Fast-food chain McDonald’s (MCD) is scheduled to announce its second-quarter results on August 6. The company has been under pressure due to the impact of macro challenges and tariffs on consumer confidence and spending. However, several analysts expect MCD to deliver improved results in the quarters ahead. Wall Street expects McDonald’s to report earnings per share (EPS) of $3.15, reflecting a 6.1% year-over-year growth. Meanwhile, revenue is estimated to rise 3.5% to $6.70 billion.
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McDonald’s has been reporting deteriorating comparable sales in recent quarters. As seen in this chart from Main Street Data, MCD’s comparable sales declined by 1% in the first quarter, mainly due to weakness in the U.S. market. In fact, U.S. same-store sales fell 3.6% in Q1 2025, impacted by bad weather and a more cautious consumer. The decline in MCD’s domestic store sales marked the worst performance since the 8.7% plunge during the second quarter of 2020 due to COVID-led lockdowns.
Analysts’ Views Ahead of McDonald’s Q2 Earnings
Heading into Q2 earnings, Wells Fargo analyst Zachary Fadem stated that he has turned more constructive on the restaurant sector, pointing to improved industry trends and easing comparisons. The 5-star analyst believes that while valuation concerns and macro challenges persist, the sector’s underperformance in recent months presents selective buying opportunities as “idiosyncratic catalysts emerge in the second half.”
In particular, Fadem stated that MCD is Wells Fargo’s top idea for the quarter, with an inflection in comparable sales expected in Q2. Fadem expects McDonald’s Q2 comparable sales to inflect positively and accelerate by about 500 basis points quarter-over-quarter. He also expects the company’s EPS to gain from easing comparisons, menu innovation, and favorable foreign exchange changes. Fadem reiterated a Buy rating on MCD stock with a price target of $350.
Earlier this month, Goldman Sachs analyst Christine Cho upgraded McDonald’s stock to Buy from Hold with a price target of $345, as she expects the company to regain market share through product and marketing changes, even as pressure on middle-income consumers impacts the broader restaurant industry. Cho expects recent weakness in same-store sales trends at McDonald’s to reverse as the company leverages its scale and digital capabilities to drive traffic.
Specifically, Cho expects MCD’s same-store sales to turn positive, averaging 2% to 3% growth from Q2 2025, fueled by catalysts such as the return of snack wraps and the addition of a “daily double” burger to the company’s value menu.
AI Analyst Is Cautious on MCD Stock Ahead of Q2 Print
Interestingly, TipRanks’ AI stock analyst has assigned a Neutral rating to McDonald’s stock with a price target of $325, indicating 7.3% upside potential. TipRanks’ AI analysis indicated that MCD stock’s rating is based on strong financial performance and strategic initiatives, offset by technical indicators and valuation concerns.
Here’s What Options Traders Anticipate Ahead of McDonald’s Q2 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 3.54% move in either direction in MCD stock in reaction to Q2 results.
Is MCD a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on McDonald’s stock based on 12 Buys, 10 Holds, and two Sell recommendations. The average MCD stock price target of $340.89 indicates 12.6% upside potential from current levels.
