McDonald’s (NYSE:MCD) Sets New 1-Year High Following Earnings Beat

McDonald’s Corporation (NYSE:MCD)’s share price reached a new 52-week high during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $333.38 and last traded at $323.7420, with a volume of 1125923 shares trading hands. The stock had previously closed at $323.21.

The fast-food giant reported $3.12 EPS for the quarter, topping the consensus estimate of $3.05 by $0.07. McDonald’s had a net margin of 31.85% and a negative return on equity of 313.07%. The company had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.81 billion. During the same period in the previous year, the firm posted $2.83 earnings per share. The company’s revenue for the quarter was up 9.7% compared to the same quarter last year.

McDonald’s Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 17th. Shareholders of record on Tuesday, March 3rd will be given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, March 3rd. McDonald’s’s dividend payout ratio is presently 63.48%.

McDonald’s News Summary

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

• Positive Sentiment: Q4 beat — McDonald’s reported stronger-than-expected fourth-quarter results (revenue up ~9.7% YoY; EPS topped consensus), a primary bullish catalyst for the stock. McDonald’s Q4 Earnings & Revenues Beat Estimates, Rise Y/Y
• Positive Sentiment: Value-driven traffic recovery — Management says Extra Value Meals, $5 meal bundles and promotions lifted U.S. traffic and drove the fastest comparable-sales growth in over two years, while loyalty engagement climbed strongly. McDONALD’S REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
• Positive Sentiment: Analyst upgrades/targets rising — Multiple firms have raised price targets and reiterated Buy/Overweight ratings after the beat, supporting upside momentum. MCD Price Target Raised at Truist (example)
• Neutral Sentiment: Marketing/pop-culture buzz — Stunts like free McNugget “caviar” kits and the seasonal Shamrock Shake generated headlines and short-term traffic spikes; good for brand momentum but limited long-term earnings impact. McDonald’s launches McNugget caviar kits
• Negative Sentiment: Franchisee tensions — Some franchisees are resisting centralized pricing/value directives; uneven local execution or disputes could limit consistent margin or traffic benefits. Value is the key to McDonald’s growth plans, but it’s creating tensions with some franchisees
• Negative Sentiment: Insider selling — A senior U.S. executive disclosed a ~2,626-share sale (~$854k), which some investors view as profit-taking after the earnings pop. SEC Form 4: Joseph M. Erlinger sale

Wall Street Analyst Weigh In

MCD has been the topic of a number of analyst reports. Oppenheimer raised McDonald’s from a “market perform” rating to an “outperform” rating and set a $355.00 price objective on the stock in a report on Tuesday, January 6th. Royal Bank Of Canada increased their price target on McDonald’s from $320.00 to $330.00 and gave the company a “sector perform” rating in a report on Thursday. Mizuho boosted their price objective on shares of McDonald’s from $300.00 to $325.00 and gave the stock a “neutral” rating in a research note on Friday, February 6th. Citigroup raised their target price on shares of McDonald’s from $371.00 to $375.00 and gave the company a “buy” rating in a research note on Thursday. Finally, BTIG Research boosted their target price on shares of McDonald’s from $360.00 to $370.00 and gave the stock a “buy” rating in a research report on Thursday. Fourteen analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $335.63.

Insider Activity at McDonald’s

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,486 shares of the company’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $320.00, for a total value of $795,520.00. Following the completion of the transaction, the executive vice president owned 6,268 shares of the company’s stock, valued at $2,005,760. This represents a 28.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Joseph M. Erlinger sold 2,626 shares of McDonald’s stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $325.25, for a total value of $854,106.50. Following the sale, the insider directly owned 5,398 shares in the company, valued at $1,755,699.50. The trade was a 32.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 31,439 shares of company stock worth $9,772,464. 0.25% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Federated Hermes Inc. boosted its position in shares of McDonald’s by 84.1% during the 2nd quarter. Federated Hermes Inc. now owns 141,775 shares of the fast-food giant’s stock valued at $41,422,000 after acquiring an additional 64,757 shares during the last quarter. Global X Japan Co. Ltd. lifted its position in McDonald’s by 236.7% during the third quarter. Global X Japan Co. Ltd. now owns 6,502 shares of the fast-food giant’s stock valued at $1,976,000 after purchasing an additional 4,571 shares during the last quarter. D.A. Davidson & CO. grew its stake in McDonald’s by 2.7% in the 3rd quarter. D.A. Davidson & CO. now owns 143,492 shares of the fast-food giant’s stock worth $43,606,000 after buying an additional 3,774 shares in the last quarter. Choreo LLC increased its holdings in shares of McDonald’s by 1.7% in the 2nd quarter. Choreo LLC now owns 58,515 shares of the fast-food giant’s stock worth $17,096,000 after buying an additional 954 shares during the last quarter. Finally, Regent Peak Wealth Advisors LLC purchased a new stake in shares of McDonald’s during the 3rd quarter valued at $1,120,000. 70.29% of the stock is owned by institutional investors.

McDonald’s Trading Up 2.7%

The business’s fifty day moving average price is $312.69 and its 200-day moving average price is $308.07. The company has a market capitalization of $236.28 billion, a P/E ratio of 27.76, a P/E/G ratio of 3.26 and a beta of 0.52.

McDonald’s Company Profile

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.