Erste Group Bank Increases Earnings Estimates for McDonald’s

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

Other research analysts have also recently issued research reports about the company. Truist Financial increased their price objective on McDonald’s from $356.00 to $370.00 and gave the stock a “buy” rating in a research report on Thursday, February 12th. Jefferies Financial Group lifted their target price on McDonald’s from $360.00 to $375.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Oppenheimer raised McDonald’s from a “market perform” rating to an “outperform” rating and set a $355.00 target price for the company in a report on Tuesday, January 6th. Robert W. Baird set a $335.00 target price on McDonald’s in a report on Thursday, February 12th. Finally, Citigroup lifted their target price on McDonald’s from $371.00 to $375.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Seventeen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, McDonald’s has an average rating of “Hold” and a consensus target price of $339.69.

McDonald’s Trading Up 0.9%

MCD opened at $307.48 on Wednesday. McDonald’s has a 1-year low of $283.47 and a 1-year high of $341.75. The stock’s fifty day simple moving average is $321.49 and its 200 day simple moving average is $311.66. The stock has a market cap of $218.44 billion, a PE ratio of 25.73, a price-to-earnings-growth ratio of 2.73 and a beta of 0.53.

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Evergreen Private Wealth LLC grew its position in McDonald’s by 162.5% in the third quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant’s stock valued at $26,000 after acquiring an additional 52 shares during the last quarter. Your Advocates Ltd. LLP bought a new position in McDonald’s in the fourth quarter valued at about $27,000. Park Place Capital Corp grew its position in McDonald’s by 95.7% in the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after acquiring an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. bought a new position in McDonald’s in the fourth quarter valued at about $29,000. Finally, Abound Financial LLC bought a new position in McDonald’s in the fourth quarter valued at about $30,000. Institutional investors own 70.29% of the company’s stock.

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 2,626 shares of the firm’s stock in a transaction 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 transaction, the insider owned 5,398 shares in the company, valued at approximately $1,755,699.50. This trade represents a 32.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jonathan Banner sold 6,201 shares of the firm’s stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $333.29, for a total value of $2,066,731.29. Following the completion of the transaction, the executive vice president owned 2,291 shares in the company, valued at $763,567.39. The trade was a 73.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 71,657 shares of company stock worth $23,722,204 over the last three months. Company insiders own 0.25% of the company’s stock.

McDonald’s Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were given a $1.86 dividend. The ex-dividend date was Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.4%. McDonald’s’s dividend payout ratio (DPR) is presently 62.26%.

McDonald’s News Summary

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

• Positive Sentiment: Management says digital channels (app, delivery, kiosks, loyalty) now represent a meaningful share of systemwide sales, supporting higher engagement and longer‑term margin/leverage potential. Will McDonald’s Digital Sales Mix Drive Its Next Phase of Growth?
• Positive Sentiment: McDonald’s expanded its value strategy (new Under‑$3 items, $4 breakfast, $5–$6 bundles / McValue 2.0) to protect traffic as consumers tighten budgets — a defensive move likely to support same‑store sales in a weaker consumer environment. McDonald’s is adding value meals as food prices continue to rise
• Positive Sentiment: Analyst support: Erste Group nudged up its FY2027 EPS estimate and maintains a Buy rating, which can boost investor confidence versus consensus estimates. (Research note cited by market coverage.)
• Neutral Sentiment: Pop‑culture promos (KPop “Demon Hunters” meal) are generating engagement and secondary revenue from collectible card resale markets — these campaigns raise traffic and earned media but have mixed and hard‑to‑quantify sales impact. Cards from McDonald’s KPop Demon Hunters meal sell online. Is yours rare?
• Neutral Sentiment: Extensive media coverage of the CEO’s viral taste‑test video and his subsequent responses has kept McDonald’s in the headlines; this generates short‑term noise but so far limited evidence of sustainable traffic impact. The Economic Divide Behind That McDonald’s CEO Viral Video
• Negative Sentiment: Ongoing PR friction from the viral CEO clip and follow‑up coverage could dent brand sentiment among some customers and create earnings risk if the story lingers. McDonald’s CEO Breaks Silence With Response to Viral Backlash
• Negative Sentiment: A rival franchisee has filed Chapter 11 (65 restaurants at risk), highlighting margin and credit stress in parts of the quick‑service ecosystem that could pressure local franchise dynamics. McDonald’s rival franchisee files Chapter 11, 65 restaurants at risk
• Negative Sentiment: Recent intraday weakness and a small pullback in the prior session show investors are watching short‑term headlines; that volatility could persist until the market fully digests the value push and digital acceleration. McDonald’s (MCD) Stock Drops Despite Market Gains: Important Facts to Note

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.