With a market capitalization of $223 billion, McDonald’s Corporation (MCD) operates and franchises restaurants globally under the McDonald’s brand. The company, headquartered in Chicago, Illinois, provides a range of food and beverage options, including hamburgers, chicken sandwiches, fries, shakes, desserts, soft drinks, and coffee.

Over the past 52 weeks, McDonald’s shares have outperformed the broader market. MCD reported a 13.4% return during this period, while the S&P 500 Index ($SPX) achieved an 11.9% gain. Year-to-date, MCD shares are up 7.6%, contrasting with a slight decline in the SPX.

However, MCD has underperformed compared to the Consumer Discretionary Select Sector SPDR Fund (XLY), which surged by 19.3% over the same timeframe.

Following the release of its Q1 2025 results on May 1, McDonald’s shares fell by 1.9%. The company reported a 3.5% year-over-year decline in quarterly revenue, totaling $5.9 billion. Operating income also decreased by 3.2% from the previous year, amounting to $2.6 billion due to lower margins in both franchised and company-operated divisions. Nonetheless, MCD’s adjusted earnings per share (EPS) reached $2.67, slightly exceeding analysts’ expectations of $2.64.

Looking ahead to the current fiscal year ending in December 2025, analysts predict MCD’s adjusted EPS will rise by 4.4% year-over-year, reaching $12.23. Despite a mixed earnings surprise history—meeting or beating estimates in three of the last four quarters while missing once—analysts remain cautiously optimistic.

Among 34 analysts covering the stock, the consensus rating is a “Moderate Buy,” reflecting 18 “Strong Buy” ratings, two “Moderate Buys,” and 14 “Holds.” This outlook is slightly less positive than three months ago, when there were 19 “Strong Buy” ratings.

On May 6, BMO Capital analyst Andrew Strelzik raised McDonald’s price target to $345 while maintaining an “Outperform” rating. Currently, McDonald’s shares are trading below the mean price target of $335.77. The highest target among analysts is $370, indicating an upside potential of 18.6%.

On the date of publication, Sohini Mondal did not hold positions in any of the securities mentioned in this article. All information is for informational purposes only. For more details, please see the Barchart Disclosure Policy here.

The views expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.