Q1 Earnings Estimate for McDonald’s Issued By Zacks Research

McDonald’s Corporation (NYSE:MCD) – Stock analysts at Zacks Research lowered their Q1 2026 EPS estimates for McDonald’s in a research report issued on Wednesday, February 25th. Zacks Research analyst Team now expects that the fast-food giant will earn $2.78 per share for the quarter, down from their previous estimate of $2.84. The consensus estimate for McDonald’s’ current full-year earnings is $12.25 per share. Zacks Research also issued estimates for McDonald’s’ Q2 2026 earnings at $3.39 EPS, Q4 2026 earnings at $3.41 EPS, Q1 2027 earnings at $3.05 EPS, Q2 2027 earnings at $3.68 EPS, Q3 2027 earnings at $3.81 EPS, Q4 2027 earnings at $3.92 EPS, FY2027 earnings at $14.46 EPS and FY2028 earnings at $16.05 EPS.

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

Several other analysts have also commented on the company. Royal Bank Of Canada increased their price objective on McDonald’s from $320.00 to $330.00 and gave the company a “sector perform” rating in a report on Thursday, February 12th. BTIG Research upped their target price on McDonald’s from $360.00 to $370.00 and gave the company a “buy” rating in a research report on Thursday, February 12th. Guggenheim lowered their price target on McDonald’s from $325.00 to $320.00 and set a “neutral” rating for the company in a report on Friday, February 13th. UBS Group upped their price objective on shares of McDonald’s from $350.00 to $365.00 and gave the company a “buy” rating in a report on Thursday, February 12th. Finally, Piper Sandler lifted their target price on shares of McDonald’s from $323.00 to $325.00 and gave the stock a “neutral” rating in a research note on Thursday, February 12th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $337.57.

McDonald’s Stock Up 1.9%

Shares of MCD opened at $340.85 on Friday. The company has a 50 day moving average of $316.42 and a two-hundred day moving average of $310.19. McDonald’s has a twelve month low of $283.47 and a twelve month high of $341.35. The company has a market cap of $242.14 billion, a price-to-earnings ratio of 28.52, a price-to-earnings-growth ratio of 2.97 and a beta of 0.52.

Hedge Funds Weigh In On McDonald’s

Several institutional investors and hedge funds have recently modified their holdings of the stock. Instrumental Wealth LLC acquired a new stake in McDonald’s during the fourth quarter worth about $205,000. Strategic Investment Solutions Inc. IL boosted its position in McDonald’s by 26.0% in the 4th quarter. Strategic Investment Solutions Inc. IL now owns 3,914 shares of the fast-food giant’s stock worth $1,196,000 after purchasing an additional 808 shares in the last quarter. OakTrust Wealth Advisors LLC acquired a new stake in shares of McDonald’s during the 4th quarter worth approximately $208,000. Anchor Investment Management LLC increased its holdings in shares of McDonald’s by 1.4% during the 4th quarter. Anchor Investment Management LLC now owns 14,832 shares of the fast-food giant’s stock valued at $4,533,000 after purchasing an additional 204 shares in the last quarter. Finally, TD Capital Management LLC increased its holdings in shares of McDonald’s by 33.3% during the 4th quarter. TD Capital Management LLC now owns 204 shares of the fast-food giant’s stock valued at $62,000 after purchasing an additional 51 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

Insider Activity at McDonald’s

In other McDonald’s news, CEO Christopher J. Kempczinski sold 26,277 shares of McDonald’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $331.35, for a total transaction of $8,706,883.95. Following the completion of the sale, the chief executive officer directly owned 22,900 shares in the company, valued at approximately $7,587,915. The trade was a 53.43% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, EVP Manuel Jm Steijaert sold 6,567 shares of the firm’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $305.50, for a total transaction of $2,006,218.50. Following the transaction, the executive vice president directly owned 4,606 shares of the company’s stock, valued at approximately $1,407,133. This trade represents a 58.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 78,084 shares of company stock worth $25,661,722 in the last ninety days. 0.25% of the stock is owned by company insiders.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd will be issued a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.2%. The ex-dividend date is Tuesday, March 3rd. McDonald’s’s dividend payout ratio is 62.26%.

McDonald’s News Roundup

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

• Positive Sentiment: Street support: JPMorgan raised its price target to $325 and remains constructive, giving buy‑side validation and likely contributing to bullish flows. Article Title
• Positive Sentiment: Promotions and LTOs driving traffic: The U.S. rollout of the “Big Arch” supersized burger and national $1 McMuffin promotions are generating buzz and should lift short‑term visits and digital engagement, supporting revenue and comp trends. Article Title Article Title
• Positive Sentiment: Loyalty and digital momentum: Coverage highlights McDonald’s rewards and app-driven promotions are improving visit frequency and ticket, a structural tailwind for margins and recurring sales. Article Title
• Positive Sentiment: Dividend income visibility: Management confirmed a $1.86 quarterly dividend (ex‑div March 3, payable March 17), supporting demand from income‑oriented investors. Article Title
• Neutral Sentiment: Mixed analyst estimate moves from Zacks: Zacks updated numerous quarterly and FY2027/28 EPS estimates — lifting some full‑year/quarter forecasts while trimming others. The net effect is ambiguous for near‑term sentiment but shows analysts are actively re‑modeling. (Zacks coverage also discusses value strategy sustaining traffic.) Article Title
• Neutral Sentiment: Product novelty tests: International menu items and limited‑time offers can boost visits but their incremental margin impact is uncertain; useful for short‑term traffic but not a proven long‑term earnings catalyst. Article Title
• Negative Sentiment: Insider selling: Executives disclosed sales (including a recent sale by Joe Erlinger), which can spook some investors even if part of routine diversification. Article Title
• Negative Sentiment: Regional ad controversy: A Ramadan ad in Germany showing empty boxes drew criticism — a reputational headline that may pressure local sentiment but is unlikely to materially affect global fundamentals. Article Title

About McDonald’s

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.