McDonald’s (NYSE:MCD) Stock Price Down 1.6% – Here’s Why

McDonald’s Corporation (NYSE:MCD) shares were down 1.6% on Friday. The company traded as low as $246.67 and last traded at $248.4870. Approximately 4,150,677 shares changed hands during trading, a decline of 3% from the average daily volume of 4,279,616 shares. The stock had previously closed at $252.63.

McDonald’s News Summary

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

• Positive Sentiment: McDonald’s remains a long-term income candidate after raising its dividend and joining the elite group of “Dividend Kings.” The sell-off has lifted the yield to roughly 3%–3.2%, potentially increasing its appeal to value and dividend investors. McDonald’s Is Crowned a Dividend King
• Positive Sentiment: Menu innovation, including the return of the McRib, regional barbecue offerings and new chicken launches, could help revive U.S. comparable sales and customer traffic. Limited-time products and promotional experiences are intended to generate additional consumer interest. Can MCD’s Menu Innovation Offset Slower U.S. Comparable Sales Growth?
• Neutral Sentiment: Analysts expect McDonald’s to report third-quarter results next month, with forecasts calling for a single-digit earnings increase. The upcoming report will be important for determining whether promotions and menu changes are offsetting weaker traffic. McDonald’s Q3 2026 Earnings: What to Expect
• Negative Sentiment: Erste Group Bank trimmed its FY2027 earnings-per-share forecast to $13.78 from $13.80. Although the reduction is small, it reinforces concerns that growth estimates may be edging lower.
• Negative Sentiment: McDonald’s is facing persistent business headwinds, including weaker customer traffic and pressure to balance affordability with profitability. Taco Bell’s rollout of a $2 item highlights intensifying value competition in fast food. Taco Bell Rolls Out $2 Item
• Negative Sentiment: A federal lawsuit alleges that McDonald’s used artificial intelligence in price-fixing activity. The company disputes the claims and says the lawsuit contains inaccuracies, but the allegations create potential legal, reputational and regulatory risk. McDonald’s AI-Fueled Price-Fixing Lawsuit

Wall Street Analyst Weigh In

MCD has been the subject of a number of research analyst reports. BTIG Research reduced their price objective on shares of McDonald’s from $350.00 to $295.00 and set a “buy” rating for the company in a research report on Thursday, September 24th. DZ Bank reissued a “buy” rating on shares of McDonald’s in a report on Thursday, September 24th. Gordon Haskett cut their price target on shares of McDonald’s from $315.00 to $285.00 and set a “buy” rating on the stock in a report on Thursday, September 24th. Rothschild & Co Redburn lowered their price objective on McDonald’s from $306.00 to $285.00 in a research report on Wednesday, August 26th. Finally, Evercore reduced their price target on shares of McDonald’s from $320.00 to $300.00 and set an “outperform” rating for the company in a report on Thursday, September 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $295.64.

McDonald’s Trading Down 1.6%

The company’s 50-day simple moving average is $249.91 and its 200 day simple moving average is $270.11. The stock has a market cap of $175.84 billion, a P/E ratio of 20.19, a PEG ratio of 2.76 and a beta of 0.44.

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

McDonald’s Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a $1.93 dividend. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a yield of 3.1%. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. GKV Capital Management Co. Inc. bought a new position in McDonald’s in the 1st quarter valued at $33,000. Merkkuri Wealth Advisors LLC purchased a new position in shares of McDonald’s during the first quarter worth approximately $43,000. Burkett Financial Services LLC raised its position in McDonald’s by 2,312.5% in the 3rd quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock worth $45,000 after purchasing an additional 185 shares during the period. POM Investment Strategies LLC lifted its stake in shares of McDonald’s by 46.2% in the 2nd 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 last quarter. Finally, Westfuller Advisors LLC raised its stake in shares of McDonald’s by 140.0% during the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock valued at $49,000 after acquiring an additional 105 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

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.