McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates under various structures comprising conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.

McDonald’s looks like a high-quality but already expensive defensive asset rather than an obvious upside revaluation idea. The company’s margins are outstanding: gross margin of 57.35%, operating margin of 46.26%, and net profit margin of 31.72% are noticeably above the industry median, and they have remained stable over the years. ROA of 14.48% and ROI of 22.95% are also strong, confirming the business’s high efficiency and its ability to generate profits from its asset base. Revenue, operating profit, and net profit remain at a high level and generally show no deterioration, which supports fundamental resilience. EPS and forward EPS also look strong and are growing, while EBITDA remains solid, indicating continued cash generation. On the other hand, the valuation multiples — P/E of 25.45, P/S of 6.80, and P/FCF of 26.86 — are significantly above industry medians, meaning the market is already paying a premium for quality and stability. What is especially concerning is the extremely high P/B in the context of negative shareholders’ equity, which makes book valuation largely uninformative, but highlights the structural nature of the capital base and calls for caution in interpretation. Long-term debt of about $39.9 billion remains substantial, and shareholders’ equity is negative, so leverage and the balance sheet require attention, even if current liquidity is acceptable. A quick ratio of 1.12 and a current ratio of 1.08 show that short-term solvency is not under acute stress, but they also do not provide a large cushion. Dividend yield of 0.71% is increasing, but for an investor it is more of an additional positive than the main valuation driver. Overall, the fundamentals support business stability and moderate earnings growth, but the high valuation multiples limit upside re-rating potential. Therefore, the base case forecast appears somewhat stretched relative to the current set of metrics, and a more conservative valuation seems justified.

McDonald's Corporation

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов снизился, но остается значительным.

Medium index, slightly up. The outflow of funds from longs has decreased, but remains significant.

McDonald’s has strong margins and stable earnings, but its high P/E, P/S, and P/FCF valuation limits the potential for price growth.

Key Points
McDonald's is one of the world's largest fast-food companies.
Its brand is ubiquitous, with customers around the world knowing what to expect from the burger maker.
While McDonald's isn't fine dining, its reasonable prices and accessibility have made it a staple in many consumers' diets.
When you see the so-called golden arches of a McDonald's (NYSE: MCD) sign, you know exactly what to expect. Burgers, fries, soda, milkshakes, and an apple pie lie beyond the doors of the restaurant. The reliability of its offerings has helped McDonald's thrive as a business for a very long time. And the company is on the cusp of another impressive achievement, Dividend King status. Here's why I think this is the year it gets there.
What does McDonald's do?
On the surface, McDonald's is a restaurant that sells food to customers. However, there's more to the story. As noted above, every McDonald's sells basically the same thing with the same basic quality and speed. That consistency is a core part of the McDonald's story. It basically helped to create the fast-food segment of the restaurant industry.
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McDonald's also helped create the franchise industry. The company not only owns and operates its own locations, but it also effectively sells the right to operate McDonald's restaurants to others (its franchisees). The franchised locations pay fees to McDonald's. Often, McDonald's owns the property on which a franchise is located, as well, which adds even more upside to the proposition as property values increase.
Very few people would tell you that McDonald's serves good food, but it is most certainly affordable and reliable. And that has allowed the brand to grow to more than 45,000 locations in more than 100 countries. Roughly 95% of its restaurants are franchised. In the second quarter of 2026, the company's restaurants generated $37 billion in revenues, up 5% year over year, with same-store sales up 1.3%.
Systemwide sales aren't the same as the revenue that McDonald's itself generates. That's because most of its revenues come from franchise fees. McDonald's second-quarter revenues came in at roughly $7.1 billion, up 4% year over year. Earnings per share in the quarter were $3.32, up 6% year-over-year.
McDonald's is well-positioned for the current environment
It was a pretty good quarter, given that inflation has consumers tightening their budgets. But then, affordable, trustworthy food would be a good option for eating out in that situation. While some customers may simply stop going out, others will be trading down to McDonald's. And when economic concerns abate, and customers trade up again, McDonald's will benefit as less wealthy customers start eating out again.
The strength of the business model, coupled with the ubiquity of the brand, is what has enabled McDonald's to achieve 49 consecutive annual dividend increases. It is what I believe will allow the company to increase the dividend again in the fourth quarter, which is when it typically announces an increase. That will be increase number 50, making this Dow component a Dividend King.
Don't underestimate the importance of this achievement. The list of Dividend Kings includes just 58 stocks. While there's a restaurant supplier on the list, Sysco (NYSE: SYY), and a number of consumer staples companies, there are no restaurants. That McDonald's is on the verge of Dividend King status is a testament to the impressive success, and ongoing strength, of its business model.
Is McDonald's worth buying?
With a dividend payout ratio of roughly 60%, there is ample room for another increase. Now add in a 2.9% yield, which is well above the market's 1% yield, and there is a lot for a dividend investor to like here. And a recent 25% stock pullback, as of this writing, has left McDonald's price-to-sales and price-to-earnings ratios below their five-year averages, suggesting it is attractively priced. If you are a conservative dividend investor focused on dividend consistency, McDonald's, a soon-to-be Dividend King, could be a good addition to your portfolio.
Should you buy stock in McDonald's right now?
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Sysco. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Prediction: This High-Yield Dow Dividend Stock Will Become a Dividend King Before the End of the Year.

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Citigroup Inc (Symbol: C), where a total of 35,464 contracts have traded so far, representing approximately 3.5 million underlying shares. That amounts to about 42.5% of C's average daily trading volume over the past month of 8.3 million shares. Particularly high volume was seen for the $143 strike call option expiring September 18, 2026, with 2,895 contracts trading so far today, representing approximately 289,500 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $143 strike highlighted in orange:
Quanta Services, Inc. (Symbol: PWR) saw options trading volume of 4,247 contracts, representing approximately 424,700 underlying shares or approximately 41.4% of PWR's average daily trading volume over the past month, of 1.0 million shares. Particularly high volume was seen for the $760 strike put option expiring December 18, 2026, with 2,861 contracts trading so far today, representing approximately 286,100 underlying shares of PWR. Below is a chart showing PWR's trailing twelve month trading history, with the $760 strike highlighted in orange:
And McDonald's Corp (Symbol: MCD) options are showing a volume of 17,296 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 40.9% of MCD's average daily trading volume over the past month, of 4.2 million shares. Especially high volume was seen for the $255 strike call option expiring September 18, 2026, with 997 contracts trading so far today, representing approximately 99,700 underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $255 strike highlighted in orange:
For the various different available expirations for C options, PWR options, or MCD options, visit StockOptionsChannel.com.
Further C Research:

Notable Friday Option Activity: C, PWR, MCD

Starbucks Corporation SBUX is increasingly turning to the Refreshers platform to unlock afternoon traffic, a key growth opportunity under its Back to Starbucks strategy. The company’s third-quarter fiscal 2026 results suggest the strategy is gaining traction, although sustaining momentum will depend on continued innovation and execution.
U.S. comparable sales increased 7.9% in third-quarter fiscal 2026, supported by 4.2% transaction growth and 3.6% higher average ticket. While growth was broad-based across dayparts, management acknowledged that morning transactions remain the strongest, leaving significant room to build the afternoon occasion.
Refreshers emerged as an important catalyst. U.S. Refresher revenues grew at a double-digit rate year over year, with customizable Energy Refreshers, Blue Coconut and Mango helping attract customers at different times of day. CFO Cathy Smith highlighted Refreshers as an afternoon beverage occasion, alongside Matcha and new food offerings such as wraps.
Starbucks also sees differentiation through flavor, customization and its beverage craftsmanship. The company plans to test sparkling “Spritzers” and has already introduced blended Refreshers, creating additional avenues for customer engagement.
The opportunity is meaningful, but competition is intensifying as other quick-service restaurants expand their beverage offerings. Still, Starbucks’ improving store execution, stronger afternoon merchandising and expanding menu innovation provide reasons for optimism.
Refreshers Face Growing Competition From BROS and MCD
Starbucks’ push to expand the afternoon daypart comes as competition in cold and customizable beverages intensifies. Dutch Bros Inc. BROS is a particularly relevant rival, with a beverage-focused model built around customizable cold drinks, energy beverages and flavored refreshers. BROS’ strong positioning among younger consumers could make it a formidable competitor as Starbucks seeks to increase afternoon visits. Starbucks itself acknowledged that competitors are becoming more active in the refresher space, making differentiation through flavors, customization and beverage craftsmanship increasingly important.
McDonald’s Corporation MCD also competes for afternoon beverage occasions through its expanding McCafé lineup and cold beverages. Although its core business is broader than Starbucks, the large restaurant footprint and value-oriented positioning give McDonald’s significant reach among consumers seeking convenient drinks and snacks.
For Starbucks, the advantage lies in its established Refreshers platform and continued innovation, including blended and sparkling variants. However, maintaining customer interest will require Starbucks to consistently refresh its offerings while converting beverage experimentation into repeat afternoon traffic.
SBUX’s Price Performance, Valuation & Estimates
Starbucks’ shares have gained 21.2% over the past year, while the industry declined 8.2%.
SBUX’s One-Year Price Performance
From a valuation standpoint, SBUX trades at a forward price-to-earnings (P/E) multiple of 32.04, above the industry’s average of 21.49.
SBUX’s P/E Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 21.6%. EPS estimates for fiscal 2026 have increased in the past 60 days.
EPS Trend of SBUX Stock
SBUX’s Zacks Rank
SBUX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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SBUX Bets on Refreshers to Boost Afternoon Traffic: Will it Pay Off?

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McDonald’s Corporation MCD has pushed its target of reaching 50,000 restaurants globally to 2028 from the end of 2027, citing higher development costs and a pressured consumer environment. The adjustment follows a review of its restaurant pipeline and signals a more measured approach to expansion.
The decision reinforces McDonald’s established focus on investment returns. The company adjusted its opening pace to support appropriate returns on new locations, emphasizing the quality of development alongside the number of openings. It continues to see significant opportunities to expand its footprint despite the revised schedule.
Despite the adjustment, McDonald’s said it remains in the fastest period of restaurant growth in its history. The company remains on track to open approximately 2,600 gross restaurants in 2026. New openings are contributing to growth, with second-quarter systemwide sales increasing 4% year over year in constant currency.
For McDonald’s, moderating expansion could help preserve the financial appeal of new locations as investment costs rise. The longer timeline provides flexibility to pursue growth at a pace consistent with its return objectives. This supports a disciplined approach to development, with new-restaurant performance remaining the key indicator of success.
Key Competitors Taking Different Paths on Unit Growth
Starbucks Corporation SBUX is taking a more selective approach to coffeehouse development as it works to build a stronger store base. Management said every new coffeehouse must “earn its place,” while net new company-operated unit growth in North America may remain modest through fiscal 2027. Starbucks is also gaining greater visibility into underperforming locations that could be closed while rebuilding its U.S. development pipeline and directing near-term resources toward coffeehouse uplifts, where early results are showing transaction gains. International markets are expected to remain a meaningful contributor to unit growth, supporting the company’s fiscal 2026 target of approximately 600-650 net new coffeehouses.
Dutch Bros Inc. BROS continues to pursue a faster unit expansion strategy, supported by strong new-shop productivity and a growing development pipeline. The company opened 48 system shops in the second quarter and has approximately 90% of the pipeline needed to reach 2,029 shops by 2029. Management said new-shop productivity remained strong alongside rising systemwide AUVs, while several newer markets were annualizing above expectations. Company-operated shop contribution margin reached approximately 31% in the second quarter, although higher coffee and occupancy costs are expected to pressure adjusted EBITDA margin in 2026. With at least 185 system shop openings expected this year, Dutch Bros’ approach contrasts with MCD’s more measured expansion pace, highlighting the importance of new-store productivity and disciplined development as restaurant operators balance growth with attractive returns.
MCD’s Price Performance, Valuation & Estimates
Shares of McDonald’s have declined 18.3% over the past year compared with the industry’s fall of 7.5%.
MCD’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.22, above the industry’s average of 3.23.
MCD’s P/S Ratio (Forward 12-Month) vs. Industry
The Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) implies a year-over-year rise of 5.5%. The EPS estimates for 2026 have declined in the past 30 days.
EPS Trend of MCD Stock
MCD’s Zacks Rank
MCD stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can MCD's Slower Expansion Pace Help Protect New-Restaurant Returns?

Key Points
Despite the revenue headwind that’s weighed on the stock this year, there’s nothing about this recent weakness that’s permanent, or insurmountable.
Its consistent dividend growth isn’t rooted in food sales -- it's driven by something more persistent.
McDonald’s stock is also about to upgrade its status as a dividend payer to dividend royalty, which will raise its stature as an investment.
Has your search for a new income-generating holding led you to McDonald's (NYSE: MCD) yet? Its forward-looking dividend yield of 2.9% is certainly respectable enough, although there's no denying you could find better.
Nevertheless, if your portfolio needs more reliable cash flow or if you're just looking for a bargain, stepping into a long-term position in this fast-food restaurant chain's stock while it's down 24% from its February peak could be a brilliant decision.
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Here are the three biggest reasons why.
1. Its business is resilient
Despite this year's disappointing sales growth that caused the pullback from February's high, the fast-food restaurant business, and McDonald's in particular, are resilient. People always need to eat, and always need convenient value. With an industry-leading 46,028 locations peppered all over the planet, McDonald's is usually people's first and best option.
It's also worth adding that this year's sales headwind isn't anything the company hasn't faced before, and either navigated around or pushed through. That's not apt to be different this time around.
As CFO Ian Borden believably commented during the second-quarter earnings conference call: "We're acting with urgency to improve our baseline guest traffic and put the U.S. business in a stronger position as we exit 2026."
2. The company can consistently fund its dividend payment (and its growth)
Most investors understand that McDonald's is a franchise. What most investors may not fully appreciate is how this franchise is so different from almost any other.
The organization's top profit center isn't selling food. It's not even royalties for the use of its well-known brand name. It's rent. McDonald's owns most of the buildings its franchisees operate out of -- and charges them ever-rising market-based rent rates regardless of how well that location is performing -- so the parent company's cash flow is secured.
If you want specific numbers, about 95% of the chain's restaurants are franchises. While more than 60% of the total revenue the company collected from these operators year to date is rent, less than 40% of it is royalty payments.
3. It's on the verge of becoming a Dividend King
Finally, as was noted, this company's per-share dividend has grown every year since 1976. It hasn't announced its next consecutive payment increase, but it usually makes this announcement in October. Look for the next one to be made next month.
The upcoming announcement will be different than all the others up until this point, however. The next one will mark the 50th consecutive annual dividend payment growth, the milestone that will officially qualify McDonald's as a Dividend King. Although this technically doesn't change anything about the stock's value, it does take its stature as an income investment up a notch, bolstering the ticker's perceived value.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McDonald's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
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James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

McDonald's Has Raised Its Dividend Every Year Since 1976. Here Are 3 Reasons I'd Buy It and Never Sell.

Key Points
McDonald's has raised its dividend for 49 straight years and currently offers a forward yield of 2.89%.
Colgate-Palmolive has increased its dividend for 63 consecutive years, currently yielding 2.35%.
Procter & Gamble has raised dividends for 70 straight years, currently yielding 2.96%.
The S&P 500 (SNPINDEX: ^GSPC) dividend yield is hovering around a historic low near 1%. If you're trying to generate more passive income, you don't have to settle for that. Some of the best-known consumer brands offer higher yields.
Three quality dividend stocks I'd buy this month are McDonald's (NYSE: MCD), Colgate-Palmolive (NYSE: CL), and Procter & Gamble (NYSE: PG). These stocks yield 2.3% or more, and their dividends are supported by strong free cash flow.
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1. McDonald's
At the time of this writing, shares of McDonald's are trading about 23% below their recent highs, pushing the forward dividend yield up to 2.89% -- nearly three times the market average.
The sell-off stems from soft U.S. comparable sales, which rose just 0.8% year over year in the second quarter. Notably, management didn't place the blame on high gas prices or other external headwinds. They pointed to execution issues -- and that kind of determination to improve operations is what can drive excellent returns for shareholders over time.
McDonald's remains a global powerhouse with a profitable business model, generating revenue from fees paid by franchised restaurants. About 95% of its restaurants are franchised. Over the last year, it generated $7.8 billion in free cash flow on $28 billion in revenue and paid out 67% of free cash flow as dividends.
Management also sees room to expand margins by reducing complexity and improving restaurant efficiency and service times. The dividend has grown about 7% annually over the past five years, and stronger margins should help maintain that trend.
With a 49-year streak of dividend increases and a renewed focus on productivity, McDonald's looks well-positioned to reward patient income investors.
2. Colgate-Palmolive
Colgate-Palmolive is trading roughly 17% off its recent highs, lifting its forward dividend yield to 2.35%. It's a classic staples business: steady demand, resilient cash flow, and a long history of annual dividend growth.
Trailing-12-month revenue rose 5% year over year to $21 billion, supported by premium products like Hill's pet nutrition and strength in international markets.
Colgate is a global leader in toothpaste, with 41% market share in 2025. Selling everyday essentials in oral and personal care generates reliable sales and the free cash flow that funds consistent dividend growth. TTM free cash flow increased 14% to $3.8 billion, and the company paid out 43% of that free cash flow as dividends.
Colgate has raised its dividend for 63 consecutive years. The dividend has grown at about 3% annually over the last five years. With management focused on lowering costs, including the use of artificial intelligence (AI) tools, to support margin expansion, investors should expect continued dividend growth over the long term.
3. Procter & Gamble
Procter & Gamble is down about 18% from its highs, bringing its forward dividend yield to 2.96%. That's compelling for a company whose products consumers buy year-round, in good economies and bad.
Growth has cooled amid sluggish consumer spending, but organic sales still increased 1% year over year. P&G is also dealing with margin pressure from higher costs, which has weighed on margins. Even so, adjusted earnings still grew 1%, showing the business can absorb turbulence.
Big consumer brands inevitably hit slower patches -- but P&G's dividend track record is hard to match. It has paid a dividend for 136 years and raised it for 70 straight years, including through every recession in the past half-century.
In fiscal 2026 (ending in June), P&G returned $10 billion in dividends out of $15 billion in free cash flow, a payout ratio of roughly 67%. With a five-year dividend growth rate of around 5% and a portfolio anchored by brands like Tide, Gillette, and Oral-B, P&G's dividend streak appears well-positioned to continue.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and McDonald's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 6, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colgate-Palmolive. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

The S&P 500's Yield Is at Historic Lows. Here Are 3 Dividend Stocks I'd Buy in September.

McDonald’s Corporation MCD is trading at a valuation that appears relatively attractive compared with the broader restaurant industry. The company’s forward 12-month P/E multiple of 19.15X is below the industry average of 22.57X, suggesting that investors are taking a more cautious view of the fast-food giant despite its powerful brand, global scale and resilient franchise-driven business model.
P/E (F12M)
The discount follows a difficult period for the stock. MCD’s shares have declined 20.8% over the past six months, compared with a 10.2% drop for the restaurant industry. The stock has also lagged the S&P 500’s 12% gain, as investors have favored companies with stronger near-term growth prospects. McDonald’s has underperformed restaurant peers including Starbucks Corporation SBUX, Yum! Brands, Inc. YUM and Chipotle Mexican Grill, Inc. CMG.
The key question for investors is whether this weakness reflects longer-lasting fundamental concerns or creates an attractive entry point into a globally recognized restaurant leader.
U.S. Weakness Weighs on Performance
McDonald’s second-quarter results highlighted both its strengths and the areas requiring improvement. Global comparable sales increased 1.3%, while systemwide sales rose 4% in constant currency. Adjusted EPS came in at $3.38, up 5% year over year on a constant-currency basis.
However, the U.S. business remained a key weakness. Comparable sales increased just 0.8% in the quarter, as execution issues affected traffic and customer experience. Management attributed roughly two-thirds of the U.S. traffic shortfall compared with expectations to problems surrounding value execution. The weaker-than-expected impact of the FIFA marketing campaign compounded the underperformance.
The company also acknowledged that restaurant teams were burdened by too many simultaneous product launches, promotions and operational changes. Management plans to simplify restaurant operations and provide crews with greater support, while increasing targeted digital offers and reallocating marketing spending toward proven value programs such as Extra Value Meals.
Importantly, McDonald’s does not view these issues as a fundamental strategy problem. Management believes the primary opportunity is to improve execution, particularly around value, operations and marketing.
International Business Provides Stability
McDonald’s international operations continue to offer an important counterbalance to U.S. weakness. Comparable sales increased 1.5% in International Operated Markets, with Germany, Australia and the United Kingdom performing well. International Developmental Licensed Markets posted 1.9% comparable-sales growth, led by Japan, which delivered its 10th consecutive quarter of positive comparable guest-count growth.
Management expects comparable-sales growth in both international segments to accelerate sequentially in the third quarter, offering a potential source of momentum while the U.S. business works through its execution challenges.
Beverages and McDonald’s NEXT Could Support Growth
One of the more encouraging developments is McDonald’s new beverage platform. Early results in the United States, Canada and Germany exceeded expectations, with beverages generating new occasions, higher guest checks and strong food attachment. More than half of beverage-related traffic is occurring after lunch, while average checks are about 50% above the full-day average.
Longer term, management is positioning McDonald’s NEXT as a growth framework focused on improving food taste and quality, enhancing hospitality, simplifying restaurant operations and strengthening customer engagement. The company expects productivity gains to help fund investments associated with the strategy.
MCD is also maintaining the restaurant expansion plans, although it has pushed the 50,000-restaurant target to 2028 from 2027 because of inflationary development costs and a more pressured consumer environment. McDonald’s still expects to open roughly 2,600 gross restaurants in 2026.
McDonald’s Growth Outlook Remains Encouraging
Analysts continue to see room for earnings growth at McDonald’s, although estimates have been mixed recently. Over the past 30 days, the Zacks Consensus Estimate for 2026 earnings increased 2 cents to $12.87 per share, while the 2027 estimate declined 13 cents to $13.89. Despite the revisions, the estimates imply solid year-over-year EPS growth of 5.5% in 2026 and 7.9% in 2027.
Revenue expectations also point to continued expansion. The Zacks Consensus Estimate projects revenues of $28.15 billion in 2026 and $29.51 billion in 2027, representing year-over-year growth of 4.7% and 4.8%, respectively. These projections indicate that McDonald’s remains positioned for steady top-line and earnings growth, supported by its global scale, restaurant expansion and ongoing initiatives to strengthen customer traffic and engagement.
Why Investors Should Hold MCD
McDonald’s has strong long-term potential, backed by its powerful brand, global presence and franchise model. Its beverage platform and McDonald’s NEXT strategy could support growth.
However, the U.S. business still faces execution issues in value, operations and marketing. Management is taking steps to address these challenges, but the recovery may take time. Existing investors should hold MCD and wait for clearer signs of improvement. New investors may want to wait before buying, as stronger U.S. traffic and execution would provide greater confidence in the recovery.
MCD currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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McDonald's Trades at 19.15X P/E: Is This a Discounted Opportunity?

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My Top 10 Stocks to Buy Right Now in September

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in McDonald's Corp (Symbol: MCD), where a total of 55,218 contracts have traded so far, representing approximately 5.5 million underlying shares. That amounts to about 131.4% of MCD's average daily trading volume over the past month of 4.2 million shares. Especially high volume was seen for the $285 strike put option expiring September 18, 2026, with 3,809 contracts trading so far today, representing approximately 380,900 underlying shares of MCD. Below is a chart showing MCD's trailing twelve month trading history, with the $285 strike highlighted in orange:
CECO Environmental Corp. (Symbol: CECO) options are showing a volume of 10,526 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 125.7% of CECO's average daily trading volume over the past month, of 837,640 shares. Particularly high volume was seen for the $60 strike put option expiring October 16, 2026, with 3,500 contracts trading so far today, representing approximately 350,000 underlying shares of CECO. Below is a chart showing CECO's trailing twelve month trading history, with the $60 strike highlighted in orange:
And DocuSign Inc (Symbol: DOCU) options are showing a volume of 35,847 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 120.5% of DOCU's average daily trading volume over the past month, of 3.0 million shares. Particularly high volume was seen for the $67 strike call option expiring September 04, 2026, with 2,661 contracts trading so far today, representing approximately 266,100 underlying shares of DOCU. Below is a chart showing DOCU's trailing twelve month trading history, with the $67 strike highlighted in orange:
For the various different available expirations for MCD options, CECO options, or DOCU options, visit StockOptionsChannel.com.
Further MCD Research:

Indicator	TTM Median
P/E	25.45 18.27
Price/Sales	6.80 0.68
P/B	30.87K 1.73
P/FCF	26.86 13.56

Indicator	TTM Median
ROE	0.00 14.93
ROA	14.48 5.11
ROI	22.95 8.85
Net Worth	192.87 0.84
Quick Ratio	1.12 0.86
Current Ratio	1.08 1.39

Indicator	TTM Median
Net Profit Margin	31.72 5.79
Operating Margin	46.26 8.49
Gross Margin	57.35 39.55
Return on tangible equity	0.00 21.78

Indicator	TTM Median
EPS	3.38 0.55
EPS Forecast	3.32 0.50
Revenue	7.10B 193.00M
Gross Profit	4.12B —
EBITDA	3.52B —

McDonald's Corporation

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