Warren Buffett has never been shy about the great businesses he let slip through his fingers. One of the most painful was McDonald's (MCD +0.75%), which Berkshire Hathaway (BRKB +0.79%) (BRKA +1.14%) sold in the late 1990s in a move Buffett flatly called "a very big mistake." Berkshire has passed on the stock ever since. I think Greg Abel, Berkshire's new chief executive officer, will eventually buy it back, and the reason is simple: McDonald's is a textbook Berkshire business.
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The mold McDonald's fits Forget the burgers for a moment. McDonald's is best understood as a real estate and royalty machine wearing a fast-food uniform. Roughly 95% of its restaurants are run by franchisees, which means McDonald's itself collects high-margin franchise fees and rent on prime real estate while its operators shoulder the day-to-day risk of running the restaurants. The result is capital-light, remarkably predictable cash flow, exactly the quality Buffett spent his career hunting for.
Layer on the rest of the checklist and the fit is almost eerie. McDonald's owns one of the most recognized brands on earth, a genuine competitive moat. It has pricing power built over decades. It generates enormous free cash flow. And it has raised its dividend -- which yields about 2.8% -- for nearly 50 consecutive years. A wide moat, durable earnings, dependable and growing cash returns: This is the archetype of the kind of company Berkshire was built to own.
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The one that got away The history stings precisely because Buffett knew all this. At the end of 1996, Berkshire held about 30 million McDonald's shares, a 4.3% stake worth roughly $1.4 billion. Within two years, he had sold, and in his 1998 shareholder letter, he admitted the error in plain language, joking that shareholders would have been better off had he "regularly snuck off to the movies during market hours." That stake would be worth more than $10 billion today, before counting decades of dividends. It is a rare unforced error from the greatest investor of his era, and a reminder that even Buffett sometimes let a wonderful business go.
Image source: Getty Images.
Why Abel might change that Here is where the simple reasoning comes in. Abel has shown he is more willing than the famously price-sensitive Buffett to act decisively and pay a fair price for quality, as his recent moves into large, fully valued businesses suggest. Buying McDonald's would require no leap into unfamiliar territory, no wrestling with a business model he does not understand, which is what kept Buffett out of so many technology names. It is a company Berkshire knows well and already wishes it still owned. For a leader looking to put Berkshire's mountain of cash to work in proven, moat-protected businesses, repurchasing the one that got away is about as natural a move as it gets.
The caveat worth naming To be clear, this is a prediction, not a certainty, and the point is less about guessing Abel's next trade than recognizing what makes a stock Berkshire-worthy. McDonald's is not cheap and Berkshire may well find more compelling values elsewhere. Predictions about any single purchase are educated guesses at best.
Whether Abel actually pulls the trigger, McDonald's is the sort of business long-term investors can own with real confidence: a wide-moat, cash-gushing royalty and real estate operation that even Buffett wished he had never sold. That is the deeper lesson here. Instead of trying to predict Berkshire's next move, study the investing template it uses: durable brands, predictable cash flows, and pricing power, and McDonald's checks every box. If Greg Abel is hunting for Berkshire-worthy consumer businesses, this is the blueprint, and I would not be surprised to see Berkshire own it again.
Bank of Nova Scotia lessened its stake in shares of McDonald’s Corporation (NYSE:MCD – Free Report) by 16.3% during the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 315,125 shares of the fast-food giant’s stock after selling 61,530 shares during the quarter. Bank of Nova Scotia’s holdings in McDonald’s were worth $97,938,000 as of its most recent SEC filing.
Other institutional investors also recently modified their holdings of the company. Dickmeyer Boyce Financial Management Inc. acquired a new stake in shares of McDonald’s during the first quarter valued at about $843,000. Gibbs Wealth Management grew its holdings in shares of McDonald’s by 252.4% during the first quarter. Gibbs Wealth Management now owns 11,006 shares of the fast-food giant’s stock worth $3,421,000 after purchasing an additional 7,883 shares during the last quarter. Sei Investments Co. increased its stake in shares of McDonald’s by 20.0% in the first quarter. Sei Investments Co. now owns 222,061 shares of the fast-food giant’s stock valued at $69,006,000 after buying an additional 36,943 shares during the period. Davis R M Inc. increased its stake in shares of McDonald’s by 0.7% in the first quarter. Davis R M Inc. now owns 11,840 shares of the fast-food giant’s stock valued at $3,680,000 after buying an additional 84 shares during the period. Finally, Ascension Capital Advisors Inc. bought a new position in McDonald’s in the 1st quarter valued at approximately $373,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.
McDonald’s Price Performance Shares of McDonald’s stock opened at $262.70 on Friday. The business has a 50-day simple moving average of $276.23 and a 200 day simple moving average of $299.11. McDonald’s Corporation has a one year low of $260.96 and a one year high of $341.75. The firm has a market capitalization of $186.65 billion, a price-to-earnings ratio of 21.66, a PEG ratio of 2.83 and a beta of 0.41.
McDonald’s (NYSE:MCD – Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate 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 analyst estimates of $6.47 billion. During the same quarter in the prior year, the company earned $2.67 earnings per share. The company’s quarterly revenue was up 9.4% on a year-over-year basis. On average, sell-side analysts expect that McDonald’s Corporation will post 12.86 EPS for the current year.
McDonald’s Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.
Insiders Place Their Bets In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’s 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 completion of the transaction, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 8,348 shares of company stock worth $2,355,634. 0.26% of the stock is owned by company insiders.
Analyst Ratings Changes Several equities research analysts recently commented on the stock. Cfra upgraded shares of McDonald’s to a “buy” rating in a research report on Friday, May 8th. TD Cowen restated a “hold” rating on shares of McDonald’s in a research report on Friday, June 12th. Weiss Ratings downgraded shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Evercore set a $320.00 price target on shares of McDonald’s in a report on Thursday. Finally, BTIG Research reissued a “buy” rating and issued a $370.00 price objective on shares of McDonald’s in a research note on Thursday, May 7th. Fifteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $335.12.
Read Our Latest Research Report on McDonald’s
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 Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market 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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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 (MCD - Free Report) closed the most recent trading day at $263.91, moving -1.39% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 1.29%.
Shares of the world's biggest hamburger chain have depreciated by 0.91% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.33%, and the S&P 500's loss of 0.63%.
The investment community will be paying close attention to the earnings performance of McDonald's in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. The company is expected to report EPS of $3.32, up 4.08% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $7.14 billion, reflecting a 4.27% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.86 per share and revenue of $28.34 billion, which would represent changes of +5.41% and +5.42%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.51% fall in the Zacks Consensus EPS estimate. Right now, McDonald's possesses a Zacks Rank of #4 (Sell).
Looking at valuation, McDonald's is presently trading at a Forward P/E ratio of 20.81. This denotes a premium relative to the industry average Forward P/E of 20.47.
We can also see that MCD currently has a PEG ratio of 2.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.99 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 16% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
McDonald's stock price has crashed by over 20% in less than 5 months. For me, that's a very attractive buy-the-dip opportunity. MCD's scalable franchise model, robust free cash flow, and Dividend Aristocrat status underpin shareholder rewards and ongoing expansion.
SummaryMcDonald's has underperformed the market, declining 10% versus a 14% benchmark rally since my last coverage.Recent catalysts and compressed earnings multiples now make MCD attractive, prompting my rating upgrade from Hold to Buy.Top- and bottom-line growth has accelerated, with recent quarters suggesting a potential turnaround in business performance.Consistency in growth supports the case for multiple expansion, and I see the outlook for MCD as improved. Getty Images
Honestly, I've been bearish on McDonald's (MCD) for almost a year now. The last time I wrote a piece on it, I argued that it may appear to be an interesting opportunity, but I still thought that it was
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MCD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about McDonald's (MCD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
McDonald's currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 35 brokerage firms. An ABR of 2.00 indicates Buy.
Of the 35 recommendations that derive the current ABR, 17 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 48.6% and 2.9% of all recommendations.
Brokerage Recommendation Trends for MCD
Check price target & stock forecast for McDonald's here>>>
The ABR suggests buying McDonald's, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in MCD?Looking at the earnings estimate revisions for McDonald's, the Zacks Consensus Estimate for the current year has declined 0.5% over the past month to $12.86.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for McDonald's. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for McDonald's with a grain of salt.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MCD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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.
Further Reading Five stocks we like better than McDonald’s Why Abbott Laboratories Stock Is Suddenly Winning Back Wall Street Revving Up Returns: Big Banks Race Through the Rate Plateau Why Uber’s Biggest Deal Yet Could Unlock Its Next Growth Phase Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test Receive News & Ratings for McDonald's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for McDonald's and related companies with MarketBeat.com's FREE daily email newsletter.
Negativní sentiment se před koncem obchodní seance ještě více prohloubil. Může za to silný pokles technologického giganta Google, u kterého přišla zpráva, že je v několikaměsíčním zpoždění s vydáním nové vlajkové AI verze Geminy Pro 3.5. V prostředí velké konkurence to může mít neblahý efekt ztráty poptávky. Akcie Alphabet končí silnou ztrátou –4,43 %.
Nevalný výsledek zažil i čipový sektor, kde velkou váhu poklesu má na svědomí Micron -5,65 % či AMD -5,33 %.
Oproti tomu se dařilo defenzivním sektorům spotřebního zboží či služeb. McDonald přidal slušných +3,04 %, PepsiCo též +2,97 % a například kartová asociace Mastercard +3,04 %.
Ropa WTI stále mírně ztrácela -0,75 %. Negativní vývoj na burze tedy dnes nebyl ovlivněn negativní geopolitickou situací.
Index Dow Jones -0,2 % na 52553,62 b.
S&P 500 -0,51 % na 7533,89 b.
Nasdaq Composite -1,47 % na 25881,95 b.
Index S&P 500 -0,51 % na 7533,89 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Nezbytná spotřeba +2,9 % Komunikační služby -2,8 % Zdravotní péče +2,2 % Informační technologie -1,8 % Reality +2,1 % Zbytná spotřeba -0,3 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Abbott Laboratories (ABT) +11 % Sandisk Corp (SNDK) -13 % JB Hunt Transport Services (JBHT) +8,0 % Seagate Technology Holdings (STX) -10,0 % Fedex Freight Holding (FDXF) +7,5 % Corning (GLW) -9,2 % Erie Indemnity (ERIE) +7,5 % Western Digital Corp (WDC) -9,2 % Dexcom (DXCM) +7,2 % Marvell Technology (MRVL) -8,7 %
Jan Pazourek, Fio banka, a.s.
Americkým indexům se dnes nedaří. Po počáteční kladném otevření se v průběhu dne pomalu ale jistě sunou do záporných hodnot, momentálně s výjimkou Dow Jones, který je na kladné nule. Technologický sektor je i nadále tlačen vahou čipového sektoru, který nadále koriguje letošní růstovou rallye. V Americké společnosti se začíná objevovat napětí kolem sektoru umělé inteligence, přičemž se začíná mluvit o její regulaci. V obci v Michiganu se lidé postavili proti výstavbě datového centra za 16 mld. USD, který má být velkým společným projektem firem Oracle, Open AI, Related Digital, Blackstone a Walbridge. Investoři jsou tedy stále opatrní, co se týče budoucnosti tohoto sektoru.
Nejlépe se daří klasickým technologickým společnostem těžící z poskytování výpočetního výkonu, takzvaný hyperscaleři. Microsoft přidává +1,88 %. V čele poklesu v čipovém sektoru je opět Micron, který odepisuje -6,11 %. Podobně je na tom ARM -8,41 %.
Oproti nim se kapitál opět přelévá do defenzivních titulů. Zde excelují například McDonald +2,6 % či MasterCard +2,4 %. Daří se i realitnímu sektoru, kterému pomáhá vidina nadále se nezvyšujících úrokových sazeb. Lídr na tomto trhu Realty Income přidává slušné 3 %. Vici Properties pak +2,57 %. Opačný efekt to má na cenné kovy, kde zlato odepisuje -1,38 % a bojuje o udržení supportní úrovně 4000 USD.
Geopolitický vývoj v Hormuzském průlivu mírně ustrnul, nelepší se ale ani nehorší. Ropa WTI osciluje kolem nuly a nyní odepisuje -0,67 %.
Index Dow Jones +0,1 % na 52711,63 b.
S&P 500 -0,24 % na 7554,53 b.
Nasdaq Composite -0,84 % na 26048,65 b.
Index S&P 500 -0,24 % na 7554,53 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Nezbytná spotřeba +2,3 % Informační technologie -1,7 % Zdravotní péče +2 % Průmysl -0,2 % Reality +1,5 % Utility -0,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Abbott Laboratories (ABT) +11 % Corning (GLW) -10 % Erie Indemnity (ERIE) +9,5 % Sandisk Corp (SNDK) -10 % Cintas Corp (CTAS) +7,1 % Western Digital Corp (WDC) -9,9 % Ingersoll Rand (IR) +6,9 % Seagate Technology Holdings (STX) -8,6 % JB Hunt Transport Services (JBHT) +6,6 % Marvell Technology (MRVL) -8,4 %
Jan Pazourek, Fio banka, a.s.
McDonald's (MCD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this world's biggest hamburger chain have returned -6.7% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Retail - Restaurants industry, to which McDonald's belongs, has lost 2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
McDonald's is expected to post earnings of $3.33 per share for the current quarter, representing a year-over-year change of +4.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
For the current fiscal year, the consensus earnings estimate of $12.9 points to a change of +5.7% from the prior year. Over the last 30 days, this estimate has changed -0.2%.
For the next fiscal year, the consensus earnings estimate of $14.08 indicates a change of +9.2% from what McDonald's is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, McDonald's is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For McDonald's, the consensus sales estimate for the current quarter of $7.15 billion indicates a year-over-year change of +4.5%. For the current and next fiscal years, $28.36 billion and $29.96 billion estimates indicate +5.5% and +5.6% changes, respectively.
Last Reported Results and Surprise HistoryMcDonald's reported revenues of $6.52 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $2.83 for the same period compares with $2.67 a year ago.
Compared to the Zacks Consensus Estimate of $6.49 billion, the reported revenues represent a surprise of +0.49%. The EPS surprise was +3.28%.
Over the last four quarters, McDonald's surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
McDonald's is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about McDonald's. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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.
Choosing between growth potential and established stability is a classic investor dilemma. Today, we compare Krispy Kreme (DNUT 0.75%) and McDonald's (MCD 1.48%) to determine which food giant is the better buy.
Krispy Kreme is working to transform from a traditional doughnut shop into a global sweet-treat brand with high accessibility. McDonald's remains the world's leading fast-food chain, leveraging immense scale to maintain its market share. Both companies are navigating shifting consumer habits and supply chain pressures in the current economic environment.
The case for Krispy KremeKrispy Kreme operates a Hub and Spoke model, producing fresh doughnuts at larger shops and delivering them daily to thousands of grocery and retail locations. The company manages a critical distribution partnership with BakeMark USA, which handles supplies for most of North America. This strategy aims to maximize the brand's presence without the overhead of building full-service kitchens in every neighborhood.
In its 2025 fiscal year (FY), revenue reached $1.5 billion, representing a decline of 8.6% compared to the prior year. The company reported a net loss of $515.8 million during this period. The net margin, which reveals the percentage of revenue remaining after all costs, was -33.9%, reflecting a challenging year for the brand's bottom line among food stocks.
As of its December 2025 balance sheet, the debt-to-equity ratio was 2.2x. This ratio measures total debt against shareholder equity, suggesting the company relies significantly on borrowed funds. The current ratio, which compares short-term assets to short-term liabilities, was 0.4x. Free cash flow, or the cash left after capital projects, was negative $64 million. Note that stock-based compensation (SBC) represented 37.9% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for McDonald'sMcDonald's serves millions of customers daily across 114 countries, primarily through its network of over 45,000 restaurants. The business model leans heavily on franchisees, who operate the vast majority of these locations and pay royalties to the parent company. While its 70-year partnership with The Coca-Cola Company remains iconic, the company has recently explored new beverage options to keep its menu relevant.
For FY 2025, the company generated revenue of $26.9 billion, a growth of 3.7% over the previous year. Net income for the period was $8.6 billion. The net margin remained robust at 31.9%, indicating the company's ability to retain a significant portion of its sales as profit even while facing higher ingredient and labor costs.
On its December 2025 balance sheet, the debt-to-equity ratio was -30.6x, indicating that total liabilities exceed shareholder equity. This is due to the company’s strategy of prioritizing returns to investors, using profits to fund stock buybacks, which artificially reduces shareholder equity. The current ratio, which shows the ability to cover immediate debts, was 1.0x. McDonald's generated significant free cash flow of $7.2 billion in FY 2025. This cash provides the company with ample resources to fund dividends, buy back shares, or invest in new digital ordering technologies.
Risk profile comparisonKrispy Kreme faces risks from cybersecurity vulnerabilities, following recent data breaches that led to legal settlements. The company also deals with supply chain concentration, as it depends on a single vendor for its glaze flavoring and a primary distributor for North America. High financial leverage and a dependency on third-party franchisees to execute its capital-light strategy add further complexity. Competition from other beverage and snack providers like Starbucks remains a constant pressure on its growth goals.
McDonald's is currently managing litigation risks, including class-action lawsuits regarding food safety and product claims. The company is also under scrutiny for labor practices and regulatory compliance involving teenage employees in certain markets. Potential volatility in its long-term supply alliances, particularly if foundational partnerships shift, could disrupt operations. Furthermore, the company faces intense competition from rivals such as Restaurant Brands International, who are aggressively pursuing value-oriented customers.
Valuation comparisonMcDonald's appears more attractively valued on an earnings basis, while Krispy Kreme trades at a much lower multiple of its annual sales.
MetricKrispy KremeMcDonald'sSector BenchmarkForward P/E35.8x20.7x288.6xP/S ratio0.4x7.1xn/aSector benchmark uses the SPDR XLP sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Digging into Krispy Kreme and McDonald's reveals the better stock to buy is the latter. Krispy Kreme may look more attractive from a valuation perspective, given its much lower price-to-sales ratio, but there’s a reason why its sales multiple is so low.
Krispy Kreme had a partnership with McDonald's that ended in 2025, driving the donut company’s stock price down. Moreover, it amassed huge debt on its balance sheet. It exited its fiscal first quarter, ended March 29, with nearly $900 million in debt.
Krispy Kreme’s sales are in decline, since it decided to close unprofitable stores. This strategy helped it reduce costs, but it still resulted in a fiscal Q1 net loss of $22.7 million. The company is in turnaround mode as it works to strengthen its financial health.
McDonald's is a large, profitable business with rising sales. In the first quarter, it posted 9% year-over-year revenue growth to $6.5 billion. Its Q1 net income increased 6% year over year to nearly $2 billion. Given that McDonald's is the stronger operation, it’s a better investment than Krispy Kreme right now.
McDonald's (MCD - Free Report) ended the recent trading session at $268.94, demonstrating a -1.35% change from the preceding day's closing price. This change lagged the S&P 500's 0.38% gain on the day. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.9%.
Coming into today, shares of the world's biggest hamburger chain had lost 4.72% in the past month. In that same time, the Retail-Wholesale sector gained 0.77%, while the S&P 500 gained 1.27%.
The investment community will be closely monitoring the performance of McDonald's in its forthcoming earnings report. The company is scheduled to release its earnings on August 4, 2026. The company is expected to report EPS of $3.33, up 4.39% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $7.15 billion, indicating a 4.45% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.9 per share and a revenue of $28.38 billion, representing changes of +5.74% and +5.57%, respectively, from the prior year.
Any recent changes to analyst estimates for McDonald's should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.26% downward. Currently, McDonald's is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that McDonald's has a Forward P/E ratio of 21.14 right now. This expresses a premium compared to the average Forward P/E of 20.71 of its industry.
Investors should also note that MCD has a PEG ratio of 2.83 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.97.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 190, placing it within the bottom 23% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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.
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The retirement income math often starts in the wrong place. A retiree who wants $60,000 a year might divide that figure by a portfolio yield and assume the highest yield is the most efficient path: about $1.71 million at 3.5%, $857,000 at 7%, or $500,000 at 12%. On day one, the 12% portfolio looks like the winner. Over a 20-year retirement, that can be exactly backwards.
The better question is not which portfolio produces the biggest first check. It is which income stream has the best chance to grow, preserve purchasing power, and avoid forcing retirees to spend down principal when markets or credit conditions turn.
The Three Tiers, Priced in Capital A conservative income portfolio yielding 3% to 4% covers $60,000 with roughly $1.5 million to $2 million in invested capital. The holdings are familiar: broad dividend-growth equities, regulated utilities, blue-chip consumer staples, and high-grade corporate bonds. With the 10-year Treasury near 4.4% and the FDIC national average 12-month CD around 1.7%, the conservative tier sits between cash drag and equity risk, with the distinct feature that the income stream can rise over time.
A moderate tier yielding 5% to 7% drops the capital requirement to roughly $860,000 to $1.2 million. This is the world of covered-call equity funds, equity REITs, preferred shares, and high-dividend international ETFs. The check is fatter, but dividend growth stalls and total return frequently lags the broad market.
An aggressive tier yielding 8% to 14% reaches $60,000 with as little as $430,000 to $750,000. Mortgage REITs, business development companies, leveraged option-income funds, and high-yield bond funds populate this tier. Principal erosion is common, distributions get cut in stress, and inflation grinds through what looks like a generous payout.
Why the Smaller Paycheck Usually Wins Here is the part the calculators miss. Core PCE reached an index level of 130.082 in May 2026, and the core PCE inflation rate was 3.4% from a year earlier. The 2026 Social Security COLA was 2.8%. A leveraged fund yielding 12% is not automatically an inflation hedge; if its distribution stays flat at $60,000, that income loses purchasing power each year prices rise.
Compare that to the actual histories on file. Johnson & Johnson (NYSE: JNJ) now pays $1.34 per quarter, marking its 64th consecutive year of dividend increases. Procter & Gamble (NYSE: PG) raised its quarterly dividend to $1.0885 in 2026, its 70th consecutive annual increase. McDonald’s (NYSE: MCD) now pays $1.86 per quarter, for an annualized payout of $7.44 and a forward yield near 2.8%.
The growth-skewed names look even more dramatic. Microsoft (NASDAQ: MSFT) yields about 1% today but lifted its quarterly dividend from $0.08 in 2005 to $0.91 in 2026, while its 10-year total return was roughly 725%. Visa (NYSE: V) yields about 0.8%, and its quarterly dividend reached $0.67 in 2026; its 10-year price return was closer to 356% than 392%.
NextEra Energy splits the difference: a utility profile paired with company guidance to grow the dividend roughly 10% annually through 2026, then 6% annually from year-end 2026 through 2028. That is the kind of dividend-growth arithmetic a static high-yield fund cannot match unless its underlying capital base and distribution can hold up through a full market cycle.
That does not mean every dividend-growth stock is safe, or that low yield is automatically better than high yield. It means the starting yield is only one variable. Dividend growth, payout durability, balance-sheet strength, and total return determine whether the paycheck can keep up with retirement expenses.
Better Checks Before You Pick a Tier Price your real spending, not your salary. Per-capita disposable personal income was $69,007 in May 2026 in current dollars, but household spending needs vary widely. A smaller income target shrinks every capital requirement above; a larger one raises it just as quickly.
Compare 10-year total returns, not headline yields. A 3% payout that grows 8% annually roughly doubles in nine years; a 12% payout that never grows loses purchasing power whenever inflation is positive. Pull the math before you commit.
Stress-test the aggressive tier. If a fund’s distribution leans on options premium or leverage, model what happens when volatility collapses or credit spreads widen. The yield printed today is rarely the yield you keep through a full cycle. A Paycheck That Can Keep Moving The best retirement paycheck rarely arrives fully formed. It is built over time by matching today’s income need with tomorrow’s inflation risk. High yield can have a place, but the durable retirement paycheck usually comes from income that can survive stress, grow with time, and leave enough principal intact to keep paying through the next cycle.
Contact [email protected] for any questions or corrections.
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 (MCD - Free Report) ended the recent trading session at $278.25, demonstrating a -1.4% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
Heading into today, shares of the world's biggest hamburger chain had lost 0.01% over the past month, lagging the Retail-Wholesale sector's gain of 0.18% and the S&P 500's gain of 1.64%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company is expected to report EPS of $3.34, up 4.7% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $7.15 billion, showing a 4.53% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.93 per share and revenue of $28.42 billion, which would represent changes of +5.98% and +5.71%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. McDonald's is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, McDonald's is currently exchanging hands at a Forward P/E ratio of 21.83. This signifies a premium in comparison to the average Forward P/E of 20.29 for its industry.
Investors should also note that MCD has a PEG ratio of 2.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.95.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
BT21 X McDonald's Happy Meal Collaborations Arriving July 14
McDonald's
One of the most anticipated collaborations is coming to a McDonald’s Happy Meal near you. BTS’s LINE FRIENDS characters BT21 and McDonald’s have joined forces again (the last time was in 2023 in Asia) to bring the characters – KOYA (RM), RJ (Jin), SHOOKY (SUGA), MANG (j-hope), CHIMMY (Jimin), TATA (V), and SHOOKY (Jung Kook) – to you.
Starting July 14, BT21 Happy Meals will be available at participating McDonald’s restaurants for a limited time. BT21 will be IN SPACE. If you are unaware of the lore, Planet BT is where Prince TATA lives, but he wants to spread love across the world, which he does with his robot companion, VAN, as they travel to Earth and pick up new friends: KOYA, RJ, SHOOKY, MANG, CHIMMY, and COOKY. Together, they become the most influential pop-culture sensation the galaxy has ever known – just like their creators.
Last week, McDonald’s Instagram teased a video of the BT21 collaboration, fresh off last year’s Happy Meal collaboration with BTS’s other character IP, TinyTan. Like the TinyTan toys, they will be sold exclusively with Happy Meals.
BT21
LINE FRIENDS
What do we know?There will be 10 unique toys – at random – in each Happy Meal. The BT21 characters will be on a ring clip like a bag chain – a very popular accessory at the moment. It looks like they may be in individual spaceships. Since VAN is the only character who does not require a spaceship, VAN will be flying freely.
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But there are eight characters in BT21? Who or what are the other two?Though it has not yet been revealed to the media at the time of posting, there will be individuals from KOYA, RJ, SHOOKY, CHIMMY, TATA, COOKY, and VAN. The other two options may be unit-based bag chains.
Is there anything else?Like the TinyTan Happy Meals, there will be an experience on HappyMeal.com where fans can scan the QR code on their Happy Meal box to unlock some cool activities, including creating different music tracks and bringing the BT21 characters to life.
Will there be a special event?McDonald’s x TinyTan threw an event in Los Angeles last time to celebrate the Happy Meals collaboration, but nothing has been confirmed yet, including the date or location.
When does it end?There’s no end date, but if they run out, that may be it, since it’s for a limited time.
BT21 X McDonald’s Happy Meal Collaboration begins on July 14 at a participating McDonald’s near you.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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.
Today's Change
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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.
Fresh off last year’s BTS collaboration with their TinyTan figurines in Happy Meals, McDonald’s is partnering with their other character affiliate, BT21. McDonald’s Official Instagram posted a teaser featuring the characters’ shadows zooming through the universe, past stars that form a Happy Meal. In the sneak peek, it is revealed that BT21 x McDonald’s Happy Meals will launch on July 14. Like the TinyTan toys, they will be sold exclusively with Happy Meals.
Developed by LINE FRIENDS, BT21 is a set of creature characters representing each BTS member, created by the members themselves. Since its launch in 2017, the products have been popular, selling out at launch, and have been expanded to other companies, such as Converse and Olive Young.
The popular brand previously worked with McDonald’s in 2023, selling its characters standing atop chicken nugget containers, exclusively in Asia. The toy sold out quickly.
BT21
LINE FRIENDS
What are the BT21 Figures? Who do they represent?BT21, whose name derives from BTS and the 21st Century, was created by each BTS member to represent them, giving them a name, look, and personality. There is even a lore. The brand has since launched into products, games, foods, ads, and even web series. BTS documented their process for creating their characters and continues to actively develop them.
Play Puzzles & Games on Forbes
KOYA - RMKOYA is a blue koala who is brilliant, sleepy, and thoughtful, with removable ears. RM thought koalas were cute. He painted KOYA’s nose purple to represent love (and ARMY). When KOYA is shocked, his ears fall off, but he can put them back on.
RJ - JinJin has been drawing alpacas for years, especially since he’s been referenced as looking like one. So he decided to embrace it and make his character one with a red/orange scarf. He named it “RJ” because “AL” from ALpaca, but in Korean, it sounds like “R,” and the letter of his first name is J. RJ, like his father, enjoys eating.
Fun fact: Jin has displayed his giant RJ statue at home.
SHOOKY - SUGAInspired by Jung Kook’s drawing, SUGA gave his character the name SHOOKY. The brown, round cookie has arms and legs, one eyebrow thicker than the other, and one buck tooth. The character is known to be mischievous.
MANG - j-hopeInitially, MANG was a purple-bodied character with a blue horse mask over its face and a pink heart-shaped nose. j-hope wanted to explore the mystery of a character hiding their true self from the world. MANG is, like his father, a superb dancer. The name “Mang” translates to pony and is the latter part of the word Hope in Korean. In 2023, MANG revealed its face, showing the world it was a chipmunk. His smile is exactly the same as j-hope’s.
CHIMMY - JiminCHIMMY is a white puppy with black ears, wearing a yellow hoodie. Jimin wanted the character to represent the entire group because they were all like puppies – playful and active. CHIMMY’s face also resembles Jimin’s when they first debuted.
TATA - VV likes drawing cute and unique characters, and had the idea of TATA in his head for some time before creating it. He created the character as an alien with a heart-shaped head, yellow lips, and a blue body dotted with yellow. The heart-shaped head represents the love he sends out into space. V gave the character its name because the sound was cute.
COOKY - Jung KookJung Kook, whose fans have associated him with a bunny, sketched a rabbit as his character, naming it after him and his nickname, “Kookie,” but with a different spelling. COOKY is a pink rabbit with the right ear bent down, with one eyebrow thicker than the other. He is very strong and likes to work out.
VAN - ARMYIn addition to their own characters, BTS wanted to create a character that represented their fanbase - ARMY. Created by TATA, VAN is a robot with grey and white stripes on both sides of its body and XO eyes. VAN is sworn to protect the characters – just like ARMY.
What is the BT21 Lore?According to LINE FRIENDS, “Hailing from Planet BT, Prince TATA dreams to spread love across the galaxy. Deciding that destiny is at hand, TATA summons guardian robot VAN to prepare for an interstellar journey to Earth. Shortly after arrival, the Prince concludes that the most effective means to win over the hearts of earthlings is to become a super, no... something much more ambitious. A UNIVERSTAR. Realizing that a collective effort is crucial, TATA & VAN scout for like-minded hopefuls to share in the dream. Soon they discover 6- KOYA, RJ, SHOOKY, MANG, CHIMMY, and COOKY- to become what will be known as the most influential pop-culture sensation the galaxy has ever witnessed. BT21.”
What can we expect from this collaboration with McDonald's?More to come on this BT21 x McDonald’s collaboration SOON!
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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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about McDonald's (MCD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
McDonald's currently has an average brokerage recommendation (ABR) of 1.97, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 36 brokerage firms. An ABR of 1.97 approximates between Strong Buy and Buy.
Of the 36 recommendations that derive the current ABR, 18 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 50% and 2.8% of all recommendations.
Brokerage Recommendation Trends for MCD
Check price target & stock forecast for McDonald's here>>>
The ABR suggests buying McDonald's, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in MCD?In terms of earnings estimate revisions for McDonald's, the Zacks Consensus Estimate for the current year has declined 0% over the past month to $12.93.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for McDonald's. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for McDonald's with a grain of salt.
Need investment income? From a distance, it looks like income seekers are just out of luck right now. The S&P 500's trailing dividend yield currently stands at a record low of just over 1%.
Dig deeper, though. The index's overall yield is only this low because a small handful of very large, non-dividend-paying tech companies' stocks now account for a massive share of the S&P 500's market value. There are still plenty of index stocks making solid, sizable dividend payments. Fast-food restaurant chain McDonald's (MCD +1.02%) is one of them.
Image source: Getty Images.
Not a permanent headwind In light of the stock's 20% price pullback from its late-February peak, most investors clearly don't agree with this call. But understandably so. The current economic backdrop (and inflation in particular) does not favor this company's product and price points.
As CEO Christopher Kempczinski commented on the global economy during May's Q1 earnings conference call, "It's certainly not improving, and it may be getting a little bit worse." To this end, last quarter's same-store sales growth of 3.8% was a relative disappointment, as lower-margin "value" items have become an increasingly important part of its menu.
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Now look at the bigger picture. This is nothing McDonald's hasn't seen and survived before. Given the cyclical nature of economic headwinds, the restaurant chain is likely to come out of this one at least as strong as it was when it began, making the stock's slide since early March a great long-term buying opportunity.
Resilience worth owning It's still not a growth stock by any means. McDonald's remains a slow-and-steady value name. That's just the nature of the well-saturated fast-food restaurant business.
Even so, this ticker's recent weakness has made it an even more compelling income stock, boosting its forward-looking dividend yield to 2.8%. And that's based on a dividend that's now been raised for 49 consecutive years, underscoring the durability of this company's business.
James Brumley 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.
Restaurant Brands International: Navigating Seasonal Revenue SwingsRestaurant Brands International (QSR +1.52%) operates and globally franchises a diverse portfolio of quick-service chains, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs.
It reached a court-ordered mediation impasse regarding litigation from its Carrols Restaurant Group acquisition in March of 2026, and it posted 15% net income margin for the quarter ended March 31, 2026.
McDonald's: Maintaining Global Revenue ScaleMcDonald's (MCD +1.97%) operates and licenses a vast worldwide network of fast-food restaurants that serve a broad menu of hamburgers, chicken items, and breakfast selections.
It recorded a pre-tax restructuring charge related to internal organizational changes, and it reported 30% net income margin for the quarter ended March 31, 2026.
Why Revenue Matters for Retail InvestorsRevenue shows investors the total amount of money a business brings in before deducting any expenses. This metric helps investors measure a business's overall size, market footprint, and long-term trajectory.
Quarter (Period End)Restaurant Brands International RevenueMcDonald's RevenueQ2 2024 (June 2024)$2.1 billion$6.5 billionQ3 2024 (Sept. 2024)$2.3 billion$6.9 billionQ4 2024 (Dec. 2024)$2.3 billion$6.4 billionQ1 2025 (March 2025)$2.1 billion$6.0 billionQ2 2025 (June 2025)$2.4 billion$6.8 billionQ3 2025 (Sept. 2025)$2.4 billion$7.1 billionQ4 2025 (Dec. 2025)$2.5 billion$7.0 billionQ1 2026 (March 2026)$2.3 billion$6.5 billionData source: Company filings. Data as of June 23, 2026.
Foolish TakeThe revenue trends between McDonald's and Restaurant Brands International (RBI) reveal both are experiencing year-over-year growth. As an iconic brand, McDonald's enjoys far larger sales, yet its stock slid in June to a 52-week low of $264.53 as investors became concerned persistent inflation and rising labor costs will eventually force menu price increases that drive away customers.
Wall Street’s sentiment towards RBI is rosier for a few reasons. The company’s Burger King brand enjoyed strong year-over-year comparable store sales growth of 6% in the first quarter of 2026. This means existing stores are producing greater revenue through repeat customer visits and price increases. McDonald's saw a 4% comparable store sales increase in Q1.
In addition, RBI’s international division is expanding rapidly with outstanding 11% year-over-year sales growth in Q1. While RBI has a long way to go before it gets close to the level of revenue produced by McDonald's, its successes with Burger King and international expansion drove shares to a 52-week high of $81.96 in May.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends Restaurant Brands International and 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.
McDonald's (MCD - Free Report) ended the recent trading session at $269.76, demonstrating a +1.97% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.24%.
Shares of the world's biggest hamburger chain witnessed a loss of 4.83% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 7.87%, and underperforming the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of McDonald's in its upcoming release. The company's earnings per share (EPS) are projected to be $3.34, reflecting a 4.7% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.15 billion, indicating a 4.53% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.93 per share and a revenue of $28.42 billion, indicating changes of +5.98% and +5.71%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for McDonald's. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. McDonald's currently has a Zacks Rank of #4 (Sell).
Investors should also note McDonald's's current valuation metrics, including its Forward P/E ratio of 20.47. This signifies a premium in comparison to the average Forward P/E of 19.56 for its industry.
One should further note that MCD currently holds a PEG ratio of 2.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MCD's industry had an average PEG ratio of 1.93 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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
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 3.30.
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 increase of 6%. The EPS estimates for 2026 have remained unchanged 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 #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald's (MCD - Free Report) ended the recent trading session at $264.54, demonstrating a -3.41% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.46%.
The world's biggest hamburger chain's shares have seen a decrease of 2.51% over the last month, surpassing the Retail-Wholesale sector's loss of 5.64% and falling behind the S&P 500's loss of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of McDonald's in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $3.34, marking a 4.7% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.15 billion, up 4.53% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.93 per share and revenue of $28.42 billion, which would represent changes of +5.98% and +5.71%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% decrease. At present, McDonald's boasts a Zacks Rank of #4 (Sell).
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 21.19. This denotes a premium relative to the industry average Forward P/E of 19.32.
It's also important to note that MCD currently trades at a PEG ratio of 2.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 1.91 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
McDonald's (MCD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this world's biggest hamburger chain have returned -2.5%, compared to the Zacks S&P 500 composite's -1.4% change. During this period, the Zacks Retail - Restaurants industry, which McDonald's falls in, has lost 0.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
McDonald's is expected to post earnings of $3.34 per share for the current quarter, representing a year-over-year change of +4.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $12.93 points to a change of +6% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $14.12 indicates a change of +9.2% from what McDonald's is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for McDonald's.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of McDonald's, the consensus sales estimate of $7.15 billion for the current quarter points to a year-over-year change of +4.5%. The $28.42 billion and $30.08 billion estimates for the current and next fiscal years indicate changes of +5.7% and +5.8%, respectively.
Last Reported Results and Surprise HistoryMcDonald's reported revenues of $6.52 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $2.83 for the same period compares with $2.67 a year ago.
Compared to the Zacks Consensus Estimate of $6.49 billion, the reported revenues represent a surprise of +0.49%. The EPS surprise was +3.28%.
Over the last four quarters, McDonald's surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
McDonald's is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about McDonald's. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
In the latest close session, McDonald's (MCD - Free Report) was down 1.43% at $283.82. This change lagged the S&P 500's daily loss of 1.22%. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.35%.
Shares of the world's biggest hamburger chain witnessed a gain of 2.54% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 2.86%, and the S&P 500's gain of 1.56%.
Investors will be eagerly watching for the performance of McDonald's in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.34, reflecting a 4.7% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.15 billion, indicating a 4.53% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.93 per share and revenue of $28.42 billion. These totals would mark changes of +5.98% and +5.71%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for McDonald's. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. As of now, McDonald's holds a Zacks Rank of #4 (Sell).
With respect to valuation, McDonald's is currently being traded at a Forward P/E ratio of 22.27. This expresses a premium compared to the average Forward P/E of 19.48 of its industry.
Meanwhile, MCD's PEG ratio is currently 2.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.84.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
McDonald's demonstrates resilience amid macro headwinds, outperforming chain restaurant peers despite a ~15% YTD decline from its peak. I reiterate my buy rating as MCD offers compelling value at 21.9x FY26 P/E and 20.0x FY27 P/E, now at the lower end of peer valuations. Dividend strength is evident, with a 2.6% yield and a decade of consistent growth, positioning MCD as a viable alternative to cash.
Key Takeaways McDonald's global comparable sales rose 3.8% in Q1, with all operating segments posting positive growth.McDonald's U.S. comps increased 3.9%, primarily driven by positive check growth despite macro pressures.McDonald's Australia posted mid- to high-single-digit comp growth and another quarter of share gains. McDonald’s Corporation (MCD - Free Report) continues to lean on a three-pronged strategy centered on value leadership, breakthrough marketing and menu innovation to drive customer engagement in a challenging consumer environment. The company's first-quarter 2026 results suggest that this approach is resonating with customers and supporting growth across key markets.
During the quarter, global comparable sales increased 3.8%, with all operating segments posting positive growth. Comparable sales rose 3.9% in both the United States and International Operated Markets, while International Developmental Licensed Markets grew 3.4%. Management noted that U.S. performance was primarily driven by positive check growth, indicating that consumers continued to spend despite macroeconomic pressures. A key component of McDonald's strategy is its commitment to value offerings. The company continues to promote everyday low-price menu items, meal bundles, limited-time deals and personalized offers through its mobile app.
The payoff is especially visible in International Operated Markets, most notably Australia. During the quarter, Australia paired its McSmart Meal and Loose Change Menu value platforms with a nostalgia-driven Friends TV show activation. The market also benefited from full-margin beef and chicken limited-time offers and a successful beverage test. This “value plus brand activation” approach helped Australia deliver mid- to high-single-digit comparable sales growth and its third consecutive quarter of market share gains.
McDonald’s is applying similar brand-building efforts across regions. The company highlighted campaigns tied to KPop Demon Hunters with Netflix, The Super Mario Galaxy Movie Happy Meal and the Friends promotion across multiple international markets. These activations are designed to create cultural relevance while reinforcing the brand’s value proposition.
Given broad-based comparable sales growth, rising Systemwide sales and continued market share gains, McDonald’s value-and-marketing formula appears to be paying off. Continued execution across value, marketing, menu innovation and digital engagement will be key to sustaining momentum through 2026.
How Rivals SBUX and YUM Build MomentumMcDonald’s is not alone in using a mix of value offerings and brand-building initiatives to drive traffic and customer engagement. Peers, such as Starbucks Corporation (SBUX - Free Report) and Yum! Brands, Inc. (YUM - Free Report) , are pursuing similar strategies, combining product innovation, marketing relevance and loyalty engagement to strengthen customer connections.
Starbucks has been gaining traction through its “Back to Starbucks” turnaround strategy, which blends menu innovation, broad-based marketing and personalized loyalty engagement. In first-quarter fiscal 2026, global comparable sales rose 4%, while U.S. transaction growth turned positive for the first time in eight quarters. The company’s active Starbucks Rewards membership reached a record 35.5 million users. Management highlighted that stronger brand engagement, seasonal product launches and culturally relevant marketing campaigns helped improve customer traffic and loyalty participation without relying heavily on discounting.
Yum! Brands is also leveraging the combination of value, innovation and cultural relevance to drive momentum, particularly at Taco Bell. In first-quarter 2026, Taco Bell U.S. reported 8% same-store sales growth, supported by transaction gains and the successful Luxe Value Menu launch. The brand complemented its value strategy with high-profile marketing efforts, including its Live Más LIVE event, which showcased more than 20 menu innovations and generated significantly higher social media engagement than the prior year. Yum! Brands believes that pairing value with innovation and brand relevance is helping Taco Bell expand customer occasions, deepen engagement and gain market share.
MCD’s Price Performance, Valuation & EstimatesMcDonald’s shares have lost 2% in the past year, outperforming the Zacks Retail - Restaurants industry, but underperforming the broader Retail and Wholesale sector and the S&P 500 index.
MCD 1-Year Price Performance
Image Source: Zacks Investment Research
In terms of its forward 12-month price-to-earnings ratio, MCD is trading at 21.06, down from the industry’s 23.06.
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 6% and 9.2%, respectively.
MCD Estimate Trend
Image Source: Zacks Investment Research
SummaryMcDonald’s (MCD) earns a soft buy rating after a sustained sell-off and successful pivot back to value-focused offerings. MCD’s valuation remains rich, with a TTM GAAP PE of 23.39 and levered FCF growth of 20% required to justify current prices. Recent value initiatives, including $5 dinner meals and under $3 menu items, have reignited sales growth despite economic headwinds. While not cheap, MCD’s strong brand and franchise model position it to navigate both lower- and higher-income consumer shifts. tupungato/iStock Editorial via Getty Images
McDonald’s (MCD) is among those companies I like to keep an eye on simply to have a feel for the economy. In recent years, McDonald’s decision to raise prices, eventually resulting in stalled and shrinking sales, provided
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McDonald's (MCD +0.28%) has excellent fundamentals, and its stock offers investors an above-average yield. Yet, despite the market's uncertainty these days and many investors seeking safe dividend stocks, McDonald's hasn't been rising in value. In fact, the top restaurant stock is down around 11% this year.
The stock should arguably be in much higher demand. Instead, it's trading near its 52-week low and approaching a two-year low. What's wrong with the dividend stock, and could this be a good time to add McDonald's to your portfolio?
Image source: Getty Images.
Are investors bracing for worse results? McDonald's has demonstrated strong resilience over the years. It's been able to adapt to changing consumer trends, and even increasing prices hasn't drastically hurt its business. While there has been some volatility in recent quarters, it has averaged a growth rate of over 5% in the past three years. It has also been improving of late, with sales rising by 9% in its most recent quarter.
MCD Revenue (Quarterly YoY Growth) data by YCharts
Investors may, however, be growing concerned about what lies ahead, as consumer sentiment has deteriorated and recently hit a record low. Although McDonald's business has been solid in the long run, in the short term, it may encounter challenges, and investors may be hesitant to buy the stock because of that uncertainty.
Plus, while the stock offers a 2.7% dividend, which is technically higher than the S&P 500 average of 1.1%, it may not be high enough to truly convince dividend investors it's worth buying for the payout, when there are still many other higher-yielding options out there.
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Could McDonald's be an underrated stock to buy right now? McDonald's typically isn't a stock you buy if you're after a top growth stock. It's the kind of modestly growing business you do want to invest in, however, if you want some stability and a growing dividend. McDonald's is a low-volatility stock that has increased its dividend for decades. While its yield may seem modest right now, it's likely to rise over the years, giving investors some incentive to just buy and hold.
The stock also trades at 23 times its trailing earnings, which isn't too expensive a valuation, and it's around what the average S&P 500 stock trades at as well. In five years, McDonald's stock has risen by around 17%, and while I don't expect the next five years to be a whole lot better for investors, this is primarily a stock you'll want to buy if you're looking for reliable, growing dividend income. If that's what you're after, then McDonald's can be a terrific buy right now. But if you're a growth-oriented investor, there may be better options to consider, with far more upside than McDonald's.
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.
On June 22, 2026, McDonald's Corp (MCD) shares fell 3.0% to $270.10, continuing a downward trend that has seen the stock drop 10.5% year-to-date. Over the last
BEIJING--(BUSINESS WIRE)--Syngenta Group China today announced plans to partner with McDonald’s China and McCain China in building a more resilient and sustainable potato supply chain in China, so consumers can enjoy fries of the highest quality.
The three parties today signed a Memorandum of Understanding (MoU) to transform local potato farming, supply and processing through scaling sustainable practices and smart technologies, at the 4th China International Supply Chain Expo.
Within the pilot framework, Syngenta Group China will explore a science-based potato planting approach that addresses soil health, customized crop stewardship, precision fertigation, integrated pest management, intelligent field monitoring and sustainable agricultural practices. The initiative draws on the company’s full suite of agronomic inputs, digital farming solutions, and its nationwide network of MAP (Modern Agriculture Platform) technical service centers.
“Agriculture today faces mounting pressure from yield and resource constraints, requiring a shift from volume expansion to resilience building,” said SU Fu, President of Syngenta Group China. “Syngenta aims to bring innovative technologies and modern farming services to potato farmers, safeguarding their incomes and reinforcing the entire value chain. It's an example of our commitment to bring breakthroughs for farmers in every field, to deliver higher yields with lower impact.”
“McDonald’s dedication to consistent taste and quality begins with potato cultivation right from the farm,” said Jim SHI, Chief Supply Chain Officer of McDonald’s China. “By leveraging Syngenta’s input expertise and sustainable solutions, we strive to bring premium fries to Chinese consumers sustainably and reliably.”
“McCain and McDonald’s have long partnered in China based on our shared value of quality and long-termism,” said LIU Linlin, Managing Director of McCain China. “This tripartite MOU marks our collective pledge to further advance the high-quality development for China’s potato sector -- sustainable agricultural technologies, shared gains for farmers and partners, plus digital traceability and quality insurance for fries.”
About Syngenta Group
Syngenta Group is one of the world’s biggest agricultural innovation companies, employing over 50,000 people in more than 90 countries. Syngenta Group is focused on developing technologies and farming practices that empower farmers, so they can make the transformation required to feed the world’s population while preserving our planet. Syngenta Group’s bold scientific discoveries deliver better benefits for farmers and society on a bigger scale than ever before. Guided by its Sustainability Goal, Syngenta Group supports farmers to grow healthier plants in healthier soil with a higher yield.
Syngenta Group, which is registered in Shanghai, China, and has its management headquarters in Switzerland, draws strength from its four business units: Syngenta Crop Protection, headquartered in Switzerland; Syngenta Seeds, headquartered in the United States; ADAMA®, headquartered in Israel; and Syngenta Group China.
For Syngenta Group photos and videos, please visit the Syngenta Group Media Library.
To find out more about how our innovation is empowering farmers around the world, read our stories and follow-us on social media.
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This document may contain forward-looking statements, which can be identified by terminology such as “expect,” “would,” “will,” “potential,” “plans,” “prospects,” “estimated,” “aiming,” “on track” and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. For Syngenta Group, such risks and uncertainties include, amongst others, risks relating to legal proceedings, regulatory approvals, new product development, increasing competition, customer credit risk, general economic and market conditions, refinancing risk, interest rate fluctuations and access to capital markets, compliance and remediation, evolving environmental and sustainability regulations, changes in agricultural policies or subsidy regimes, intellectual property rights, implementation of organizational changes, impairment of intangible assets, consumer perceptions of genetically modified crops and organisms or crop protection chemicals, climatic variations, fluctuations in exchange rates and/or grain prices, supply chain disruptions, (geo)political risks, trade restrictions, sanctions, and export controls, natural disasters, and breaches of data security or other disruptions of information technology. Syngenta Group assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about McDonald's (MCD - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
McDonald's currently has an average brokerage recommendation (ABR) of 1.95, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 37 brokerage firms. An ABR of 1.95 approximates between Strong Buy and Buy.
Of the 37 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 51.4% and 2.7% of all recommendations.
Brokerage Recommendation Trends for MCD
Check price target & stock forecast for McDonald's here>>>
While the ABR calls for buying McDonald's, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is MCD Worth Investing In?Looking at the earnings estimate revisions for McDonald's, the Zacks Consensus Estimate for the current year has declined 0.2% over the past month to $12.93.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for McDonald's. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for McDonald's with a grain of salt.
Americans have spent nearly $450 extra per household on rising energy costs during the Iran war, according to an analysis shared exclusively with CNBC's Steve Liesman.
The average household has shelled out $447.19 for additional fuel-related expenses since the conflict began on Feb. 28, data from Moody's Analytics found. That's cumulatively cost American consumers nearly $60 billion as gas prices and airline fares have surged.
Moody's data puts a dollar amount on a portion of the economic pain Americans are feeling as the war reaches its three-month mark. Higher energy costs can force consumers to raid their savings and lean more on debt to cover expenses.
"Unless the war ends soon, financially pressed consumers will have no option but to turn more cautious in their spending, threatening the already soft economy," said Mark Zandi, Moody's chief economist.
If prices stay at current levels, the average household could take a hit of almost $2,000 at the one-year mark of the war, Zandi said.
Roughly half of the increased energy spending so far comes from higher gasoline prices. The average unleaded gallon in the U.S. cost about $4.39 on Friday, up more than 47% since the start of March, according to AAA.
Pricier diesel, which is used in vehicles like delivery trucks and boats, has resulted in more than $20 billion in additional expenses for consumers. The price of diesel has similarly jumped roughly 47% since the beginning of March to around $5.52 a gallon, per AAA.
Consumers have given up nearly $10 billion as a result of rising costs for jet fuel. Airline fares climbed more than 20% in April compared with 12 months ago, federal government inflation data shows.
That nearly $450 impact more than erased the boost of $384 per household from bigger tax returns this year under President Donald Trump's "big, beautiful bill," according to Moody's. Most of the benefits from larger tax cuts have already been exhausted, Zandi said.
Goldman Sachs said it expects higher energy prices to "erode" consumers' spending power through the rest of 2026. It should specifically hamper lower-income households that spend a larger percentage of budgets on food and energy, the bank said.
Costco saw "record-breaking" gas volumes at the end of its fiscal quarter as drivers sought out its lower-priced fuel, the wholesaler said Thursday. McDonald's CEO Chris Kempczinski warned this month that consumer spending — specifically among lower-income cohorts — "may be getting a little bit worse" as energy prices pinch pocketbooks.
Turning to savings, debtConsumer spending rose 0.5% from March to April, according to government figures released Thursday. But other data points show that isn't necessarily coming from discretionary funds.
Income growth came in flat for April, missing the consensus forecast among economists for a 0.4% increase.
The personal savings rate fell to 2.6% in April, one of the lowest readings since the global financial crisis. It's far off highs above 31% seen in 2020, signaling that consumers have continued to spend through pandemic stimulus and rainy-day stashes amid inflationary pressures.
American credit card debt came in at $1.25 trillion in the first quarter, up close to 6% from a year ago, the New York Federal Reserve said this month. That's near the all-time record set at the end of 2025.
"Consumers are increasingly facing an income squeeze, which is forcing them to use savings, credit and wealth to sustain their spending patterns," said Gregory Daco, chief economist at EY-Parthenon. "What we're seeing is, essentially, the use of savings to offset weak income growth."
— CNBC's Steve Liesman and Betsy Spring contributed to this report.
Musk’s Offer Is OnIt all started when DogeDesigner—a widely followed X handle that regularly posts about Musk and Dogecoin—dropped an AI video of the Tesla CEO and Shiba Inu dog sharing fries and a Happy Meal inside a McDonald’s restaurant.
DogeDesigner reminded the X audience of Musk's promise, and the world’s richest person acknowledged it with "True."
Happy Meal is a kids’ meal package offered by McDonald’s that contains a main item, a side item and a drink. The restaurant chain didn’t immediately return Benzinga’s request for comment.
DOGE’s Decline Since Musk’s PostThe post got the Dogecoin community hyped with memes and demands for a live stream, but DOGE just hasn't been the same since Musk first made the offer. As shown in the table, the memecoin has plunged 30% in value.
CryptocurrencyPrice (Recorded on Jan. 25, 2022)Price (Recorded at 3:00 a.m. ET)Gains +/-Dogecoin$0.143$0.09991-30.13%Musk’s Complicated Views On CryptoMusk's views on cryptocurrency have been a topic of discussion for a while. He deemed most cryptocurrencies as “scams” last month.
Last year, he compared investing in meme coins to playing in a casino, suggesting that expecting to win in either case is foolish. He also warned against pouring life savings into such assets.
However, he occasionally revitalizes community interest with a casual comment about Dogecoin. In February, he said that his space technology company, SpaceX, will likely put the memecoin "on the moon" next year.
Photo courtesy: Shutterstock.com
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Key Takeaways MCD posted 3.8% global comparable sales growth and gained share across nearly all top markets.MCD expanded U.S. value offerings with sub-$3 items and a $4 Breakfast Meal Deal.MCD reported share gains in the U.K., Germany and Australia through localized value programs. McDonald’s Corporation (MCD - Free Report) appears to be strengthening its position in the fast-food value battle as consumers remain cautious about spending. During its first-quarter 2026 earnings call, management emphasized that value has become the foundation of the company’s growth strategy, helping it to attract customers despite ongoing economic uncertainty.
The company delivered solid first-quarter results, with global comparable sales rising 3.8% and market share gains across nearly all of its top markets. Management credited this performance to a combination of affordable menu offerings, effective marketing campaigns and targeted menu innovation. McDonald’s leadership reiterated that it does not intend to lose its competitive edge on affordability.
In the United States, McDonald’s expanded its value platform by introducing an everyday menu featuring items priced below $3 and a $4 Breakfast Meal Deal. These additions complement existing meal bundles and are designed to appeal to budget-conscious consumers. The company noted that earlier value initiatives successfully improved perceptions of affordability while helping regain traffic from lower-income customers who had reduced spending amid inflationary pressures.
McDonald’s value-focused approach is not limited to the U.S. International markets such as the United Kingdom, Germany and Australia also reported strong performance, supported by affordable meal bundles and localized value programs. These markets delivered share gains even as quick-service restaurant traffic weakened in many regions.
While management acknowledged that rising fuel costs and economic uncertainty continue to pressure lower-income consumers, McDonald’s believes its combination of value, marketing and menu innovation positions it well to outperform competitors. The company’s ability to gain market share in a challenging environment suggests that its value strategy is resonating. For now, McDonald’s appears to be winning the value wars by giving customers affordable options without sacrificing brand relevance or growth momentum.
How Rivals Are Responding to the Value-Focused ConsumerMcDonald’s is not the only restaurant chain competing for budget-conscious customers. Two major rivals, Restaurant Brands International's (QSR - Free Report) Burger King and Wendy’s Company (WEN - Free Report) , have also intensified their value offerings as consumers become more selective with discretionary spending.
Burger King has leaned heavily on limited-time value meals and digital promotions to drive traffic. The chain has paired affordability initiatives with menu upgrades and restaurant remodels to improve customer perception. While these efforts have supported traffic trends, McDonald’s broader scale and more established value platform give it a competitive advantage in reaching a wider customer base.
Meanwhile, Wendy’s has focused on its value menu and app-based discounts to attract cost-conscious diners. The company continues to promote low-priced meal bundles while balancing profitability through premium menu innovation. However, Wendy’s smaller international footprint limits its ability to replicate value-driven success across multiple markets.
Compared with both competitors, McDonald’s benefits from a globally coordinated strategy that combines affordable pricing, strong marketing campaigns and menu innovation. This integrated approach has helped the company gain market share in several key regions, positioning it favorably in the ongoing battle for value-seeking consumers.
MCD’s Price Performance, Valuation & EstimatesMcDonald’s shares have declined 10.7% in the past year, underperforming the Zacks Retail - Restaurants industry, the broader Retail and Wholesale sector and the S&P 500 index.
MCD 1-Year Price Performance
Image Source: Zacks Investment Research
In terms of its forward 12-month price-to-earnings ratio, MCD is trading at 20.8, down from the industry’s 22.43.
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 6% and 9.2%, 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.
McDonald's on Monday unveiled its latest global growth strategy to help the fast-food giant become customers' first choice as it faces new rivals and consumer spending stretched by high gas prices.
A new restaurant design, better-tasting food and drinks, consumer-led innovation and improved customer service are the four cornerstones of the new plan, which the company calls "McDonald's > NEXT."
Executives made the announcement at McDonald's biennial Worldwide Convention for franchisees, held this year in Las Vegas. The chain released its last global strategy, known as "Accelerating the Arches," in November 2020 as its sales bounced back from the pandemic.
The growth plan comes as restaurants compete for a smaller pool of customers, and a new crop of chains, including Raising Cane's and 7 Brew Drive Thru Coffee, threaten McDonald's sales. So far, McDonald's, the largest U.S. restaurant chain by revenue, has managed to hold onto its dominant spot, with four straight quarters of same-store sales growth.
"Traditional competitors are upgrading their menus, and a new wave of specialists are emerging and redefining taste and quality across chicken, beef, and beverages," McDonald's CEO Chris Kempczinski wrote in a memo to the chain's global system.
"In a world where every restaurant is a swipe away, there is no such thing as second place," he added.
To become diners' first option, McDonald's plans to focus on menu innovation that elevates taste and quality, like improvements to its McCrispy chicken line. For years, the chain has sought to improve and expand its chicken offerings as rivals like Chick-fil-A stole its customers. Plus, Americans have been eating more chicken than beef for the past 16 years, due to health concerns tied to the consumption of red meat and higher beef prices, according to U.S. Department of Agriculture data.
"We're raising the bar for our menu by improving quality and consistency at scale and innovating in spaces where we see growth potential and know matter to our customers, like chicken, beef and beverages," said Jill McDonald, the chain's global chief restaurant experience officer.
The chain also wants to "co-create" with customers by listening more closely to what consumers want and how they interact with brands. Recent examples include the popularity of its viral Grimace milkshake and its collaboration with "A Minecraft Movie."
The new restaurant design will give McDonald's a recognizable look, but it should also ease employee headaches and improve kitchen operations. The company said back-end systems will be more intuitive and connected, for example.
McDonald's is also testing automated order taking at five U.S. restaurants using a system it named ARCHY to let employees focus on other tasks. More broadly, the chain also said it wants to "redefine hospitality" by improving customer service and training employees to interact more with diners.
In September, the company will hold an investor day that will include more details about the strategy and relevant financial targets.
McDonald’s is set to announce a new corporate strategy at a worldwide gathering for franchisees and suppliers in Las Vegas, the company said in a statement on Monday.
The strategy, which the burger giant is calling “McDonald’s>NEXT,” focuses on increasing automation, raising standards for hospitality, leaning on social media for marketing, and making its sandwiches and fries taste better.
McDonald’s, the world’s largest fast food chain by sales, said details, including financial figures would be released at an investor event in September.
The strategy, which the burger giant is calling “McDonald’s>NEXT,” focuses on increasing automation, raising standards for hospitality, leaning on social media for marketing, and making its sandwiches and fries taste better. AP “While perceptions of our value have rebounded in most markets, it’s a reminder that we need to earn, and re-earn, each and every visit,” said CEO Chris Kempczinski in a company-wide memo. Chris Kempczinski/Instagram The broad strategy’s announcement comes as McDonald’s tries to hold on to lower-income consumers who have cut back on restaurant visits after years of higher prices. The company has leaned on value meals, loyalty program offers and limited-time menu items to drive traffic.
The share of US customers who said the chain offers good value fell from 55% to roughly 40% between 2020 and 2024, and has largely stayed there since, according to surveys from UBS Evidence Labs shared with Reuters last month.
“While perceptions of our value have rebounded in most markets, it’s a reminder that we need to earn, and re-earn, each and every visit,” said CEO Chris Kempczinski in a company-wide memo shared with Reuters.
With the new strategy, the company aims to make its restaurants “easier to run and more enjoyable to visit,” McDonald’s chief restaurant experience executive Jill McDonald said in a statement.
McDonald’s previous corporate strategy, announced in 2020, was called “Accelerating the Arches” and focused in part on digital sales and increased marketing.
