McDonald’s Corp. shares climbed Tuesday, rising 2.27% to $276.80, adding $6.15 as the fast-food giant benefited from a broader rally among traditional blue-chip stocks even as its own earnings report remains a week away.

The gains came as part of a strong session for the Dow Jones Industrial Average, which climbed alongside several consumer-facing companies reporting strong quarterly results, even as investors positioned ahead of what is expected to be a closely watched earnings report from McDonald’s on Aug. 4.

A Key Earnings Date on the Horizon

McDonald’s is scheduled to announce its second-quarter 2026 earnings before the market opens on Tuesday, Aug. 4. Ahead of that report, analysts expect the company to post a profit of roughly $3.33 to $3.34 per share on a diluted basis, up between 4.4% and 4.7% from the $3.19 per share reported in the same quarter a year earlier. Consensus revenue estimates for the quarter stand near $7.14 billion to $7.16 billion, reflecting growth of approximately 4.3% to 4.6% year over year.

Expectations for a Slowdown in Comparable Sales

Despite the anticipated earnings growth, analysts are bracing for a notable deceleration in one of the company’s most closely watched metrics heading into the report. Management has signaled a meaningful deceleration in comparable sales from the first quarter’s 3.9% pace, driven largely by a tough comparison against last year’s Minecraft-themed Happy Meal promotion, which drove unusually strong performance in April 2025. KeyBanc has projected U.S. same-store sales growth of just 0.5% for the quarter, well below the broader consensus estimate of 1.1%, citing softer trends across the broader restaurant industry.

Low-Income Consumer Pressure Remains a Concern

A persistent theme in recent analyst commentary has centered on how McDonald’s core customer base is responding to ongoing economic pressures. Recent executive commentary and transaction data indicate a structural pullback from households earning under $45,000, suggesting that the brand’s historical positioning as a value leader is not fully insulating it from broader shifts in discretionary spending. Consumer confidence has weakened amid persistent inflation and elevated gas prices, squeezing the lower-income households that form a core part of McDonald’s customer base.

A Difficult Stretch for the Stock in 2026

Tuesday’s gains offer a bright spot in what has otherwise been a challenging year for McDonald’s shareholders. The stock is down roughly 7.9% since the beginning of the year, trading well below its 52-week high of $341.06 set in February 2026, a decline of nearly 20% from that peak. The stock has also touched a new 52-week low in recent weeks, driven by weak customer traffic and rising costs.

A Wave of Price Target Cuts From Wall Street

Several major Wall Street firms have trimmed their price targets on McDonald’s stock in the weeks leading up to the earnings report, even while largely maintaining bullish overall ratings. UBS analyst Dennis Geiger lowered the firm’s price target on McDonald’s to $340 from $365 while keeping a Buy rating on the shares. Other firms followed a similar pattern, including BTIG, which cut its target to $350 from $370, Citi, which lowered its target to $335 from $375 ahead of the earnings report, Deutsche Bank, which reduced its target to $325 from $350, and Evercore ISI, which lowered its target to $320 from $350. Despite the wave of target reductions, the average analyst rating on the stock has remained a “Buy,” with a 12-month price target implying meaningful upside from recent trading levels.

Other Headwinds Cited by Analysts

Beyond consumer spending pressures, analysts have flagged additional challenges weighing on McDonald’s outlook heading into the report. Ongoing boycotts related to Middle East conflicts continue to negatively impact the company’s International Developmental Licensed segment, with management signaling that these regional pressures will likely persist through the remainder of the fiscal year. Sector-specific minimum wage hikes in key domestic markets, particularly California, are also forcing defensive pricing strategies that risk further alienating price-sensitive customers.

Focus Areas for the Upcoming Report

Investor attention heading into next week’s report is expected to center on several specific areas of McDonald’s business beyond the headline sales and earnings figures. Investor attention will center on margin resilience, the performance of the new McValue platform, and early results from the McCafé beverage expansion, according to one earnings preview. U.S. company-operated margins have underperformed expectations in recent quarters, prompting management focus on operational improvements and potential refranchising strategies.

A Long Track Record of Dividend Growth

Despite the near-term challenges, McDonald’s has maintained one of the most consistent dividend track records in the restaurant industry, a factor some investors point to as a stabilizing force for the stock. The company’s board of directors declared a quarterly cash dividend of $1.86 per share, payable on Sept. 16, 2026, continuing a streak that reflects 50 consecutive years of dividend increases, a run that management has pointed to as demonstrating the company’s long-term financial stability even amid near-term operational headwinds.

Full-Year Targets Remain in Place

Despite the anticipated near-term deceleration in comparable sales, McDonald’s has continued to stand by its broader financial targets for the year. Full-year 2026 financial targets have been reaffirmed by the company, with foreign currency expected to contribute between 20 and 30 cents to earnings per share for the year, alongside continued focus on expanding the company’s value platform and beverage offerings, including a new partnership tied to the FIFA World Cup.

With McDonald’s earnings report now just about a week away, investors are likely to treat the coming days as a positioning window ahead of what could be a pivotal update on how the company’s core low-income customer base and value-menu strategy are performing amid a challenging consumer spending environment. Given the string of price target reductions from major Wall Street firms even as overall ratings remain positive, the Aug. 4 report is expected to serve as an important test of whether McDonald’s can demonstrate margin resilience and stabilizing traffic trends, or whether the concerns already reflected in analysts’ lowered price targets will be validated by the company’s actual results.

The charge reflected higher engineering costs associated with delivering two delayed US presidential aircraft in 2028 and contributed to a second-quarter net loss of $428 million.

The aircraft maker’s shares rose 5% in midday trading despite the Q2 loss, as investors focused on improving production and stronger cash flow. Its core loss of 76 cents per share was wider than analysts’ estimate of a 30-cent loss but narrower than the $1.24-per-share loss recorded a year earlier, according to LSEG data.

Boeing generated $631 million in free cash flow, reversing a $200 million outflow in the second quarter of 2025, partly due to stronger-than-expected customer payments. The company maintained its full-year free cash flow forecast of $1 billion to $3 billion, which would mark its first positive annual result since 2023, as it ramps up production of its best-selling 737 MAX jets.

Boeing also lifted capital spending year-on-year in the quarter, mainly to expand 787 production in South Carolina and military jet output near St. Louis, Missouri. It is separately working to deliver two 747-8 jets as Air Force One under a $3.9 billion fixed-price 2018 contract — now four years late and over $1 billion above budget. President Donald Trump has meanwhile been using a Qatari-donated 747-8 in the role, though he said this month it would soon be pulled for upgrades over security concerns, according to a Reuters report.

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Also Read | Coca-Cola shares surge 7% as earnings beat lifts outlook
Meanwhile, Boeing is raising monthly production of its best-selling 737 MAX jets from 42 to 47 aircraft, a crucial step in its financial recovery after years of crises left the company with nearly $26 billion in net debt and damaged its reputation.
The aircraft aims to increase output to 52 jets a month by early next year and eventually reach 57. CEO Kelly Ortberg said hitting the final target would require stronger supplier performance and a smooth ramp-up in key areas, including 737 wing assembly.
For the 787, Ortberg said GE Aerospace’s engine deliveries remain the biggest constraint on Boeing’s goal of producing 10 aircraft a month. Boeing is working with GE on a recovery plan after engine shipments fell behind schedule during the first half.

President Donald Trump defended his administration’s tariffs on Tuesday ahead of November’s midterm elections, telling “Fox & Friends” in an interview that they are bringing “a fortune” into the United States. 

Trump made the remark as his administration is set to impose new tariffs of 10% and 12.5% on imports from 60 trading partners beginning Friday as a temporary global tariff expires. 

“Are you worried that the tariffs that you put forward over the last couple of days will hurt the economy as they adjust in bringing manufacturing home?” the president was asked by host Brian Kilmeade. 

“No, because it’s bringing hundreds of billions of dollars,” Trump responded. “I was at General Motors yesterday. They have the best year. They have the most trucks, the most cars. The tariffs have saved General Motors. What I’ve done to the auto business, what I’ve done to the chip business. We have chip companies now making, building hundreds of billions of dollars worth of chip plants in Arizona.” 

TRUMP ADMINISTRATION UNVEILS NEW TARIFFS ON 60 TRADING PARTNERS AS TEMPORARY DUTIES EXPIRE 

President Donald Trump delivers remarks at General Motors’ Milford Proving Ground in Milford, Michigan, on Monday, July 27, 2026. (Brendan Smialowski/AFP via Getty Images)

“We are going to end up with 40 to 50% of the chip business from nothing in a year and a half from now,” the president added. 

Trump also said, “It’s a shame that I have to go a harder way for the tariffs because the Supreme Court, in a very close decision, you know, ruled against me.” 

The Supreme Court in February had struck down Trump’s “reciprocal” tariffs of 10% to 50% that were imposed last year. In response, Trump implemented a temporary 10% global tariff under Section 122 of the Trade Act of 1974 that expires at 12:01 a.m. ET Friday. 

The Office of the U.S. Trade Representative announced Thursday that the new tariffs, imposed under Section 301 of the Trade Act of 1974, will take effect immediately after the temporary duties expire. 

TRUMP UNVEILS PHASED TARIFFS ON GENERIC DRUGS TO BOOST US PRODUCTION 

President Donald Trump delivers remarks on reciprocal tariffs during an event in the Rose Garden in 2025. (Brendan Smialowski/AFP via Getty Images)

Canada, Mexico, India and the United Kingdom are among the trading partners that will face a 10% tariff. Taiwan and the European Union, meanwhile, are slated to face a 12.5% tariff. 

“Now I have other ways of doing the same thing. But it’s a more cumbersome process, you know, the way of doing it. But the tariffs have made this country a fortune,” Trump said. “It made the country rich. And I stopped eight wars, I would say five of them because of tariffs. The threat of tariffs stopped India and Pakistan from going into a nuclear war. The threat of tariffs stopped numerous other countries from going to war. These tariffs — it’s the greatest thing. And only the really smart people or the people that are nonpolitical and that get it, talk about it. The Democrats know how good it’s been.” 

“We have the hottest car business. We’re right now building more car plants than at any time in our history. Toyota just left Mexico. They’re building, they just announced, they’re building a $12 billion worth of plants in the United States,” Trump said. “All because they want to avoid tariffs. They have no tariffs if they build their product here.” 

The Trump administration has decided not to extend the U.S.-Mexico-Canada Agreement (USMCA) and will instead pursue independent trade deals with Canada and Mexico. 

President Donald Trump makes an announcement on American nuclear innovation in the Oval Office at the White House on July 24, 2026, in Washington. (Eric Lee/Getty Images)

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When asked Tuesday if he was looking to update the USMCA, Trump said: “I don’t care. I mean I don’t really want to, I’d rather have, I’d rather be independent. Here’s the thing. Mexico and Canada need us. We don’t need them. The deal is important for them. It’s not important for us.” 

FOX Business’ Michael Sinkewicz, Eric Revell, Edward Lawrence and Sophia Compton contributed to this report.

ATLANTA — Shares of The Coca-Cola Co. jumped more than 6% in morning trading Tuesday after the beverage giant reported second-quarter results that exceeded Wall Street expectations and raised its full-year guidance, fueled by strong global volume growth and marketing tied to the FIFA World Cup.

Coca-Cola stock rose $5.67, or 6.74%, to $89.74 as of 11:09 a.m. EDT, hitting a fresh 52-week high during the session. The move came after the company posted net revenues of $13.4 billion, up 7% from a year earlier, and organic revenues (a non-GAAP measure) grew 6%. Adjusted earnings per share rose 11% to 97 cents, beating the consensus estimate of 93 cents. Reported earnings per share climbed 16% to $1.03.

Global unit case volume increased 5%, led by gains in India, China, the United States and Brazil. Trademark Coca-Cola volume grew 5%, while Coca-Cola Zero Sugar posted 16% growth. Operating income rose 9% to $4.7 billion, with the operating margin expanding to 34.9% from 34.1% a year ago. Comparable operating margin improved to 35.6%.

“We delivered another strong quarter by staying close to the changing needs of our consumers and customers,” said Henrique Braun, chief executive officer of The Coca-Cola Company. The company said it continued to gain value share in total nonalcoholic ready-to-drink beverages.

Concentrate sales rose 4%, trailing unit case volume by one point due to the timing of shipments. Price/mix contributed 2% to organic revenue growth. Asia Pacific was the fastest-growing region by volume, up 8%.

Coca-Cola raised its full-year 2026 outlook. It now expects organic revenue growth of approximately 5%, at the high end of its prior 4% to 5% range. Comparable currency-neutral earnings per share growth excluding acquisitions and divestitures is projected at 7% to 8%, up from 6% to 7%. Overall comparable EPS growth is expected at 9% to 10%, compared with the previous 8% to 9% range, incorporating an approximate 3% currency tailwind and a 1% headwind from acquisitions and divestitures. Free cash flow is forecast at about $12.4 billion.

Year-to-date through the first six months, net operating revenues grew 9% to $25.9 billion. Cash flow from operations reached $7.5 billion, and free cash flow totaled $6.9 billion. The company ended the period with $12.9 billion in cash and cash equivalents and $37.0 billion in long-term debt.

The strong results were supported by brand activations around the FIFA World Cup 2026, which management described as a powerful marketing catalyst that helped drive Trademark Coca-Cola volume and consumer engagement. Innovation and revenue management initiatives also contributed, with the company balancing volume growth and premiumization efforts.

Coca-Cola Zero Sugar’s double-digit performance highlighted ongoing success in the zero-sugar segment, while the broader portfolio benefited from local market activations and tailored product offerings. The company gained value share overall, though it noted some regional variations, including share dynamics in Asia Pacific where gains in Japan and China were offset by pressure in India.

Investors reacted positively to the combination of top- and bottom-line beats, margin expansion and the upward revision to guidance. The stock had already advanced earlier in the year and entered the earnings report near multi-month highs. The sharp rise on Tuesday pushed shares into new 52-week territory, reflecting confidence in the company’s ability to navigate a dynamic consumer landscape while generating robust cash flow.

Braun, who has emphasized staying attuned to evolving consumer preferences, pointed to the company’s disciplined approach in identifying and scaling local brands that can become larger growth engines. Outgoing leadership had previously noted that three-quarters of Coca-Cola’s billion-dollar brands sit outside its legacy soft-drink business, with examples such as the Mexico-based dairy brand Santa Clara reaching that threshold through targeted investment.

The results extend a streak of quarters in which Coca-Cola has topped analyst estimates. Management continues to focus on affordability, innovation and digital execution while managing input costs and currency impacts. The underlying effective tax rate is expected to remain at 19.9%.

Analysts and investors will monitor upcoming volume trends, the sustained impact of World Cup-related promotions and the contribution from emerging brands as the company progresses through the second half of the year. With a market capitalization near $385 billion following the surge, Coca-Cola remains one of the largest consumer staples companies, known for its global distribution network and portfolio of more than 200 brands.

The quarterly performance underscored the resilience of demand for sparkling soft drinks and other nonalcoholic beverages in key markets, even as consumers navigate economic pressures in some regions. Pricing actions and favorable product mix helped offset any softness, while concentrate sales timing differences were described as temporary.

Coca-Cola’s shares have delivered solid total returns over the past year, supported by consistent dividend growth and share repurchases alongside operational execution. The latest guidance raise reinforces expectations for continued mid-single-digit organic revenue growth and high-single to low-double-digit earnings expansion on a comparable basis.

Trading volume was elevated as the market digested the report and the accompanying conference call. The stock’s advance stood out amid broader market conditions, highlighting investor preference for defensive names with clear growth catalysts and strong free-cash-flow generation.

Looking ahead, Coca-Cola plans to continue investing in marketing, innovation and system capabilities while returning capital to shareholders. The raised free-cash-flow target of approximately $12.4 billion provides additional flexibility for dividends, buybacks and strategic initiatives. The company’s long track record of navigating consumer shifts and competitive dynamics positions it to capitalize on opportunities in both developed and emerging markets through the remainder of 2026 and beyond.