McDonald’s (NYSE:MCD) Shares Climb 1.6% – Here’s Why

McDonald’s Corporation (NYSE:MCD) shares were up 1.6% during mid-day trading on Tuesday. The company traded as high as $247.29 and last traded at $246.4710. Approximately 5,429,495 shares changed hands during mid-day trading, an increase of 27% from the average daily volume of 4,272,530 shares. The stock had previously closed at $242.67.

McDonald’s News Summary

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

• Positive Sentiment: Several analysts and commentators view McDonald’s valuation as increasingly attractive. The stock trades near 20 times earnings—below its historical valuation range—and offers a roughly 3.2% dividend yield, potentially providing upside if earnings recover and the valuation partially rebounds. Is The Market Underpricing McDonald’s Stock? McDonald’s Is 29% Below Its 52-Week High and Yields 3.2%
• Positive Sentiment: Menu innovation—including chicken launches and limited-time offerings such as the McRib—could help attract customers, broaden demand and improve U.S. sales. Seasonal Disney Villains Boo Buckets and other collectibles may also support promotional traffic, although their financial impact is likely modest. Can MCD’s Menu Innovation Offset Slower U.S. Comparable Sales Growth?
• Neutral Sentiment: Plans for two additional restaurants in the Fort Worth suburbs indicate continued unit expansion, but individual openings are unlikely to materially change near-term earnings expectations. Two McDonald’s Restaurants Planned for North Fort Worth Suburbs
• Negative Sentiment: The main overhang is weak U.S. traffic and slower comparable-sales growth. Coverage questions whether new menu items can offset cautious consumers and declining visits, increasing pressure on McDonald’s to prove that promotions can generate sustainable—not just temporary—demand. Can MCD’s Menu Innovation Offset Slower U.S. Comparable Sales Growth?
• Negative Sentiment: McDonald’s has significantly underperformed the broader market over the past year, while weakness across restaurant stocks following a bearish Chipotle analyst action added pressure to the sector. Investors appear to be balancing MCD’s defensive dividend and valuation against uncertain near-term sales momentum. Chipotle Falls as TD Cowen Downgrades

Analyst Ratings Changes

A number of brokerages have commented on MCD. Argus reduced their target price on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a report on Wednesday, August 26th. Daiwa Securities Group decreased their price target on shares of McDonald’s from $309.00 to $293.00 and set an “outperform” rating on the stock in a research report on Thursday, August 6th. HC Wainwright set a $250.00 price target on shares of McDonald’s in a research note on Friday, September 25th. Citigroup cut their price objective on shares of McDonald’s from $305.00 to $295.00 and set a “buy” rating for the company in a research report on Tuesday. Finally, Gordon Haskett cut their price objective on shares of McDonald’s from $315.00 to $285.00 and set a “buy” rating for the company in a research report on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, McDonald’s presently has a consensus rating of “Moderate Buy” and an average price target of $295.64.

McDonald’s Stock Performance

The stock has a market capitalization of $174.16 billion, a PE ratio of 19.99, a PEG ratio of 2.76 and a beta of 0.44. The stock has a 50-day moving average price of $250.31 and a two-hundred day moving average price of $270.49.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. The company had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. The firm’s revenue was up 3.7% on a year-over-year basis. During the same period in the previous year, the company posted $3.19 EPS. As a group, equities analysts predict that McDonald’s Corporation will post 12.84 earnings per share for the current year.

McDonald’s Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a dividend of $1.93 per share. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Tuesday, December 1st. McDonald’s’s payout ratio is presently 60.44%.

Institutional Trading of McDonald’s

A number of hedge funds and other institutional investors have recently modified their holdings of MCD. GKV Capital Management Co. Inc. bought a new position in McDonald’s in the 1st quarter worth $33,000. Merkkuri Wealth Advisors LLC purchased a new stake in McDonald’s in the 1st quarter worth $43,000. Financial Life Planners bought a new stake in McDonald’s during the first quarter valued at about $51,000. Vermillion Wealth Management Inc. raised its holdings in McDonald’s by 30.5% during the first quarter. Vermillion Wealth Management Inc. now owns 171 shares of the fast-food giant’s stock valued at $53,000 after acquiring an additional 40 shares during the period. Finally, POM Investment Strategies LLC raised its holdings in McDonald’s by 46.2% during the second quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock valued at $47,000 after acquiring an additional 55 shares during the period. 70.29% of the stock is owned by hedge funds and other institutional investors.

About McDonald’s

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.