Are Wall Street Analysts Bullish on McDonald's Stock?
McDonald's Corporation (MCD), headquartered in Chicago, Illinois,operates and franchises fast food chains under the McDonald's brand. Valued at $193.1 billion by market cap, MCD is the world's largest fast food restaurant chain that offers various food products and soft drinks, and non-alcoholic beverages. With a global presence in over 40,000 locations in more than 100 countries, approximately 95% of its restaurants are owned and operated by independent local business owners.
Shares of this fast-food giant have underperformed the broader market over the past year. MCD has declined 10.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 10.8%. In 2026, MCD stock is down 10.5%, compared to the SPX’s 10.9% rise on a YTD basis.
Narrowing the focus, MCD’s underperformance is also apparent compared to State Street Consumer Discretionary Select Sector SPDR ETF (XLY). The exchange-traded fund has gained about 1.3% over the past year. Moreover, the ETF’s marginal returns on a YTD basis outshine the stock’s low double-digit losses over the same time frame
MCD’s underperformance was weighed down by softer traffic trends and macroeconomic pressures, particularly in Europe, though performance recovered late in the period. Management attributed this rebound to disciplined cost control, refranchising 175 restaurants, and targeted digital promotions and value menu tests across over 4,000 U.S. locations that successfully reversed earlier traffic declines. Furthermore, specialty beverages like the Red Bull Dragonberry Energizer helped boost average checks, while future growth initiatives focus on nationwide entry-level value bundles, hand-breaded chicken offerings, and restaurant remodels.
On Nov. 4, MCD shares soared 6.5% after reporting its Q3 results. Its adjusted EPS of $3.57 surpassed Wall Street expectations of $3.36. The company’s revenue was $7.2 billion, missing Wall Street forecasts of $7.3 billion.
For the current fiscal year, ending in December, analysts expect MCD’s EPS to grow 5.8% to $12.91 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 36 analysts covering MCD stock, the consensus is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” 17 “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago, with 17 analysts suggesting a “Strong Buy.”
On Nov. 5, Evercore Inc. (EVR) analyst David Palmer maintained a “Buy” rating on MCD and set a price target of $300, implying a potential upside of 9.6% from current levels.
The mean price target of $306.12 represents an 11.9% premium to MCD’s current price levels. The Street-high price target of $390 suggests a notable upside potential of 42.5%.
On the date of publication, Neha Panjwani did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.