Is McDonald's stock a buy right now?
As of early May 2025, McDonald's Corporation (NYSE: MCD) trades near $312, with an average daily volume of 3.88 million shares, reflecting sustained engagement from both institutional and retail investors. Despite a modest dip in first-quarter revenue and a temporary decline in U.S. sales—the steepest since the pandemic—McDonald's demonstrates resilience amid economic pressure on its core consumer segment. The company continues to build on its robust loyalty program, generating $8 billion in systemwide sales for the quarter, and maintains a quarterly dividend of $1.77 per share. Its digital platforms and menu innovation are driving long-term transformation, even as the broader quick-service restaurant sector contends with shifting consumer spending. The current market sentiment remains neutral to constructive, as McDonald's trades above key moving averages with a strong balance between risk and reward. Notably, more than 30 national and international banks now cite a consensus target price of about $406, underscoring a favorable outlook in a competitive landscape. For investors seeking durable brands and global reach within consumer cyclicals, McDonald's stands out as a stable consideration at this juncture.
- Strong global brand and scale with over 40,000 restaurants worldwide.
- Consistent dividends, with a current yield of 2.27% and a long history of payouts.
- Leader in digital transformation and loyalty program growth, fueling sticky customer engagement.
- Lower volatility than the market (beta 0.62) offers portfolio stability.
- Proven innovation with new menu items and technology driving continued relevance.
- Short-term revenue softness tied to U.S. consumer spending pressures.
- Faced with intense competition from value-driven fast-food rivals in uncertain times.
- What is McDonald's?
- How much is McDonald's stock?
- Our full analysis on McDonald's </b>stock
- How to buy McDonald's stock in United States?
- Our 7 tips for buying McDonald's stock
- The latest news about McDonald's
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been tracking McDonald's performance for over three years. Every month, hundreds of thousands of users in the United States rely on us to analyze market trends and highlight the best investment opportunities. Our analyses are provided solely for informational purposes and do not constitute investment advice. In line with our ethical charter, we have never accepted, and will never accept, compensation from McDonald's.
What is McDonald's?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based company with global presence and strong international growth plans. |
| 💼 Market | NYSE | Listed on the New York Stock Exchange, easily accessible for U.S. investors. |
| 🏛️ ISIN code | US5801351017 | Unique ISIN for McDonald’s; used for global stock identification. |
| 👤 CEO | Chris Kempczinski | CEO since 2019, driving digital innovation and global franchise strategy. |
| 🏢 Market cap | $223.07 billion | Large-cap stock offering strong brand stability and liquidity. |
| 📈 Revenue | $5.96 billion (Q1 2025) | Q1 revenue slightly declined due to U.S. sales pressure and economic trends. |
| 💹 EBITDA | Not publicly disclosed for Q1 2025 | EBITDA margin remains historically robust, highlighting operational efficiency. |
| 📊 P/E Ratio (Price/Earnings) | 27.56 | High P/E indicates growth expectations, but premium valuation may limit upside. |
How much is McDonald's stock?
The price of McDonald's stock is falling this week. As of now, McDonald's shares are trading at $311.96, with a 24-hour decrease of 0.54% (-$1.68) and a weekly drop of 1.51%. The company holds a market capitalization of $223.07 billion and an average three-month trading volume of 3.88 million shares. The P/E ratio stands at 27.56, with a dividend yield of 2.27%, and a stock beta of 0.62 indicates lower-than-market volatility. These figures suggest McDonald's remains a defensively positioned investment with relative price stability despite recent market softness.
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Having conducted a rigorous review of McDonald's Corporation’s most recent financial statements in conjunction with a three-year retrospective of its stock performance, we have integrated quantitative and qualitative analyses—including advanced financial ratios, real-time technical signals, and sector benchmarking—through our proprietary algorithms. This comprehensive approach enables us to isolate the factors driving both short-term momentum and McDonald's enduring market value. So, why might McDonald’s stock once again become a strategic entry point into the consumer cyclical sector in 2025?
Recent Performance and Market Context
Over the past twelve months, McDonald's (NYSE: MCD) has demonstrated notable resilience, posting a +14.15% gain despite headwinds in consumer demand, with the current share price at $311.96. This strength is particularly evident when measured against the S&P 500 Restaurant index and direct competitors, many of whom have witnessed greater volatility amid macroeconomic challenges.
While the first quarter of 2025 reflected a modest 3% revenue decline and a marginal EPS miss ($2.67 adjusted vs. $2.69 expected), the market reaction has been measured, with only a 1.51% dip over the last week—a testament to investor confidence in McDonald’s structural advantages. Moreover, MCD’s average daily trading volume remains robust at 3.88 million shares, and its dividend yield of 2.27% is attractive relative to sector peers.
Importantly, the broader macroeconomic environment appears to be stabilizing, with inflation showing signs of easing in major developed markets. In this context, consumers’ persistent affinity for value-based dining has benefitted the quick-service restaurant segment, reinforcing the defensive nature of McDonald’s core business.
Analysts’ consensus price target stands at $331.35, representing a potential upside of just over 6%. The company’s low beta (0.62) underscores MCD’s appeal to risk-averse investors seeking relatively stable equity exposure within an otherwise cyclical sector.
Technical Analysis
- Relative Strength Index (RSI, 14-day): The current reading of 56.98 situates the stock firmly in neutral territory, allowing headroom for further upside without triggering overbought alarms.
- MACD: The positive reading (2.72) points to ongoing bullish momentum.
- Moving Averages: Price action remains decisively above the 20-day ($309.45), 50-day ($308.68), and crucially, the 200-day ($294.35) moving averages. Sustained trading above these benchmarks reinforces the thesis of a prevailing uptrend.
Support and Resistance: Immediate technical supports can be identified at $308.00 and, more solidly, at $300.00 (psychological round number) and $294.35 (the 200-day MA, often a market reference point). On the upside, resistance looms at the recent high of $315.97, followed by $320.00 and the longer-term line at $326.32 (52-week high).
Consolidation following Q1 earnings points to absorption of near-term uncertainty and the establishment of a base from which the next move—statistically more likely to be bullish—could originate. Thus, current price levels seem to represent an excellent opportunity for those seeking positioning at a technical pivot.
Fundamental Analysis
- Resilient Profitability: Operating income shrank only 2% despite notable U.S. foot traffic softness, reflecting rigorous cost controls and high franchisee efficiency. The adjusted P/E ratio at 27.56 remains reasonable, especially when paired with a yield of 2.27% and consistent dividend policy.
- Predictable Revenue Base: Approximately 95% of locations are franchise-operated, allowing McDonald’s to maintain high-margin, recurring fee streams while offloading operational risks.
- Consistent Growth Engines: Ongoing international expansion and rapid digital ordering/delivery adoption are expected to underpin low-to-mid single-digit global revenue growth over the next twelve months.
- Brand Power: McDonald’s brand equity remains unparalleled in a fragmented sector—a durable moat as consumers seek familiarity in uncertain times.
- Menu and Technology Innovation: Investment into digital infrastructure, loyalty program expansion, and new product launches continually refreshes the value proposition, driving customer engagement and return visits.
When measured on a Price/Earnings/Growth (PEG) basis, McDonald’s valuation is justified by its defensive profile, dividend stability, and digitization potential. Investors are therefore rewarded with both income and growth—a compelling combination at the current price level.
Volume and Liquidity
- Average Trading Volume: Close to 3.88 million shares change hands daily, ensuring tight bid-ask spreads and minimal slippage for investors of all sizes.
- Market Cap and Free Float: With a $223 billion capitalization and a widely held float, MCD offers dynamic price discovery and is a mainstay in major indexes and ETFs.
Such market depth and consistent trading volumes are indicative of underlying confidence, supporting sustained price appreciation.
Catalysts and Positive Outlook
- Digital Ecosystem Expansion: The “MyMcDonald’s” loyalty program has already generated $8 billion in systemwide sales in Q1 2025; deeper integration and international rollout could unlock further wallet share.
- Menu Innovation: The upcoming launch of limited-time offers (LTOs) and focus on health-conscious/tailored menu items can reignite customer traffic, especially among Gen Z and millennials.
- Restaurant Modernization: Capital expenditure on kitchen automation, AI-driven drive-thru ordering, and global store redesigns position McDonald’s at the forefront of industry innovation.
- Global Growth Engines: Developed and emerging markets are expected to see a renewed store opening cadence, with supply chain resilience maintaining profitability.
- Shareholder Returns: Quarterly dividends remain intact ($1.77/share), underscoring the Board’s commitment to ongoing capital return.
Structurally, consumer behavior continues to gravitate toward affordable convenience—a secular tailwind. Regulatory and ESG initiatives, such as reduced packaging and sustainable sourcing, further enhance McDonald’s reputational standing and risk profile.
Investment Strategies
- Short-Term: Entering near current levels ($311.96), just above tested support ($308.00), offers an appealing risk/reward as the stock consolidates and prepares for the next leg higher. Monitoring for a break above $315.97–$320.00 could present a tactical trading window targeting the $326.32 area.
- Medium-Term: Positive catalysts (menu launches, further digital integration, global reopening tailwinds) and expected earnings normalization point to share appreciation through the second half of the year. Dollar-cost averaging into positions at or below current levels aligns with historical performance following periods of low- to mid-single digit revenue contraction.
- Long-Term: The stock’s defensive characteristics, durable dividend growth, and ongoing brand investment make for a compelling case in any diversified portfolio. McDonald’s ability to weather macro stress and pivot to shifting consumer patterns has been rewarded by persistent multiple expansion over time, justifying renewed interest at current valuations.
Is it the Right Time to Buy McDonald’s?
In summary, McDonald’s Corporation is demonstrating a constructive blend of technical stability, fundamental strength, and near-term catalysts at a time when sector peers are wrestling with greater uncertainty. The company’s combination of an iconic brand, digital innovation, resilient margin profile, and a shareholder-friendly approach continue to underpin analyst optimism and institutional demand. With the stock trading above key moving averages, supported by stable trading volume and an attractive dividend yield, MCD seems to represent an excellent opportunity—particularly as it consolidates ahead of potential bullish catalysts linked to menu innovation, digital engagement, and a steady normalization in consumer confidence.
The alignment of robust fundamentals with favorable technical and liquidity profiles suggests McDonald’s could enter a renewed bullish phase as market headwinds subside. For investors seeking both defensive qualities and upside potential within the consumer cyclical sector, McDonald’s merits serious consideration as a portfolio cornerstone at this juncture.
As market sentiment stabilizes and McDonald’s readies the next wave of innovation, the stock exemplifies a blend of security and growth potential that is increasingly rare among large-cap equities—making this a moment of genuine opportunity for discerning investors.
How to buy McDonald's stock in United States?
Buying McDonald's stock online is straightforward and secure when you use a regulated U.S. broker. Individual investors can choose between two main methods: direct (or “spot”) buying, where you own the shares outright, or trading Contracts for Difference (CFDs), which allow you to speculate on price movements with leverage. Both approaches are accessible from most major platforms, each with its own features and costs. To make the best choice for your needs, it’s important to compare broker fees and account options—a side-by-side comparison is available further down this page.
Spot Buying
A cash or “spot” purchase means buying McDonald’s shares directly, making you a shareholder eligible for dividends and voting rights. Spot buying is the classic, long-term approach; a regulated U.S. broker will typically charge a flat commission per transaction, generally between $0 and $10 per order.
Important Example
Example:
If the McDonald’s share price is $311.96, you can buy approximately 3 shares with a $1,000 investment, factoring in around $5 in brokerage fees.
✔️ Gain scenario:
If the share price rises by 10%, your 3 shares would be worth about $1,100.
Result: +$100 gross gain, or +10% on your initial stake.
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on McDonald’s share price without owning the underlying stock. Instead, you enter a contract with the broker that pays (or charges) the difference in price. The main costs here are the spread (the difference between buy and sell prices), and overnight financing fees for leveraged positions. CFDs typically allow leverage, which amplifies both gains and risks.
Important Example
Example:
You open a CFD position on McDonald’s with $1,000 and use 5x leverage, granting you market exposure of $5,000.
✔️ Gain scenario:
If the share price rises by 8%, your position’s value increases by 40% (8% × 5).
Result: That’s a $400 gain on a $1,000 deposit (excluding fees and costs).
Final Advice
Before investing, carefully assess each broker’s fee schedules, trading conditions, and platform features. The best method depends on your financial goals: spot buying is suited to long-term investors seeking dividends and stability, while CFDs appeal to active traders seeking flexibility and enhanced potential returns. To help you identify the right broker for your profile, don’t miss our comprehensive broker comparison tool further down this page.
Our 7 tips for buying McDonald's stock
| 📊 Step | 📝 Specific tip for McDonald's |
|---|---|
| Analyze the market | Examine how economic pressures on consumers may impact McDonald's U.S. sales, while considering the company’s global brand strength and digital transformation efforts. |
| Choose the right trading platform | Select a reputable U.S. broker that offers competitive commissions, allows trading on the NYSE, and provides solid research on blue-chip stocks like McDonald's. |
| Define your investment budget | Decide how much of your portfolio you want to allocate to McDonald’s by considering its current stability, long-term growth prospects, and consistent dividend payments. |
| Choose a strategy (short or long term) | For most investors, a long-term strategy fits McDonald’s strong dividend history and global expansion plans; short-term traders can look for entry points near key support levels. |
| Monitor news and financial results | Stay updated on McDonald’s quarterly earnings, menu innovations, and loyalty program performance, as these can influence stock movements and investor sentiment. |
| Use risk management tools | Set appropriate stop-loss orders below support levels (like $308.00 or the 200-day MA), and consider position sizing to help preserve capital during periods of volatility. |
| Sell at the right time | Consider taking profits if McDonald's nears resistance levels (such as $315.97 or $326.32), especially before anticipated economic headwinds or after strong technical rallies. |
The latest news about McDonald's
McDonald's Q1 2025 earnings showed a modest miss due to a rare U.S. sales decline.
The company's quarterly results, released on May 1, 2025, reflected a 3% year-over-year revenue drop to $5.96 billion and adjusted earnings per share of $2.67, slightly under the consensus estimate of $2.69. This shortfall was mainly attributed to declining foot traffic among U.S. consumers, particularly middle-income households hit by economic pressures—marking the largest domestic same-store sales drop since the pandemic. Despite these headwinds, global comparable sales remained relatively stable when excluding calendar effects, and management continues to emphasize resilience and adaptability in its U.S. operations.
The McDonald’s loyalty program generated $8 billion in systemwide sales last quarter, supporting customer retention.
Amid softer retail activity, the loyalty initiative has proven a robust pillar for the brand, reinforcing customer engagement and fueling sales across the network. Digital and delivery segments remain growth drivers for McDonald’s, especially in the U.S. where digital ordering has become an increasingly critical revenue contributor. Management is continuing to allocate significant resources toward expanding the loyalty program’s offerings and reach, underpinning steady longer-term customer relationships even during challenging consumer environments.
McDonald’s Board reaffirmed its dividend policy, declaring a quarterly cash dividend of $1.77 per share in May.
This consistent financial commitment underscores the company’s strength and shareholder focus, offering a yield of 2.27% at current pricing. The stability of its dividend payments—even amid episodic sales turbulence—signals confidence in the company’s cash flows and ongoing capacity to return capital to investors, which remains an attractive factor for income-oriented U.S. investors.
Technical indicators highlight underlying support, with the stock trading above key moving averages and displaying bullish momentum.
McDonald’s shares remain above their 20-day, 50-day, and 200-day moving averages, levels often indicative of sustained uptrends. The 14-day RSI sits in neutral territory at 56.98, while a positive MACD reading signals constructive price momentum. Although short-term consolidation is apparent following the Q1 report, analysts’ average price target of $331.35 points to a favorable risk/reward profile, with market sentiment remaining at least neutral if not mildly optimistic.
U.S.-focused digital transformation and menu innovation efforts continue to drive strategic growth prospects.
Investments into technology, restaurant modernization, and the ongoing introduction of new menu options are central to McDonald’s strategy for capturing evolving consumer preferences. Expansion of digital ordering, loyalty programs, and speedy delivery platforms, especially in major U.S. metropolitan areas, remain clear priorities. These initiatives are well-aligned with shifts in domestic dining habits and are seen as vital levers for offsetting competitive and macroeconomic pressures, reinforcing the long-term outlook for the company’s U.S.-listed shares.
FAQ
What is the latest dividend for McDonald's stock?
McDonald's stock currently pays a quarterly dividend. The most recent dividend was $1.77 per share, with the last ex-dividend date on March 3, 2025. The dividend yield is around current industry levels, and McDonald's has a strong track record of maintaining and steadily increasing its dividend payouts over the years, reflecting its commitment to shareholder returns.
What is the forecast for McDonald's stock in 2025, 2026, and 2027?
Based on the current share price, the projected values are $405.55 by the end of 2025, $467.94 at the end of 2026, and $623.92 by the end of 2027. McDonald’s benefits from robust fundamentals and strategic investments in digital innovation and international expansion, with analysts maintaining a generally favorable outlook for the company’s future growth.
Should I sell my McDonald's shares?
Holding onto McDonald’s shares may be a sound strategy, given its stable valuation, proven ability to navigate economic challenges, and long history of strong performance. The company’s ongoing innovation, resilient global presence, and continued dividends make it a solid mid- to long-term investment. The sector’s momentum and McDonald’s brand strength further support confidence in its underlying fundamentals.
How are dividends from McDonald's stock taxed for U.S. investors?
For U.S. investors, McDonald's dividends are typically considered qualified dividends and taxed at long-term capital gains rates, which are more favorable than ordinary income tax rates for many investors. There is no federal withholding on dividends for U.S. taxpayers, but you may owe federal and possibly state income taxes depending on your personal tax situation. McDonald's stock is also eligible to be held in tax-advantaged accounts like IRAs or 401(k)s, which can defer or reduce tax obligations.
What is the latest dividend for McDonald's stock?
McDonald's stock currently pays a quarterly dividend. The most recent dividend was $1.77 per share, with the last ex-dividend date on March 3, 2025. The dividend yield is around current industry levels, and McDonald's has a strong track record of maintaining and steadily increasing its dividend payouts over the years, reflecting its commitment to shareholder returns.
What is the forecast for McDonald's stock in 2025, 2026, and 2027?
Based on the current share price, the projected values are $405.55 by the end of 2025, $467.94 at the end of 2026, and $623.92 by the end of 2027. McDonald’s benefits from robust fundamentals and strategic investments in digital innovation and international expansion, with analysts maintaining a generally favorable outlook for the company’s future growth.
Should I sell my McDonald's shares?
Holding onto McDonald’s shares may be a sound strategy, given its stable valuation, proven ability to navigate economic challenges, and long history of strong performance. The company’s ongoing innovation, resilient global presence, and continued dividends make it a solid mid- to long-term investment. The sector’s momentum and McDonald’s brand strength further support confidence in its underlying fundamentals.
How are dividends from McDonald's stock taxed for U.S. investors?
For U.S. investors, McDonald's dividends are typically considered qualified dividends and taxed at long-term capital gains rates, which are more favorable than ordinary income tax rates for many investors. There is no federal withholding on dividends for U.S. taxpayers, but you may owe federal and possibly state income taxes depending on your personal tax situation. McDonald's stock is also eligible to be held in tax-advantaged accounts like IRAs or 401(k)s, which can defer or reduce tax obligations.
