
McDonald's Trades Near 52-Week High: Can the Stock Keep Sizzling?
Shares of McDonald's Corporation MCD ended yesterday's session at $314.48, just 3.6% shy of its 52-week high, a testament to the market's bullish sentiment. Over the past six months, MCD has climbed 8% against the industry 's decline of 1.6%.
Adding to the positive technical picture, McDonald's stock trades above its 50-day simple moving average (SMA) of $310.53, a key indicator of sustained upward momentum. This outperformance highlights growing investor confidence in the Golden Arches' resilient business model and steady growth trajectory.
In the past six months, other industry players like Starbucks Corporation SBUX, Yum! Brands, Inc. YUM and Restaurant Brands International Inc. QSR have declined 13.1%, and gained 9.7% and 1.1%, respectively.
Price Performance
McDonald's Growth Projection Encourages
In the past 7 days, the company's earnings for 2025 and 2026 have increased by 2 cents and 3 cents to $12.23 and $13.20, respectively. The Zacks Consensus Estimate for MCD's 2025 and 2026 earnings per share indicates year-over-year increases of 4.4% and 7.9%, respectively.
The consensus estimate for revenues is pegged at $26.34 billion and $27.81 billion for 2025 and 2026, implying year-over-year improvements of 1.6% and 5.6%, respectively.
Factors Acting in Favor of MCD
The company continues to focus on expansion efforts to drive growth. McDonald's believes that there is a huge opportunity to grow all its brands globally by expanding its presence in existing markets and entering new ones. Its expansion efforts continue to drive performance. Despite unfavorable scenarios, the company continues to expand its global footprint. McDonald's plans to open 2,200 restaurants globally in 2025, which includes a quarter of these openings in its US and IOM segments. It aims to open 50,000 restaurants by 2027.
McDonald's aims to enhance its core menu offerings to drive growth. In January 2025, the company launched its McValue platform in the United States to provide consistency and compelling customers with flexibility over choices.
Then again, the company continues to excel in delivering a superior customer experience with notable operational improvements, improved service times and increased customer satisfaction across most major markets.
The focus on core menu items has enhanced kitchen execution, exemplified by the Best Burger initiative. In more than 80% of markets, this training highlights fundamental standards, and boosts taste and quality perceptions. McDonald's plans to roll out the initiative to nearly all markets worldwide by the end of 2026, strengthening consistency and execution across its global footprint.
Continued investment in digital, tech and global business services is expected to drive long-term efficiencies. MCD is enhancing its delivery services to provide greater convenience and improve the customer experience. With an emphasis on expanding delivery options and strengthening digital capabilities, the company is focused on creating seamless ways for customers to access its offerings.
Over the past year, the delivery sales mix has doubled in Australia, Canada and the United States. McDonald's expects to increase the percentage of system-wide delivery sales originating from its mobile app to 30% by 2027.
McDonald's is leveraging its loyalty program and digital initiatives to drive customer retention and expand its base. By enhancing the customer experience across multiple channels, the company is creating more value for loyalty members and increasing engagement through innovative digital solutions.
Since launching its loyalty program, MCD has seen significant growth. In 2024, sales to loyalty members reached $30 billion. With the continued rise in digital adoption, McDonald's is optimistic about the long-term success of its loyalty program. System-wide sales from loyalty members across 60 participating markets were more than $31 billion over the trailing 12 months, with approximately $8 billion generated in first-quarter 2025. The company expects to expand its active user base to 250 million and achieve $45 billion in annual sales by 2027.
MCD Stock Trades at a Discount
McDonald's is currently valued at a discount compared with its industry on a forward 12-month price-to-earnings basis. The company's forward 12-month P/E ratio stands at 25.03X, lower than the industry's average of 26.15X. Meanwhile, Starbucks, Yum! Brands and Restaurant Brands are trading at P/E ratios of 30.03X, 23.57X, and 18.38X, respectively.
P/E (F12M)
Traffic Decline Concerns MCD
In the first quarter of 2025, McDonald's experienced a decline in global comparable sales due to weaker-than-expected industry traffic in several key markets. In the United States, traffic from low-income consumers fell nearly 10% year over year, and middle-income traffic also dropped sharply, highlighting growing economic pressures on a broader swath of consumers.
While high-income consumers remained resilient, the widening disparity in traffic trends underscored the uneven effects of inflation and financial uncertainty. MCD acknowledged that affordability is critical in this environment and has responded by reinforcing its value platforms to help win back frequency from pressured consumer cohorts.
End Notes
McDonald's is a fundamentally strong company with a resilient business model, robust global expansion plans and solid digital and loyalty strategies that are driving customer engagement and operational efficiency.
However, despite its strong long-term prospects and near 52-week high trading levels, the recent dip in traffic, particularly among lower and middle-income consumers, raises caution amid a pressured macro environment.
While existing shareholders can confidently hold the stock as McDonald's continues to execute well and improve its customer experience, potential investors may want to wait for a more favorable entry point, given the short-term headwinds. MCD currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Starbucks Corporation (SBUX): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
Yum! Brands, Inc. (YUM): Free Stock Analysis Report
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Globe and Mail
33 minutes ago
- Globe and Mail
Wealthsimple is taking on the big banks - and might just surpass them
Having redefined investing, Wealthsimple has attempted to create the country's best bank account. It's too early to hand this distinction to Wealthsimple because it hasn't fully introduced all of its new banking features, some of which are gimmicky. But who are Wealthsimple's challengers? Big-bank innovation is an oxymoron, and alternative banking has been slow to take advantage. A thought for anyone unhappy with their bank account or curious what modern banking can look like: Open a chequing account at Wealthsimple and give it a try. No monthly fees mean no harm done if you don't like it. Typically, banks are supermarkets selling chequing and savings accounts, mortgages, lines of credit and investments. Wealthsimple comes across like a higher-end retailing experience where all these services interlock in ways that reward loyal clients. The more business you do with the company, the more you receive in interest and the less you pay in fees. Wealthsimple plans paperless cheques and Uber-like delivery of cash to customers' doors Wealthsimple CEO says banks are a tax on Canadians The Wealthsimple credit card offers unlimited 2-per-cent cash back at a monthly fee of $10, but that fee falls to zero if you have $100,000 or more with the company or you set up direct deposits of paycheques totalling $4,000 or more a month. The card also offers zero foreign-exchange fees, compared with the usual 2.5 per cent charged by other cards on purchases outside Canada. The Wealthsimple line of credit, set to arrive by year's end, will let you instantly borrow at rates as low as 4.45 per cent. The amount you can borrow is tied to your level of savings and investments with the company – in other words, how much collateral you have. Rates for a home equity line of credit, which can cost hundreds to set up, start around 5 per cent these days. The no-fee chequing account from Wealthsimple offers interest with a base rate of 1.75 per cent, a lowball offer in today's market. But there's a boost of half a percentage point if you set up a direct deposit of your paycheque, and you can get as high as 2.75 per cent if you have extensive assets with the company. Not having a physical branch network allows alternative banks to offer zero-fee chequing and better rates on savings than the big banks. But no other alt bank leans into digital banking like Wealthsimple, while also providing services people usually access through branches. For example, the company will offer paperless cheques that can be ordered on its app and delivered to the recipient. Cash can be ordered for delivery as well, as can bank drafts. Here we have an example of gimmickry – are there any under-40s in Canada who ever use cheques, or who don't pass a bank machine many times a day? Another question about these services is pricing. Wealthsimple hasn't firmed up the cost for all of them yet, a reminder that there are always limits to free banking. A few more novel features of the Wealthsimple chequing account: Security is obviously on Wealthsimple's mind because the company offers $1-million in deposit insurance through Canada Deposit Insurance Corp. Wealthsimple places deposits at multiple unnamed CDIC-member banks, a workaround for the usual $100,000 coverage limit per eligible account. Wealthsimple began as a robo-adviser, a business it continues to dominate. Next came self-directed investing on a platform that led the way in offering zero-commission trading of stocks and exchange-traded funds, and fractional trades that allow investors to buy less than a full share. Wealthsimple is not the best investing platform, and its move to offer private-equity and debt investments suggests unwise trend-chasing. But Canadian investing is more open and inclusive because of Wealthsimple. On the banking side, there's an expectation that the impending arrival of open banking will spark a wave of innovation and competition. Open banking means bank clients can securely share their information with new apps and alternative financial players. Obviously, Wealthsimple isn't waiting for the federal government to introduce rules for open banking. It's ramming innovations through at a rate that exceeds what big banks do in 10 years. Anyone creating a short list of top alternative banks needs to include EQ Bank, which offers 3.5-per-cent interest for now if you direct deposit paycheques of $2,000 a month or more. The base savings rate is just 1.25 per cent. Koho, Neo Financial and PC Financial are also worth a look for banking, while Questrade is on a hot streak as an investing innovator and is expected to get into banking. What makes Wealthsimple unique is the way it's building a seamless, state-of-the-art financial company that offers everything and rewards clients who take advantage. Ironically, the onetime upstart could turn out to be the next big bank. You should try them. Are you a young Canadian with money on your mind? To set yourself up for success and steer clear of costly mistakes, listen to our award-winning Stress Test podcast.


Globe and Mail
an hour ago
- Globe and Mail
Quebec names mediator as Montreal public transit strike in third day
Quebec's labour minister says he has named a mediator in a labour dispute between Montreal's public transit authority and its maintenance workers that has limited bus and metro service across the city. About 2,400 maintenance workers have been on strike since Monday after more than a year of negotiating. As a result, buses and metros are only operating during morning and afternoon rush hours and late at night. Labour Minister Jean Boulet said Wednesday on social media that the mediator will be tasked with easing tensions between both sides and restoring a dialogue 'conducive to negotiations.' One day earlier, he urged the union and the transit authority to jointly seek mediation to bring them closer to a deal. In a news release on Wednesday, the transit authority — Société de transport de Montréal — said negotiations with the union extended late into the prior night before the two sides agreed on the conditions governing mediation. Both sides filed a joint application for mediation to the Labour Department. 'Meetings with the union continue and are still scheduled several times a week,' the transit authority said. The mediation deal is a 'step in the right direction,' said Marie-Claude Léonard, general director of the agency. But she said, 'we are not one meeting away from reaching a solution.' The agency noted it had proposed mediation as early as May 29. Bruno Jeannotte, president of the maintenance workers union, said in an e-mailed statement that mediation will hopefully accelerate negotiations 'to quickly resolve the issues that separate us.' As part of an agreement reached with Quebec's labour tribunal, regular service will be maintained from Friday to Sunday for the Canadian Grand Prix weekend, but operations will be restricted on other days until the strike is set to end on June 17. Earlier this week, Jeannotte also said his team is in talks with the union representing bus and subway drivers — who have also voted for a strike mandate — on ways to increase pressure on the transit authority. In a post on the X platform, Mayor Valérie Plante thanked Boulet for getting involved. 'This is an important step that will help move things forward,' Plante wrote. 'Our wish is clear: that the dialogue accelerates to reach an agreement.' She also sympathized with Montrealers who've been affected by the service cuts. 'The situation is difficult and complex for thousands of us. Public transit is essential and must resume quickly,' Plante said.


Globe and Mail
an hour ago
- Globe and Mail
Coeur to Participate in the RBC Capital Markets Global Mining & Materials Conference
Coeur Mining, Inc.'s ('Coeur' or the 'Company') (NYSE: CDE) Chairman, President and Chief Executive Officer, Mitchell J. Krebs, and Senior Vice President and Chief Financial Officer, Thomas S. Whelan, will participate in the RBC Capital Markets Global Mining & Materials Conference in New York, New York on Thursday, June 12, 2025. The RBC Capital Markets Global Mining & Materials Conference is an invitation-only investment conference. Presentation materials will be made available on the Company's website at About Coeur Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with five wholly-owned operations: the Las Chispas silver-gold mine in Sonora, Mexico, the Palmarejo gold-silver complex in Chihuahua, Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the Wharf gold mine in South Dakota. In addition, the Company wholly-owns the Silvertip polymetallic critical minerals exploration project in British Columbia.