Zacks Research Brokers Cut Earnings Estimates for McDonald’s

McDonald’s Co. (NYSE:MCD) – Equities research analysts at Zacks Research lowered their Q1 2025 earnings per share estimates for McDonald’s in a research note issued to investors on Monday, February 24th. Zacks Research analyst H. Ray now forecasts that the fast-food giant will earn $2.65 per share for the quarter, down from their prior estimate of $2.70. The consensus estimate for McDonald’s’ current full-year earnings is $12.25 per share. Zacks Research also issued estimates for McDonald’s’ Q2 2025 earnings at $3.07 EPS, Q3 2025 earnings at $3.29 EPS, Q4 2025 earnings at $3.09 EPS, FY2025 earnings at $12.09 EPS, Q1 2026 earnings at $2.88 EPS, Q2 2026 earnings at $3.40 EPS, Q3 2026 earnings at $3.58 EPS, Q4 2026 earnings at $3.31 EPS, FY2026 earnings at $13.18 EPS and FY2027 earnings at $14.51 EPS.

Several other brokerages also recently weighed in on MCD. Bank of America increased their price target on McDonald’s from $312.00 to $316.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 11th. KeyCorp raised their target price on McDonald’s from $320.00 to $335.00 and gave the stock an “overweight” rating in a report on Tuesday, February 11th. Robert W. Baird lifted their price target on McDonald’s from $305.00 to $310.00 and gave the company a “neutral” rating in a research report on Tuesday, February 11th. Wedbush upped their price objective on McDonald’s from $320.00 to $330.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 11th. Finally, Citigroup lifted their target price on shares of McDonald’s from $336.00 to $360.00 and gave the company a “buy” rating in a report on Tuesday, February 11th. Ten analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. According to data from MarketBeat, McDonald’s currently has an average rating of “Moderate Buy” and an average price target of $323.61.

McDonald’s Price Performance

NYSE:MCD opened at $310.84 on Wednesday. The company’s fifty day moving average price is $293.10 and its 200-day moving average price is $294.65. McDonald’s has a 1-year low of $243.53 and a 1-year high of $317.90. The firm has a market capitalization of $222.75 billion, a P/E ratio of 27.29, a PEG ratio of 3.10 and a beta of 0.74.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Monday, February 10th. The fast-food giant reported $2.83 earnings per share for the quarter, hitting the consensus estimate of $2.83. McDonald’s had a net margin of 31.73% and a negative return on equity of 181.63%.

Hedge Funds Weigh In On McDonald’s

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MCD. Legacy Investment Solutions LLC acquired a new position in shares of McDonald’s during the 3rd quarter valued at about $25,000. Atala Financial Inc purchased a new position in McDonald’s during the fourth quarter worth about $26,000. Comprehensive Financial Planning Inc. PA purchased a new position in McDonald’s during the fourth quarter worth about $27,000. Collier Financial acquired a new position in McDonald’s in the 4th quarter valued at about $29,000. Finally, Pinney & Scofield Inc. purchased a new stake in shares of McDonald’s in the 4th quarter valued at approximately $29,000. Institutional investors and hedge funds own 70.29% of the company’s stock.

Insider Transactions at McDonald’s

In other news, EVP Marion K. Gross sold 1,499 shares of the business’s stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $290.95, for a total transaction of $436,134.05. Following the transaction, the executive vice president now directly owns 1,560 shares in the company, valued at $453,882. The trade was a 49.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 939 shares of the company’s stock in a transaction that occurred on Monday, February 24th. The shares were sold at an average price of $305.00, for a total value of $286,395.00. Following the completion of the sale, the insider now owns 13,978 shares of the company’s stock, valued at $4,263,290. This trade represents a 6.29 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 32,504 shares of company stock valued at $9,897,305 over the last 90 days. 0.23% of the stock is currently owned by corporate insiders.

McDonald’s Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Monday, March 3rd will be paid a dividend of $1.77 per share. The ex-dividend date of this dividend is Monday, March 3rd. This represents a $7.08 annualized dividend and a yield of 2.28%. McDonald’s’s dividend payout ratio (DPR) is presently 62.16%.

McDonald’s Company Profile

McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.