McDonald's Corporation (NYSE:MCD) is set to announce its quarterly earnings on February 11, 2026, before the market opens. Analysts predict an earnings per share (EPS) of $3.04 and revenue of approximately $6.83 billion. McDonald's, a global fast-food giant, is known for its extensive menu and widespread presence. It competes with other major chains like Burger King and Wendy's.
New York Life Investment Management LLC recently reduced its stake in McDonald's by 9.8%, now holding 96,917 shares valued at about $29.45 million. This move comes as McDonald's is rated as a Buy, with its fiscal year 2026 expectations factored into its valuation. The company's strong free cash flow generation supports its defensible valuation.
Other institutional investors have adjusted their positions in McDonald's. WD Rutherford LLC increased its holdings by 1.0%, while Redhawk Wealth Advisors Inc. boosted its position by 1.4%. Twin Capital Management Inc. acquired a new stake, purchasing 1,585 shares valued at approximately $482,000. These changes reflect varying investor strategies in response to McDonald's market performance.
McDonald's revenue growth is expected to be driven by ticket sales rather than volume increases, as lower-income consumer traffic remains under pressure. Despite these challenges, McDonald's margins are anticipated to remain stable due to its franchised business model. However, structural cost pressures and increased capital expenditures for the 'Accelerating the Arches' initiative may limit margin expansion.
McDonald's has a price-to-earnings (P/E) ratio of 27.58, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 8.85, and the enterprise value to sales ratio is around 10.88. The company's earnings yield is approximately 3.63%, and it has a unique capital structure with a negative debt-to-equity ratio of -25.81. The current ratio is 1, showing balanced current assets and liabilities.
