MCD

Valued at $188.2 billion by market cap, McDonald's Corporation (MCD) is the world's largest quick-service restaurant (QSR) company, serving tens of millions of customers daily through a global network of more than 40,000 restaurants across over 100 countries. The Chicago, Illinois-based company is best known for its burgers, fries, chicken products, breakfast offerings, coffee, and beverages under the McDonald's brand. The fast-food giant is expected to announce its fiscal 2026 second-quarter earnings before the market opens on Tuesday, Aug. 4. Ahead of the event, analysts expect MCD to report a profit of $3.33 per share on a diluted basis, up 4.4% from $3.19 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion. Micron Stock Is Off 31% From Its High. Why This Could Be the Best Time to Buy. Michael Saylor’s Bitcoin Treasury Company Strategy Is Falling Apart This Red-Hot AI Infrastructure Stock Just Made a Game-Changing Move. How to Play NBIS Here. Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For the current year, analysts expect MCD to report EPS of $12.88, up 5.6% from $12.20 in fiscal 2025. Its EPS is expected to rise 9.1% year over year to $14.05 in fiscal 2027. MCD stock has underperformed the S&P 500 Index’s ($SPX) 12.3% gains over the past 52 weeks, with shares down 8.5% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 6.9% gains over the same time frame. On Jul. 2, McDonald's shares rose 3.6% after UBS named the fast-food giant an attractive defensive dividend stock, citing its ability to gain market share through value offerings and marketing initiatives. The upbeat outlook outweighed concerns over a 3.9% year-over-year decline in U.S. restaurant traffic in late June, due to inflation and weak consumer sentiment. Analysts’ consensus opinion on MCD stock is fairly bullish, with a “Moderate Buy” rating overall. Out of 34 analysts covering the stock, 16 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 17 give a “Hold.” MCD’s average analyst price target is $328.19, indicating a potential upside of 20% from the current price levels. On the date of publication, Kritika Sarmah...

US restaurant and food distribution companies likely saw a mixed second quarter, with largely stable

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. McDonald's stock has delivered a 31.2% gain over the past five years, yet today its valuation signals are mixed, with the Discounted Cash Flow (DCF) intrinsic value estimate sitting close to the current market price while earnings based multiples still lean supportive. Over five years, McDonald's has returned 31.2%, which points to moderate long term wealth creation rather than an explosive run. Recent marketing and menu moves tied to events such as the FIFA World Cup can support expectations for sustained cash generation, while pressure on U.S. franchisee margins from value focused promotions may limit how much profit growth investors are comfortable pricing in. On Simply Wall St's broader checks, McDonald's scores 3 out of 6 on valuation, which is a mixed picture rather than a clear bargain or clear overvaluation. The stock's next move may depend on whether investors see McDonald's current price as a fair reflection of intrinsic value or still attractive given its cash generation and dividend profile. McDonald's delivered -6.2% returns over the last year. See how this stacks up to the rest of the Hospitality industry. The Discounted Cash Flow (DCF) model estimates what McDonald's future cash generation could be worth today. On the latest twelve month numbers, the company produced about $7.5b of free cash flow, and the model assumes these cash flows keep growing rather than shrinking. On that basis, the 2 Stage Free Cash Flow to Equity model points to an intrinsic value of about $259 per share. With the current price sitting roughly 6.1% above this estimate, McDonald's screens as slightly overvalued rather than clearly cheap or expensive. The recent removal of McDonald's from several Russell growth and defensive indexes helps explain why the market price can drift above a cash flow based estimate while investors reassess how to classify the stock. Overall, the DCF workup suggests McDonald's stock looks roughly fairly valued with a mild tilt toward being overvalued at today’s price. McDonald's is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on ho...

McDonald's (MCD) US comparable sales likely reached a new low during the second quarter amid a weak

McDonald’s (MCD) recently partnered with Alphabet's (GOOGL) (GOOG) Google to implement an AI-powered automated order-taking system at its drive-thru. The initiative called ArchIQ, still in the experimental phase, has currently been installed in just five branches in the U.S. Interestingly, this is not McDonald’s first attempt at using AI to improve its operations. The company had previously worked with IBM (IBM) to make a similar AI ordering system called AOT (Automated Order Taking), which failed because of its poor accuracy. This time around, the results appear to be more promising, with the five locations undertaking over a million transactions at around a 90% success rate. The strive for a change is part of McDonald’s new brand strategy, “McDonald’s > NEXT.” The Chairman and CEO, Chris Kempczinski, stated that the strategy will spur growth, productivity, and profitability across the chain’s locations. He believes that with competitors upgrading their menus, improving food quality, etc., they needed to keep up to remain the customers’ first choice. The CEO also claimed that with the staff having to interact less with the customers, the quality of the interactions is likely to go up, which he believes will improve the hospitality as well. Dear AST SpaceMobile Stock Fans, Mark Your Calendars for June 17 This Analyst Just Upped the Price Target on SanDisk Stock. Here's Why. Nvidia Chose This AI Cloud Stock Over Everyone Else. Here’s Why. Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Customers have so far shown a mixed reaction to AI taking their orders. Some say that the staff greeting them with a smile to take the order is part of the hospitality that the CEO says will improve. Another concern shown was that the AI taking your order was just the start, and that with time, even the cooking process will become AI-operated, and soon, many people will lose their jobs. This fear, however, is likely to be accepted by the public in due time, as AI progress does not show any sign of slowing down. Whether customers end up happier or not is an entirely different debate. McDonald’s, one of the world’s largest fast-food companies, serves through a staggering 45,000+ locations across the world. Founded in 1940, the company operates...

McDonald’s Corporation (NYSE:MCD) was among Jim Cramer’s stock calls on Mad Money, as he highlighted several opportunities in out-of-favor sectors. Cramer mentioned the company during the episode and said: Photo by jason briscoe on Unsplash McDonald’s Corporation (NYSE:MCD) operates and franchises restaurants that provide burgers, chicken sandwiches, fries, beverages, and desserts. During the May 11 episode, a caller asked if the stock is a buy, sell, or hold, and Cramer responded: While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

(Bloomberg) -- Walmart Inc. warned rising fuel costs are squeezing the company’s bottom line and could lead to higher prices for shoppers. Most Read from Bloomberg Spot the Difference: Putin Gets Trump Treatment From Xi in China Iran Says the US’s Latest Proposal Has ‘Narrowed the Gaps’ Modi’s Toffee Gift to Meloni Ignites Rally in Wrong Indian Stock Iran in Talks With Oman Over Permanent Hormuz Toll System Dow Average Climbs to Record on US-Iran Deal Hopes: Markets Wrap The world’s largest retailer said comparable sales in US stores, excluding fuel, rose 4.1% in the latest quarter, slightly better than what Wall Street analysts were expecting. It also forecast adjusted profit for the second quarter that missed expectations. The mixed results show that the company continues to gain market share across income levels with its focus on low prices, fast delivery and wide assortment. But that emphasis on affordability is facing pressure as inflation accelerates and the conflict in Iran drives up fuel prices. Walmart shares fell as much as 8% on Thursday, the steepest intraday drop since November 2023. The stock had risen 17% so far this year as of Wednesday’s close. Shares of some of Walmart’s peers, including Target and Kroger, also fell in regular trading on Thursday. “The high-income consumer is spending with confidence in many categories, whereas the low-income consumer, we can tell, is more budget-conscious, trying to navigate certain financial distress,” Chief Financial Officer John David Rainey said in an interview with Bloomberg News. Walmart is viewed as an economic barometer due to its large size and footprint across the US and other markets. Spending has largely held up in recent years, although consumers have become increasingly selective with their purchases. Good deals and unique products can still attract buyers. Additionally, higher tax refunds this year have given families some extra cash, but this benefit is expected to fade. As fuel prices pressure consumers’ budgets, they’re putting less gas in their tanks, with the number of gallons per pump falling below 10 for the first time since 2022. If fuel costs stay at current levels, prices across the board could rise in the second quarter and the second half of the year, Rainey said. Walmart’s prices rose about 1.2% during the last quarter. Fuel weighed on Walmart’s profit margin, with the company a...

Concerned about an AI bubble? Sign up for The Daily Upside for smart and actionable market news, built for investors. Someone call the chiropractor: There’s a K-shaped kink in the backbone of the economy, and retail therapy isn’t helping. Expect symptoms of the dual-track economy to appear in a plethora of earnings calls from retail giants this week, including Home Depot today, Target tomorrow and Walmart on Thursday. Complicating matters further? The supply chain shock from the closure of the Strait of Hormuz is already showing up in consumer spending habits. Sign up for The Daily Upside at no cost for premium analysis on all your favorite stocks. READ ALSO: ‘Bucket List’ Vacations Give Way to Budget-Friendlier Trips amid Sky-High Fuel Prices and Walmart Rattles Investors with Slowing Sales-Growth Forecast Signs of consumer distress are practically omnipresent these days. The University of Michigan’s consumer sentiment survey has recently plummeted to near all-time lows, even below the dizzying early days of the Covid-19 pandemic. And last week delivered a bleak warning to the retail giants’ strip mall neighbor, when McDonald’s CEO Chris Kempczinski admitted that the consumer environment is “certainly not improving.” Kempczinski flagged fast-rising gas prices as the “core issue” facing lower-income consumers, who are disappearing from the chain’s customer base. Domino’s CEO Russell Weiner echoed the sentiment in the pizza company’s earnings report in late April, and Whirlpool CEO Marc Bitzer warned last week of “recession-level” industry decline for big-ticket items like dishwashers. It’s why this week’s gamut of retail earnings may be just as significant a macroeconomic indicator as the next quarterly update from AI king Nvidia on Wednesday. And, for now, any sign of consumer resilience can just as easily be interpreted as the continued entrenchment of the K-shaped economy: US retail sales in April, for instance, advanced for the third consecutive month, according to a Commerce Department report last week; however, the 0.5% gain was not adjusted for inflation (CPI rose 0.6% month-over-month in April) and may reflect larger tax refunds to higher-earning consumers. The Federal Reserve Bank of New York last week also said that US credit card debt in the first quarter had ticked down from a record high at the end of last year … but did cop to “weakness in lowe...

McDonald’s delivered steady performance in Q1, beating Wall Street’s revenue and profit expectations amid a persistently challenging consumer environment. Management credited disciplined execution of its three-part strategy: emphasizing value offerings, driving marketing campaigns, and introducing menu innovation. CEO Chris Kempczinski specifically highlighted the U.S. relaunch of Extra Value Meals and a new under-$3 menu as instrumental in regaining share among value-oriented customers. Marketing partnerships, such as with Netflix’s KPop Demon Hunters, and new beverage category launches globally, also contributed to broad-based sales gains. Is now the time to buy MCD? Find out in our full research report (it’s free). Revenue: $6.52 billion vs analyst estimates of $6.47 billion (9.4% year-on-year growth, 0.7% beat) Adjusted EPS: $2.83 vs analyst estimates of $2.74 (3.1% beat) Adjusted EBITDA: $3.57 billion vs analyst estimates of $3.44 billion (54.7% margin, 3.6% beat) Operating Margin: 45.3%, in line with the same quarter last year Locations: 45,699 at quarter end, up from 43,756 in the same quarter last year Same-Store Sales rose 3.8% year on year (-1% in the same quarter last year) Market Capitalization: $195.9 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dennis Geiger (UBS) asked about the U.S. sales trajectory for the remainder of the year, with CEO Chris Kempczinski emphasizing confidence in the marketing calendar and McValue program, but noting uncertainty due to worsening consumer sentiment. Brian Harbour (Morgan Stanley) probed the frequency and rationale behind value menu changes. Kempczinski explained that having both meal deals and entry-level pricing is critical, and highlighted recent improvements in value perception scores. John Ivankoe (JPMorgan) questioned refranchising and margin strategy, with CFO Ian Borden acknowledging company-operated margin challenges and outlining criteria for optimizing ownership to maximize returns. David Tarantino (Baird) inquired about franchisee profitability pressures amid inflation. Kempczinski and Borden noted stable cash flow last year but flagged heighte...

McDonald’s Corporation (NYSE:MCD) is included among the 10 Best US Stocks to Invest in According to Billionaires. Ken Wolter / Shutterstock.com McDonald’s Corporation (NYSE:MCD) is the world’s leading global foodservice retailer with over 37,000 locations in over 100 countries. On May 8, Morgan Stanley lowered its price target on McDonald’s Corporation (NYSE:MCD) from $334 to $331, while keeping an ‘Equal Weight’ rating on the shares. The reduced target still represents an upside of over 20% from the current price levels. Similarly, RBC Capital also trimmed its price target on McDonald’s Corporation (NYSE:MCD) by $25 on May 9, but maintained a ‘Sector Perform’ rating on the shares (read more details here). The move comes after McDonald’s Corporation (NYSE:MCD) reported better-than-expected results in its Q1 report on May 7, with the foodservice retailer topping estimates in both profits and revenue. The company’s global comparable sales surged by 3.8% during the quarter, up from a 1% decline reported last year. Ian Borden, McDonald’s Corporation (NYSE:MCD)’s CFO, flagged a weaker start to the second quarter due to the high fuel prices putting persistent pressure on low-income consumers and turning sales slightly negative in April. However, the company reaffirmed its full-year 2026 financial guidance and reiterated its plan to expand to about 50,000 restaurants by the end of 2027. While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Blue Chip Dividend Stocks to Buy Now and 10 Best Fortune 500 Stocks to Buy According to Analysts Disclosure: None. Follow Insider Monkey on Google News.

Restaurant Brands International Inc. (NYSE:QSR) was among Jim Cramer’s stock calls on Mad Money as he discussed how semiconductor and AI infrastructure stocks are driving the market higher. Cramer highlighted the company’s latest quarterly results, as he remarked: Restaurant Brands International Inc. (NYSE:QSR) owns and operates quick-service restaurant chains, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs. While we acknowledge the potential of QSR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

McDonald’s Corporation (NYSE:MCD) is included among the 10 Best Inflation-Hedge Stocks to Buy for 2026. Ken Wolter / Shutterstock.com On May 8, Baird lowered its price recommendation on McDonald’s Corporation (NYSE:MCD) to $305 from $330. It reiterated a Neutral rating on the shares. The firm updated its model following Q1 results, saying optimism around the company’s internal growth drivers was being balanced against broader external risks. During the Q1 2026 earnings call, Chairman, President, and CEO Christopher Kempczinski said global system-wide sales rose 6% in constant currency, while global comparable sales increased 3.8%. He also noted that McDonald’s gained market share in nearly all of its top 10 markets during the quarter. Executive Vice President and Global CFO Ian Borden said strong revenue performance helped drive adjusted earnings per share of $2.83. That figure included a $0.13 benefit from foreign currency translation. Borden added that adjusted operating margin came in at 46%. He also acknowledged that margins at U.S. company-operated restaurants fell short of expectations and described the results as unacceptable. According to Borden, McDonald’s is reassessing the mix between franchised and company-owned locations as it looks to maximize value across the system. On restaurant expansion and rising construction costs, management reaffirmed its long-term growth plans while taking a more measured approach toward returns. Borden said the company still believes it can reach about 50,000 restaurants by the end of 2027. Kempczinski added that management is reevaluating the development pipeline as construction costs continue to rise. McDonald’s Corporation (NYSE:MCD) is a global foodservice retailer with operations across the US, International Operated Markets, and International Developmental Licensed Markets & Corporate segments. The US remains its largest market, with about 95% of locations operated by franchisees. While we acknowledge the potential of MCD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Value Stocks to Buy in 2026 According To Warren Buffett and 10 Best St...