McDonald's Dividend Looks Safe Amid Modest Undervaluation

McDonald's Corp (NYSE: MCD) is set to release its second-quarter earnings report on August 4, 2026. Analysts are expecting revenues of $7.13 billion and earnings per share of $3.30.

The fast-food giant has a dividend yield of 2.73%, supported by a conservative payout ratio of 59% and a healthy 3-year dividend growth rate of 8.2%. The stock is modestly undervalued with a GF Value of $327.36, indicating a 17.3% margin of safety.

GuruFocus' proprietary rating, the GF Score, stands at 74 out of 100 for McDonald's. This reflects strong profitability and valuation metrics, but momentum remains relatively weaker. The company operates over 45,000 restaurants in more than 100 markets, generating nearly $139 billion in systemwide sales.

The upcoming earnings call is expected to shed light on consumer spending trends and progress on McDonald's strategic NEXT plan, which aims to enhance digital engagement and operational efficiency. Insiders have sold shares totaling approximately $2.4 million over the past three months, while 23 premium gurus hold MCD shares, with 14 adding and 10 trimming positions recently.