McDonald's Lifts Dividend 4% as Analysts Split on Valuation After Earnings

McDonald's rewarded shareholders with a 4% bump to its quarterly cash dividend, raising the payout to $1.93 per share, even as the burger giant disclosed a slight retreat in its home market. The announcement came alongside third-quarter 2026 results published Wednesday, which showed global comparable sales ahead 1.5% while US comparable sales slipped 0.2%.

Systemwide revenue edged up 1% to $7.16 billion. Diluted earnings per share came in at $3.51, or $3.57 once one-time charges booked this year are stripped out.

Price Targets Move, Ratings Diverge

The earnings release triggered a wave of revisions on Thursday, with seven research houses lifting their price targets. RBC Capital raised its target to $300 from $285 while keeping a "Sector Perform" rating. Deutsche Bank reaffirmed its buy recommendation and held its $306 target. Two other firms each pushed their targets to $280 without touching their "Neutral" and "Market Perform" ratings, and one more house had already moved its target to $305 from $280 a day earlier, maintaining a buy call.

Not everyone turned more bullish. Freedom Broker downgraded the stock to Hold from Buy on Thursday and trimmed its target to $298 from $305, citing valuation after the share price rally that followed the quarterly report. The stock added 0.2% on Friday to close at €248.40.

Value Push Extends Into 2027

Management is leaning on affordability to revive US momentum. CEO Chris Kempczinski has launched an eight-week test of new value offerings across 1,900 US restaurants, pairing mix-and-match deals with fixed-price bundles. The most popular formats are slated for a nationwide rollout in 2027, and further low-cost package deals are planned for the US next year.

Capital spending plans were left untouched in the quarterly filing submitted Thursday. McDonald's still expects roughly $3.7 billion in capital expenditures for 2026 and about 2,500 new restaurant openings worldwide, of which some 700 will land in the US and its company-operated international markets.

Pricing Algorithms Draw Political Scrutiny

The company's pricing practices have also caught the attention of lawmakers. Senator Elizabeth Warren and four other members of Congress sent Kempczinski a letter on Monday, according to Reuters, seeking answers on algorithmic pricing tools. They requested a response by November 16.