dividends.
Dividend growth is a safe bet with this stock because the company generated $2.4 billion in operating cash flow in the first quarter, easily surpassing capital spending of $1.7 billion. Additionally, McDonald's is a dedicated buyer of its own shares, thus shrinking its share count while making its dividend obligations more manageable.
McDonald's za čtvrtletí očekává EPS 3,32 USD a výnosy 7,14 miliardy USD, oba ukazatele by měly meziročně vzrůst. Zacks ale varuje, že firma nevypadá jako přesvědčivý kandidát na překonání odhadů.
The market expects McDonald's (MCD - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis world's biggest hamburger chain is expected to post quarterly earnings of $3.32 per share in its upcoming report, which represents a year-over-year change of +4.1%.
Revenues are expected to be $7.14 billion, up 4.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.53% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for McDonald's?For McDonald's, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.52%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that McDonald's will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that McDonald's would post earnings of $2.74 per share when it actually produced earnings of $2.83, delivering a surprise of +3.28%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
McDonald's doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Retail - Restaurants industry, Yum Brands (YUM - Free Report) , is soon expected to post earnings of $1.59 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +10.4%. Revenues for the quarter are expected to be $2.18 billion, up 12.8% from the year-ago quarter.
The consensus EPS estimate for Yum has been revised 0.6% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.63%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Yum will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Today, McDonald's Board of Directors declared a quarterly cash dividend of $1.86 per share of common stock payable on September 16, 2026 to shareholders of record at the close of business on September 1, 2026.
Upcoming Communications
For important news and information regarding McDonald's, including the timing of future investor conferences and earnings calls, visit the Investor Relations section of the Company's Internet home page at www.investor.mcdonalds.com. McDonald's uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.
About McDonald's
McDonald's is the world's leading global foodservice retailer with over 45,000 locations in over 100 countries. Approximately 95% of McDonald's restaurants worldwide are owned and operated by independent local business owners.
Forward-Looking Statements
This document contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from expectations are detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-Q filing for the quarter ended March 31, 2026. The Company undertakes no obligation to update such forward-looking statements, except as may otherwise be required by law.
McDonald’s zvýšil čtvrtletní dividendu na 1,86 USD na akcii a již více než 25 let v řadě zvyšuje výplatu. Tržby za 1. čtvrtletí fiskálního roku 2026 vzrostly na 6,52 miliardy USD a EPS překonal odhady.
Dividend growers build generational wealth. That is the entire premise behind a “buy and hold forever” portfolio: Own companies whose competitive moats let them pay you more every single year, regardless of what the macro backdrop looks like. In July 2026, three names still fit that description as cleanly as they did a decade ago, though each is trading through very different setups right now.
Here is the case for three stocks as long-duration dividend compounders, along with the risk each carries into the second half of 2026.
McDonald’s (NYSE: MCD) McDonald’s (NYSE:MCD | MCD Price Prediction) is the classic forever-hold: a global brand moat, franchise-heavy cash flows, and a dividend streak that keeps stretching. The most recent hike lifted the quarterly payout to $1.86 per share, and the company has now delivered 25+ consecutive years of dividend increases, putting it squarely in Dividend King territory. The yield sits at 2.59%.
The bull case rests on cash generation and unit growth. Q1 FY2026 revenue came in at $6.52 billion, up 9.4% year over year, with EPS of $2.83 beating expectations. Global comps rose 3.8%, and loyalty members drove more than $9.00 billion in systemwide sales in the quarter alone. CEO Chris Kempczinski put it plainly: “McDonald’s delivered this quarter. Our 6% global Systemwide sales growth shows how we executed with discipline.” Management is guiding to roughly 2,600 new restaurant openings and operating margin in the mid-to-high 40% range for FY2026.
Shares are down around 12% year to date and 9.75% over the past year, sitting well below the analyst target of $329.84. That underperformance is the entry point for long-term holders.
The risk: ongoing inflationary cost pressure on U.S. margins, higher interest expense, and restructuring charges expected to run through 2027. The dividend is safe. Near-term earnings growth is the question.
Procter & Gamble (NYSE: PG) P&G (NYSE:PG) is the definitional Dividend King. The company just extended its streak to a 70th consecutive annual dividend increase and has paid an uninterrupted dividend for 136 consecutive years since 1890. The Q2 2026 payout was bumped to $1.0885 per share, up from $1.0568. Yield: 2.79%.
If you want a portfolio anchor that keeps paying through recessions, wars, and rate cycles, this is it. Q3 FY2026 delivered $21.235 billion in net sales, up 7.4% year-over-year, with core EPS of $1.59. It was the fourth consecutive quarter of beating both top and bottom-line estimates. Free cash flow reached $3.026 billion in the quarter. Every one of the five segments grew, with Beauty leading at 7% organic growth. Management plans to return roughly $10 billion in dividends and $5 billion in buybacks this fiscal year.
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CEO Shailesh Jejurikar summed up the setup: “We delivered a solid acceleration in top-line results in our fiscal third quarter, with broad-based growth across product categories and regions.” P&G fits neatly into a broader Dividend King framework that income-focused investors are studying more closely this year (our 10 Dividend Kings to Buy Now report walks through the criteria).
The risk: tariffs. Management flagged a ~$400 million after-tax tariff headwind for FY2026 plus a ~$150 million commodity drag, and results are now expected toward the lower end of the core EPS guide of $6.83 to $7.09.
Visa (NYSE: V) Visa (NYSE:V) is the growth-oriented dividend name in this trio. The current yield of 0.74% looks small, but that is the whole point: Visa reinvests aggressively while raising the payout at a double-digit clip. The October 2025 hike raised the quarterly dividend from $0.59 to $0.67, a 14% increase, extending an 18+ year streak of annual increases.
The moat is a near-duopoly network processing enormous volume. Q1 FY2026 net revenue hit $10.90 billion, up 14.6%, with non-GAAP EPS of $3.17. Data processing revenue, the highest-margin engine, grew 17% to $5.54 billion. Visa also repurchased roughly 11 million shares for $3.8 billion in the quarter, with $21.1 billion remaining on the authorization.
CEO Ryan McInerney credited “resilient consumer spending and a strong holiday season, as well as continued strength in value-added services and commercial and money movement solutions.” Shares are up 11% over the past month and 45% over the past five years, with analysts targeting $398.70.
The risk: the interchange MDL litigation is an ongoing GAAP overhang, with a $707 million provision in Q1 FY2026 alone. Global regulatory scrutiny of merchant fees is the multi-year variable to watch.
The Bottom Line These are three different flavors of the same idea. MCD offers a defensive Dividend King entering a rebuild year at a discount. PG offers the longest-running income streak in American business, with tariff pressure providing a rare re-entry point. Visa offers dividend growth funded by structural payment volume. The “forever” part is the ability to raise the payout every year for the next twenty.
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Andra AP fonden raised its position in McDonald’s Corporation (NYSE:MCD – Free Report) by 995.1% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 87,171 shares of the fast-food giant’s stock after buying an additional 79,211 shares during the quarter. Andra AP fonden’s holdings in McDonald’s were worth $27,092,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently made changes to their positions in the company. Your Advocates Ltd. LLP bought a new position in shares of McDonald’s in the fourth quarter worth $27,000. Park Place Capital Corp boosted its stake in McDonald’s by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock worth $28,000 after purchasing an additional 45 shares during the period. IFC & Insurance Marketing Inc. bought a new position in McDonald’s in the 4th quarter worth about $29,000. Abound Financial LLC purchased a new position in McDonald’s during the 4th quarter valued at about $30,000. Finally, DecisionPoint Financial LLC grew its holdings in McDonald’s by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock valued at $31,000 after buying an additional 97 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.
McDonald’s Price Performance MCD stock opened at $267.50 on Tuesday. The firm has a 50 day simple moving average of $276.94 and a two-hundred day simple moving average of $299.99. The stock has a market cap of $190.06 billion, a PE ratio of 22.05, a P/E/G ratio of 2.78 and a beta of 0.41. McDonald’s Corporation has a one year low of $264.09 and a one year high of $341.75.
McDonald’s (NYSE:MCD – Get Free Report) last released its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, beating analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The business had revenue of $6.52 billion for the quarter, compared to analysts’ expectations of $6.47 billion. During the same quarter in the prior year, the firm earned $2.67 earnings per share. The firm’s revenue was up 9.4% on a year-over-year basis. On average, research analysts expect that McDonald’s Corporation will post 12.86 EPS for the current fiscal year.
McDonald’s Announces Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were given a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.8%. McDonald’s’s payout ratio is presently 61.34%.
Analysts Set New Price Targets A number of analysts recently weighed in on MCD shares. Weiss Ratings lowered shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Barclays reduced their price target on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. BTIG Research reaffirmed a “buy” rating and issued a $370.00 price target on shares of McDonald’s in a report on Thursday, May 7th. TD Cowen reiterated a “hold” rating on shares of McDonald’s in a research report on Friday, June 12th. Finally, Tigress Financial lifted their price objective on McDonald’s from $385.00 to $390.00 and gave the company a “buy” rating in a research note on Friday. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $336.32.
Check Out Our Latest Research Report on McDonald’s
Insider Activity at McDonald’s In other 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 completion of the sale, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 8,681 shares of company stock valued at $2,456,440. 0.26% of the stock is owned by insiders.
McDonald’s News Summary Here are the key news stories impacting McDonald’s this week:
Positive Sentiment: One Seeking Alpha article argues that McDonald’s recent sell-off is creating an opportunity for investors, signaling that the stock may be undervalued after its decline. McDonald’s Sell-Off Is Your Opportunity Positive Sentiment: Another article upgraded McDonald’s to Buy, saying its consistency deserves a higher valuation and pointing to accelerating top- and bottom-line growth as signs of a potential turnaround. McDonald’s: Consistency Deserves A Better Multiple (Rating Upgrade) Positive Sentiment: A separate bullish note said the stock is attractive after compression in earnings multiples and highlighted recent catalysts that could improve the business outlook. McDonald’s: Consistency Deserves A Better Multiple (Rating Upgrade) Positive Sentiment: Coverage from Zacks focused on generally optimistic Wall Street analyst sentiment, which can support shares when investors expect favorable estimates or ratings. Is McDonald’s (MCD) a Buy as Wall Street Analysts Look Optimistic? Neutral Sentiment: Several lifestyle and menu-focused stories highlighted product novelty, including a new Caesar sauce and a drink item resembling a Starbucks-style pink drink, but these appear more brand-interest driven than material near-term catalysts. Review: McDonald’s Caesar sauce is the tangy menu addition we didn’t know we needed Negative Sentiment: Some recent commentary remains cautious, with one piece saying McDonald’s stock “still not good enough,” reinforcing that not all investors are convinced the valuation or growth outlook has improved enough. McDonald’s: Still Not Good Enough Negative Sentiment: An article on MCD’s 2026 weakness noted the stock is down sharply this year and said investors are bracing for softer same-store sales ahead of the next earnings report, which can weigh on sentiment. McDonald’s (MCD) Stock Struggles Continue: What’s Behind the 2026 Decline? About McDonald’s (Free Report)
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.
Further Reading Five stocks we like better than McDonald’s The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding MCD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McDonald’s Corporation (NYSE:MCD – Free Report).
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McDonald’s Corporation (NYSE:MCD – Get Free Report) shares reached a new 52-week low during trading on Wednesday after Wells Fargo & Company lowered their price target on the stock from $320.00 to $300.00. Wells Fargo & Company currently has an overweight rating on the stock. McDonald’s traded as low as $264.09 and last traded at $264.8750, with a volume of 3660290 shares traded. The stock had previously closed at $268.94.
MCD has been the topic of a number of other reports. Rothschild & Co Redburn upgraded McDonald’s from a “sell” rating to a “neutral” rating and upped their price objective for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Erste Group Bank cut McDonald’s from a “buy” rating to a “hold” rating in a report on Monday, April 27th. BTIG Research reissued a “buy” rating and set a $370.00 target price on shares of McDonald’s in a research report on Thursday, May 7th. Robert W. Baird set a $305.00 target price on McDonald’s in a research report on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 price target on McDonald’s in a report on Thursday, July 9th. Fifteen investment analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $335.58.
Check Out Our Latest Stock Analysis on McDonald’s
Insider Transactions at McDonald’s In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly 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 transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the business’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 value of $1,493,248.64. Following the transaction, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,681 shares of company stock worth $2,456,440 over the last three months. 0.26% of the stock is currently owned by corporate insiders.
McDonald’s News Summary Here are the key news stories impacting McDonald’s this week:
Positive Sentiment: McDonald’s is rolling out new limited-time items, including Caesar sauce, new chicken offerings, and other menu tests, which could help boost customer interest and restaurant traffic. McDonald’s builds its new menu around a flavor it never sold Positive Sentiment: Analysts continue to view McDonald’s as a strong defensive restaurant name, with commentary pointing to customer engagement, value messaging, and marketing campaigns as potential supports for sales. Can McDonald’s Global Marketing Strategy Drive Customer Traffic? Positive Sentiment: One Wall Street note kept a Buy rating on MCD even while trimming its price target, suggesting analysts still see upside from current levels. Citigroup price target change Neutral Sentiment: McDonald’s is drawing extra attention from investors and traders, with recent coverage framing the stock as a valuation and defensive-name debate rather than a clear new catalyst. MCD at $268, Starbucks at $106: Buy, Sell or Hold? Negative Sentiment: Several articles focus on ongoing “McProblem” issues, including concerns that McDonald’s traffic and business momentum have not improved enough, which may be reinforcing investor worries about the core growth outlook. McDonald’s has a McProblem that’s not getting better Negative Sentiment: Another report says McDonald’s stock is near its lowest levels in almost two years, highlighting pressure from weaker sentiment and a more cautious view of the company’s growth. Why McDonald’s stock is at nearly 2-year lows Hedge Funds Weigh In On McDonald’s Several hedge funds have recently bought and sold shares of MCD. Norges Bank bought a new position in shares of McDonald’s in the fourth quarter worth about $2,890,438,000. Diamant Asset Management Inc. increased its stake in McDonald’s by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after buying an additional 2,587,986 shares during the period. 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 buying an additional 2,515,515 shares in 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 buying an additional 1,974,998 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in McDonald’s by 49.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant’s stock valued at $948,779,000 after buying an additional 1,033,041 shares during the period. Institutional investors own 70.29% of the company’s stock.
McDonald’s Trading Up 3.2% The company has a market capitalization of $194.24 billion, a PE ratio of 22.54, a PEG ratio of 2.75 and a beta of 0.41. The firm’s 50-day simple moving average is $277.23 and its 200-day simple moving average is $300.56.
McDonald’s (NYSE:MCD – Get Free Report) last issued its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same period last year, the company posted $2.67 earnings per share. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. As a group, analysts anticipate that McDonald’s Corporation will post 12.9 EPS for the current year.
McDonald’s Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were paid a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald’s’s dividend payout ratio is 61.34%.
McDonald’s Company Profile (Get Free Report)
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.
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McDonald’s v 1. čtvrtletí 2026 podpořil globální marketing růst srovnatelných tržeb o 3,8 % a zisk podílu na trhu téměř ve všech 10 největších trzích. Tahaly ho lokální kampaně a partnerské akce se zábavními značkami.
Key Takeaways McDonald's used entertainment partnerships and local campaigns to support customer engagement worldwide.Global marketing helped deliver 3.8% comparable sales growth and market share gains in most top 10 markets.Australia paired value, marketing, menu innovation and beverages to drive sales growth and share gains. McDonald's Corporation (MCD - Free Report) has been reinforcing customer engagement through a global marketing strategy built around cultural relevance, entertainment partnerships and localized campaigns. While value and menu innovation remain central to the company's growth strategy, marketing has become an important tool for attracting new customers, strengthening brand engagement and supporting restaurant traffic across key markets.
During the first quarter of 2026, McDonald's combined globally recognized entertainment brands with locally relevant campaigns to reach customers across different age groups and occasions. Initiatives included the Friends collectibles campaign in several international markets, a Super Mario Happy Meal promotion and a Netflix KPop Demon Hunters partnership that integrated digital activation through the McDonald's app.
The company also expanded successful campaigns across multiple countries, allowing local ideas to reach a broader audience while maintaining brand consistency. In the first quarter of 2026, this marketing approach supported global comparable sales growth of 3.8%, 6% rise in constant-currency systemwide sales and market share gains in nearly all of the company's top 10 markets.
The strategy extends beyond short-term promotional activity. Marketing is designed to complement value offerings and menu innovation, creating multiple reasons for customers to visit restaurants. Australia demonstrated this approach by pairing value menus, marketing activations, menu innovation and beverage initiatives, contributing to mid to high-single-digit comparable sales growth and a third consecutive quarter of market share gains.
As consumer spending remains uneven across many markets, McDonald's broad marketing platform, supported by global scale and local execution, could remain an important factor in sustaining customer traffic and reinforcing its competitive position.
MCD’s Price Performance, Valuation & EstimatesShares of McDonald’s have dropped 11.7% in the past year compared with the industry’s decline of 8.3%. In the same time frame, other industry players like, Starbucks Corporation (SBUX - Free Report) has gained 12.8% and Dutch Bros Inc. (BROS - Free Report) has increased 0.6%.
MCD Stock’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.43, above the industry’s average of 3.29. Then again, other industry players, such as Starbucks and Dutch Bros, have P/S ratios of 3.02 and 4.78, respectively.
MCD’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MCD’s 2026 earnings per share has declined from $12.93 to $12.90 in the past seven days.
EPS Trend of MCD Stock
Image Source: Zacks Investment Research
The company is likely to report strong earnings, with projections indicating a 5.7% year-over-year increase in 2026. Conversely, industry players like Dutch Bros are likely to rise 22.4% in 2026 earnings. Starbucks is likely to witness growth of 12.7% year over year in fiscal 2026 earnings.
MCD’s Zacks RankMCD stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald’s je letos v minusu 9,1 % a obchoduje se téměř 20 % pod 52týdenním maximem. Firma sice získala zpět část zákazníků s nižšími příjmy, ale tlak na náklady a slabší marže v USA brzdí další růst.
Key Takeaways McDonald's shares are down 9.1% year to date and trade nearly 20% below their 52-week high.McValue helped win back some lower-income customers and lift market share across nearly all top markets.Cost inflation, falling lower-income traffic and weak U.S. restaurant margins may limit near-term upside. Shares of McDonald's Corporation (MCD - Free Report) have lost 9.1% year to date against the Zacks Retail - Restaurants industry's 3.5% rise. The stock closed at $274.60 on Friday, nearly 20% below its 52-week high of $341.75 (attained on March 2, 2026). Meanwhile, the S&P 500 has advanced 11.5% year to date, highlighting MCD’s sharp underperformance relative to the broader market.
The pullback has brought the stock’s valuation to a more moderate level, drawing attention to whether the current discount provides an attractive entry point.
McDonald’s retains several structural advantages, including global scale, strong brand recognition, a predominantly franchised business model and a substantial restaurant-development pipeline. However, continued pressure on lower-income consumers, elevated operating costs and weaker profitability at U.S. company-operated restaurants temper the near-term investment case.
MCD YTD Price Performance
Image Source: Zacks Investment Research
MCD Stock Trades at a DiscountMcDonald’s is trading at a forward 12-month price-to-earnings ratio of 20.28, below the Zacks industry multiple of 23.01. This represents a discount of nearly 12% to the industry.
The lower multiple provides a more favorable valuation framework for investors seeking exposure to a globally scaled restaurant operator. However, the discount alone does not make MCD an outright buy. Consumer pressure, franchisee profitability and U.S. company-operated restaurant performance remain important considerations when assessing the stock.
MCD P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The key question is whether McDonald’s value strategy, menu innovation and international expansion can support traffic and earnings growth despite pressure on restaurant-level economics. Let us examine the factors shaping the investment case.
McDonald’s Value Strategy Supports Its Competitive PositionValue and affordability remain central to McDonald’s customer strategy. In the United States, the company expanded the McValue platform to include an everyday affordable-price menu featuring individual items below $3 and a $4 breakfast meal. These offerings complement the existing $5 McChicken and $6 McDouble meal deals.
The platform combines entry-level prices with bundled meal options across dayparts. McDonald’s stated that an effective value architecture requires both components: individually priced items for budget-conscious consumers and meal bundles centered on core menu offerings. The company has applied a similar approach across most of its major international markets. The United Kingdom offers Meal Deal Plus, while Germany’s McSmart platform and Australia’s McSmart Meals and Loose Change menu provide locally tailored value options.
McDonald’s reported improved value and affordability perceptions following these initiatives. The company also indicated that its value platform helped recapture some lower-income customers and supported market-share gains across nearly all of its top 10 markets.
MCD’s Marketing and Beverage Push Drive Customer EngagementMcDonald’s is pairing its value platform with culturally relevant marketing and focused menu innovation. Campaigns tied to Friends, The Super Mario Galaxy Movie and KPop Demon Hunters demonstrate the company’s ability to develop promotions for different customer groups and scale selected concepts across its global system.
The FIFA World Cup provides another major marketing platform. McDonald’s has maintained a relationship with the tournament for more than three decades and has planned promotional activity across the United States, Canada and Mexico for the 2026 event.
Beverages are also becoming a more prominent part of the company’s menu strategy. McDonald’s has introduced refreshers and crafted sodas under the McCafe brand in the United States, while Germany and Canada have launched beverage platforms of their own. The company also plans to introduce additional flavors and Red Bull-infused energy drinks later in the year.
McDonald’s Restaurant Expansion Extends Its Growth RunwayRestaurant expansion remains a key component of McDonald’s long-term strategy. The company continues to target approximately 50,000 restaurants by the end of 2027. China is expected to account for a significant portion of development activity. McDonald’s remains on track to open approximately 1,000 restaurants in the market during 2026.
At the same time, the company is maintaining a returns-focused approach to capital deployment. McDonald’s is reassessing parts of its development pipeline as supply-chain disruption and higher construction costs affect project economics. The company has emphasized that development decisions will depend on expected returns for both McDonald’s and its franchisees rather than the pursuit of an absolute unit-growth target.
MCD’s Concerns: Lower-Income Traffic & Cost InflationThe lower valuation is not without cause. McDonald’s expects second-quarter comparable-sales growth in the United States and International Operated Markets to decelerate meaningfully from the first quarter. April comparable sales were slightly negative in both segments as the company lapped the highly successful Minecraft promotion from the prior year.
Consumer conditions also remain uncertain. Higher-income customers continue to spend at resilient levels, but visits from lower-income consumers are still declining. Elevated gasoline prices and broader inflationary pressure could further constrain discretionary spending among this group, despite McDonald’s improving value perception.
Profitability presents another concern. McDonald’s described its U.S. company-operated restaurant margins as unacceptable. The weakness was tied partly to additional labor investment and restrained menu pricing. The company is evaluating whether certain restaurants would generate stronger returns under franchisee ownership.
Franchisee profitability is also under pressure from beef inflation and other operating costs. McDonald’s expects low- to mid-single-digit food and paper inflation in the United States and mid-single-digit inflation across International Operated Markets. Although hedging and supplier relationships should help the company manage 2026 pressures, cost inflation could intensify toward the end of 2026 and into 2027.
MCD's Competitive Landscape Remains IntenseMcDonald’s operates in a competitive restaurant market, with peers investing in value, menu innovation, loyalty and unit expansion. Chipotle Mexican Grill, Inc. (CMG - Free Report) is advancing restaurant execution, rewards engagement and menu innovation, while Starbucks Corporation (SBUX - Free Report) is strengthening service, beverage platforms and digital frequency through its Back to Starbucks plan. Shake Shack Inc. (SHAK - Free Report) is also expanding its premium menu, technology capabilities and restaurant footprint.
McDonald’s global scale, franchise network and established value platform remain important advantages. Nonetheless, continued execution across McValue, beverages and chicken will likely be necessary to sustain traffic and market share as competitors increase investment across similar growth areas.
MCD Stock Valuation InsightsOver the past 60 days, the Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) has declined 0.7%. During the same period, Starbucks’ estimate has increased 0.4%, while Shake Shack’s estimate has fallen 7.3%. The consensus estimate for Chipotle’s EPS has remained unchanged at $1.13 in the same time frame.
MCD’s Earnings Estimate Trend
Image Source: Zacks Investment Research
Is It Time to Buy MCD Stock?McDonald’s recent underperformance has brought its valuation below the industry average, but the discount does not signal a clear near-term earnings inflection. The company’s scale, brand strength, franchise-heavy model and value-led strategy continue to support market-share resilience and long-term stability, justifying a Zacks Rank #3 (Hold) stance for existing investors. However, persistent pressure on lower-income traffic, elevated cost inflation, weaker U.S. company-operated restaurant margins and intense competition may constrain upside in the near term.
With valuation more attractive but operating visibility still limited, MCD’s risk-reward profile appears balanced at current levels. Long-term investors may remain invested, supported by the company’s durable business model and global development runway. Prospective investors may remain selective, given the balanced risk-reward profile and limited near-term earnings visibility.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald’s vidí mistrovství světa FIFA 2026 jako šanci zvýšit zapojení zákazníků a návštěvnost restaurací. V USA, Kanadě a u Arcos Dorados chystá marketing spojený s turnajem během turnaje.
Key Takeaways McDonald's sees the 2026 FIFA World Cup as a chance to deepen engagement and lift restaurant traffic.McDonald's plans event-linked marketing across the U.S., Canada and Arcos Dorados during the tournament.McValue, McCafe and menu innovation may help convert World Cup attention into more restaurant visits. McDonald’s Corporation (MCD - Free Report) is navigating a challenging consumer backdrop from a position of strength. In the first quarter of 2026, global comparable sales increased 3.8%, while systemwide sales grew 6% in constant currency. The company also gained market share across nearly all of its top 10 markets, underscoring the effectiveness of its value-led strategy. As the FIFA World Cup unfolds across North America, McDonald's has an opportunity to build on that momentum by using one of the world's largest sporting events to deepen customer engagement and support restaurant traffic.
FIFA Supports McDonald's Customer Engagement StrategyMcDonald's has maintained a relationship with the FIFA World Cup for more than three decades, but the 2026 tournament carries added strategic significance as matches are being hosted across the United States, Canada and Mexico. Management stated that its U.S. and Canadian businesses, together with Arcos Dorados, have a robust marketing calendar tied to the event, reflecting the company's intent to capitalize on heightened consumer attention during the tournament.
The World Cup complements McDonald's broader growth strategy rather than serving as a standalone initiative. The company continues to pair compelling value with culturally relevant marketing and menu innovation to drive customer traffic. Its recently enhanced McValue platform, featuring under-$3 menu items and expanded meal deals, strengthens its affordability proposition, while the nationwide rollout of the new McCafe beverage platform broadens consumption occasions beyond traditional meal times. Together, these initiatives likely position McDonald's to translate event-driven consumer engagement into incremental restaurant visits.
However, weak consumer sentiment, elevated gas prices and continued pressure on lower-income customers remain concerns. Nevertheless, McDonald’s emphasis on disciplined execution and its enhanced McValue platform bodes well. If McDonald’s successfully integrates its FIFA activation with its value, marketing and menu strategies, the tournament could help reinforce customer engagement and support sales momentum through the remainder of 2026.
MCD’s Price Performance, Valuation & EstimatesShares of McDonald’s have dropped 2.8% in the past year compared with the industry’s fall of 4.3%. In the same time frame, other industry players, including Starbucks Corporation (SBUX - Free Report) , have gained 12%, while Dutch Bros Inc. (BROS - Free Report) lost 2.1%.
MCD Stock’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.75, above the industry’s average of 3.38. Then again, other industry players, such as Starbucks and Dutch Bros, have P/S ratios of 2.98 and 4.88, respectively.
MCD’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MCD’s 2026 earnings per share has declined from $13.07 to $12.93 in the past 60 days.
EPS Trend of MCD Stock
Image Source: Zacks Investment Research
The company is likely to report strong earnings, with projections indicating a 6% year-over-year increase in 2026. Conversely, industry players like Dutch Bros are likely to project a rise of 22.4% in 2026 earnings. Starbucks is likely to witness growth of 12.7% year over year in fiscal 2026 earnings.
MCD’s Zacks RankMCD stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald's ve čtvrtek vyskočil asi o 4 %, zatímco Nasdaq klesl o 0,8 %. Řetězec má 49 let po sobě rostoucí dividendu a čtvrtletní výplatu 1,86 USD na akcii.
On a day when investors sold their technology winners, they went shopping for shelter -- and found the golden arches. McDonald's (MCD +4.08%) jumped about 4% on Thursday while the Nasdaq Composite slipped 0.8%, marking one of the sharpest single-day gaps between the burger giant and the tech-heavy index this year.
One strong session doesn't settle much on its own. McDonald's shares are still down about 8% in 2026 as of this writing, and they sit nearly 18% below their 52-week high. But the rotation raises a fair question: If nervous money is hunting for defensive dividend payers, does this one deserve the bid?
Image source: Getty Images.
A reliable royalty stream The case for McDonald's as a defensive holding starts with what the company actually sells -- and it mostly isn't hamburgers. Of the 45,356 McDonald's restaurants at the end of 2025, about 95% were franchised. The company's income arrives largely as royalties and rent from those franchisees, payments that keep flowing even when a franchisee's own margins get squeezed.
The company's own accounts show how lopsided the economics are. In 2025, franchised locations generated $13.9 billion in margin dollars, against $1.4 billion from company-operated restaurants -- more than 90% of the restaurant margin pool, flowing from the fee-collecting side of the business.
That structure is why the stock attracts money in anxious markets. It's also why the dividend record runs so deep: McDonald's has raised its payout for 49 consecutive years, a streak dating to its first dividend in 1976.
The dividend stock's quarterly payout now stands at $1.86 per share, for a dividend yield of about 2.7% at the current price. If the pattern holds, this fall's increase would be the 50th in a row -- a milestone very few public companies ever reach.
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Lagging stock, steady business If the model is this durable, why has the stock lagged all year? Because steady isn't the same as exciting. In the first quarter, global comparable sales rose 3.8%, and earnings per share came in at $2.78 -- up 7%, though just 2% in constant currencies. Growth like that looks slow next to what technology stocks have been delivering, and the market priced it accordingly. U.S. comparable sales rose 3.9% in the quarter, and consolidated operating income grew 12%.
"Our 6% global Systemwide sales growth shows how we executed with discipline, proving that we can drive results even in a challenging environment," said CEO Chris Kempczinski in the company's first-quarter earnings release.
Under the surface, though, the quarter carried more momentum than the headline suggests. Global systemwide sales -- the sales of the whole restaurant network, franchised and company-owned alike -- grew 11%, to more than $34 billion. And the loyalty program has quietly become enormous, with members spending over $9 billion in the quarter across 70 markets.
Those loyalty numbers matter for the defensive case. A customer who orders through the app tends to come back, and tens of millions of them give McDonald's pricing and promotion levers that most restaurant chains can't match in a weak consumer economy. In a downturn, fast food also tends to catch customers trading down from pricier meals, which is part of why the stock attracts defensive buyers in the first place.
The risks are the quiet kind: a value war that squeezes franchisees, a consumer trade-down that even loyalty can't fully offset, and a payout that already consumes about 60% of earnings, which caps how fast the dividend can grow from here.
So, is the Dividend Juggernaut back? The better answer is that it never left -- the stock just spent six months out of style. Thursday's pop reflected the market's mood, not a change in the business, and moods reverse without warning.
What matters for buyers today is the price of that durability. At about $281 per share, McDonald's trades at about 23 times earnings -- a discount to where several defensive consumer names have been bid this year, for a royalty-style business with half a century of dividend growth behind it.
For income investors, I think that's a reasonable entry -- not because of one rotation-day pop, but because the yield is decent and sustainable, and the valuation doesn't require anything spectacular. As a dividend stock, McDonald's earns its place the boring way. I'd just buy it for the royalties, not the rally.
McDonald’s zvýšil čtvrtletní dividendu na 1,86 USD na akcii, i když franšízanti čelí tlaku inflace a slabší spotřebitelské nálady. Díky royalty modelu zůstává výplata dobře krytá hotovostí.
McDonald’s (NYSE:MCD | MCD Price Prediction) just paid its latest quarterly dividend of $1.86 per share on June 16, extending one of the most reliable income streams in the Dow. Yet the same company sending checks to shareholders is presiding over a franchisee system buckling under inflation, tariff disruption and the weakest consumer sentiment reading in years. Both stories are true, and the reason has everything to do with how McDonald’s actually makes money.
The Q1 2026 payment alone totaled roughly $1.3 billion, and the company has now raised its dividend at the corporate level even as operators in the field absorb the brunt of higher costs. This is the cleanest case study in corporate America of how an asset-light royalty model insulates the parent from the operating pain felt at the unit level.
The Dividend Itself: A Quiet 5% Raise Into a Tough Environment McDonald’s lifted its quarterly payout from $1.77 to $1.86 in Q4 2025, a roughly 5% bump declared in October 2025. That new rate has now carried through three consecutive quarters, and at the current share price of $267.18, the trailing yield sits at 3% on an annualized $7.26 per share.
For context, the dividend has climbed from 4 cents in 1999 to $1.86 in 2026. That is a Dividend Aristocrat track record built across recessions, commodity shocks, and three CEO transitions. The most recent raise landed despite a stock that has fallen 12% year to date and 6% over the past year.
Why the Dividend Keeps Rising: The Royalty Engine The franchise model is the entire answer. Roughly 90% of McDonald’s restaurant margin dollars come from franchised stores, and in Q1 2026 those franchised restaurants generated $4.007 billion in revenue, up 9% year over year. Corporate collects royalties and rent off the top, before the operator pays a single employee or buys a single case of beef.
The downstream math is striking:
FY2025 revenue: $26.885 billion FY2025 operating income: $12.393 billion FY2025 net income: $8.563 billion Operating margin: 46% Gross margin: 57% A 46% operating margin reflects a real-estate and royalty business. Cost of revenue in 2025 was just $11.45 billion against nearly $27 billion in top line, because the company is not paying franchisee labor or food costs. Those expenses sit on the operator’s P&L.
The Cash Flow Backing the Payout Dividend sustainability comes down to free cash flow, and on this metric McDonald’s has rarely looked stronger. Operating cash flow hit $10.551 billion in 2025, up 12% year over year, against capital expenditures of $3.365 billion. That leaves $7.186 billion in free cash flow to cover the $5.115 billion sent to dividend recipients last year.
The Q1 2026 snapshot confirms the trend held: operating cash flow of $2.412 billion, free cash flow of $1.730 billion, and a dividend distribution of $1.323 billion. Buybacks added another $393 million in the quarter, on top of $2.056 billion repurchased across 2025.
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Where the Operator Pain Lives The franchisee struggle is structural. Three forces are squeezing unit-level economics at the same time:
Consumer sentiment collapse: The University of Michigan Consumer Sentiment Index printed 44.8 in May 2026, down from 49.8 in April, and is now well below the 60-point recessionary threshold. The 12-month peak was 61.7 in July 2025. That deterioration directly hits low-income traffic, the demographic most exposed to value menus. Cost stack pressure: Management has flagged inflationary cost pressures, supply chain interruptions, and tariff/trade policy disruptions, along with restructuring charges from the “Accelerating the Organization” program running through 2027. Flat food-services wallet share: Food services PCE has only crept from $1,491.4 billion in May 2025 to $1,538.3 billion in May 2026, holding at roughly 10% of total services spending. The category is not expanding fast enough to lift all operators. Reddit picked up on the disconnect. In early June, r/wallstreetbets ran a sustained bearish cluster on MCD with sentiment scores of 22 to 28 and an activity score peaking at 73 on June 5, the highest in the dataset. By June 26, sentiment had stabilized to neutral in the 45 to 52 range, but the franchisee angle clearly hit a nerve with retail investors.
Corporate Results Say the Model Is Still Working For all the franchisee pressure, Q1 2026 corporate results were strong: EPS of $2.83 beat by 3%, revenue of $6.517 billion grew 9% year over year, and global comparable sales rose 4% with U.S. comps at 4%. The loyalty program is doing real work here, with systemwide sales to members exceeding $9 billion in Q1 2026 and trailing twelve-month loyalty sales topping $38 billion across 70 markets.
Prediction markets confirmed the operational momentum. Polymarket’s Q2 2026 earnings beat contract resolved YES at 99 cents on May 7, the third straight beat in a row for MCD on the platform.
The Dividend Scorecard Metric Value Read Yield 3% Above 10-year average P/E (Trailing) 22 Reasonable for quality Forward P/E 21 Modest growth priced in FCF Coverage $7.19 billion FCF vs. $5.12 billion dividends Comfortable Payout vs. Net Income $5.12B of $8.56B Healthy Beta 0.414 Defensive profile Dividend Aristocrat Streak Decades of consecutive annual increases Elite tier On the data above, this is an A-grade dividend payer. Coverage is wide, the growth streak is long, and the cash engine that feeds the payout is structurally separated from the unit-level pressure that dominates headlines.
What to Watch Next The real risk lives in the franchisee feedback loop. If sentiment stays sub-60 into the back half of 2026 and operators pull back on remodels, hiring, or new-build commitments, corporate’s 2026 plan for roughly 2,600 new restaurant openings and $3.7 to $3.9 billion in capex gets harder to execute. Management guided to an operating margin in the mid-to-high 40% range for the year, with free cash flow conversion in the low-to-mid 80% range. Those are the numbers that ultimately fund the next raise.
The next dividend declaration should land in late October 2026 based on prior cadence. Given the cash coverage and management’s stated capital return posture, another mid-single-digit raise is the base case. Franchisees may keep struggling. The dividend keeps rising. Both will remain true as long as the royalty model holds.
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McDonald’s letos plánuje otevřít v Číně zhruba 1 000 restaurací, i když slabší spotřebitelské podmínky dál tlačí na krátkodobý růst tržeb. Ve 2. čtvrtletí firma čeká zpomalení srovnatelných tržeb kvůli volatilitě na Blízkém východě a v Asii.
Key Takeaways MCD plans to open about 1,000 restaurants in China this year despite softer consumer conditions.MCD's China market share held steady in Q1 as the company continued advancing its development agenda.MCD expects Q2 IDL comparable sales growth to slow amid Middle East and Asia market volatility. McDonald’s Corporation (MCD - Free Report) continues to position China as a long-term growth lever within its International Developmental Licensed (IDL) segment, even as near-term macroeconomic pressure remains a constraint. In the first quarter of 2026, IDL comparable sales increased 3.4%, driven by continued strength in Japan. While China remains challenged by softer consumer conditions, McDonald’s maintained market share and continued to advance its development agenda, with management reaffirming plans to open approximately 1,000 restaurants in the market this year.
The development commitment underscores management’s confidence in China’s long-term unit-growth potential. However, with macroeconomic pressure in China expected to persist, the benefit of new restaurant openings is more likely to support long-term system growth than provide an immediate offset to near-term IDL volatility.
The broader IDL outlook also remains uneven. McDonald’s expects second-quarter IDL comparable sales growth to decelerate from first-quarter levels, primarily due to volatility in the Middle East and some markets in Asia. Broader cost inflation and supply-chain uncertainty add another layer of pressure to the global operating backdrop.
Even so, McDonald’s retains several levers to defend segment performance. Its value focus, marketing scale and disciplined local execution should help support demand across international markets. China’s share stability points to sustained brand relevance despite weaker consumer conditions, while Japan’s continued strength provides a stabilizing factor for the segment.
Overall, China expansion is unlikely to fully offset near-term macro pressure across IDL markets. However, disciplined execution of the restaurant-opening plan, combined with continued share stability, could make China an important contributor to McDonald’s broader international growth strategy over time.
McDonald’s Competitive PositionYum! Brands, Inc. (YUM - Free Report) provides a relevant benchmark because it is also using franchise-led development and international scale to support growth in a volatile backdrop. In the first quarter of 2026, KFC opened 648 new stores, supported by a strong start in China and development across 45 countries. YUM also noted that the Middle East conflict has caused some uncertainty and short-term delays in select markets, but it does not expect a change to KFC’s development plans for the year.
Starbucks Corporation (SBUX - Free Report) offers another China comparison, as it is shifting toward a licensed structure while pursuing transaction-led recovery. In the second quarter of fiscal 2026, Starbucks China delivered positive comps, supported by transaction growth of more than 2%. The company also plans to expand its China footprint from more than 1,000 county-level cities today to more than 1,500 over the next three years.
Against this backdrop, McDonald’s positioning depends on whether China unit growth can translate into sustained share stability and stronger long-term IDL performance. Yum! Brands is leaning on franchisee strength and development momentum, while Starbucks is using local partnership and transaction-led growth to support China expansion. McDonald’s differentiation lies in its ability to pair disciplined China development with value, marketing scale and brand relevance.
SBUX’s Price Performance, Valuation & EstimatesShares of McDonald’s have declined 9.2% in the past year compared with the industry’s fall of 7.4%.
MCD’s One-Year Price Performance
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From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.43, above the industry’s average of 3.30.
MCD’s P/S Ratio (Forward 12-Month) vs. Industry
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The Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) implies a year-over-year increase of 6%. The EPS estimates for 2026 have remained unchanged in the past 30 days.
EPS Trend of MCD Stock
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MCD’s Zacks RankMCD stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
