McDonald’s Corp. (NYSE:MCD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The brokerage currently has a $131.00 price objective on the fast-food giant’s stock. Zacks Investment Research’s target price points to a potential upside of 12.42% from the company’s current price.
According to Zacks, “McDonald’s has turned itself around in the domestic market, mainly driven by its successful all-day Breakfast platform. The company is further trying to strengthen its position in the U.S. through various sales initiatives like menu innovation, introduction of value meals, efficient marketing and promotions, and improved service. Backed by these efforts, in the second-quarter 2016, McDonald’s posted positive comps for the fourth consecutive quarter in the region. The company enjoys moderate growth prospects through its exposure in the under-penetrated international markets. Moreover, the company has positive record of earnings surprises in recent quarters. Estimates too have been mostly going up ahead of McDonald’s third quarter earnings release. However, soft industry growth, macroeconomic concerns in various parts of the world along with negative currency translation remain potent headwinds.”
Several other analysts have also commented on MCD. RBC Capital Markets reiterated a “buy” rating and issued a $140.00 price target on shares of McDonald’s Corp. in a research report on Friday, July 22nd. Jefferies Group set a $115.00 price target on shares of McDonald’s Corp. and gave the company a “neutral” rating in a research report on Tuesday, July 26th. Nomura set a $129.00 price target on shares of McDonald’s Corp. and gave the company a “neutral” rating in a research report on Wednesday, July 20th. Wells Fargo & Co. reiterated a “market perform” rating on shares of McDonald’s Corp. in a research report on Wednesday, July 20th. Finally, Vetr lowered shares of McDonald’s Corp. from a “buy” rating to a “hold” rating and set a $128.73 price target on the stock. in a research report on Thursday, July 14th. Two investment analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and fourteen have assigned a buy rating to the company’s stock. McDonald’s Corp. has a consensus rating of “Hold” and an average price target of $126.12.
Shares of McDonald’s Corp. (NYSE:MCD) opened at 116.53 on Tuesday. The stock has a market cap of $99.44 billion, a PE ratio of 22.25 and a beta of 0.59. The firm has a 50-day moving average price of $116.43 and a 200 day moving average price of $122.24. McDonald’s Corp. has a 12-month low of $96.81 and a 12-month high of $131.96.
McDonald’s Corp. (NYSE:MCD) last issued its earnings results on Tuesday, July 26th. The fast-food giant reported $1.45 earnings per share for the quarter, topping the consensus estimate of $1.39 by $0.06. McDonald’s Corp. had a net margin of 18.73% and a return on equity of 97.56%. The company had revenue of $6.27 billion for the quarter, compared to analyst estimates of $6.28 billion. During the same period in the prior year, the business posted $1.26 earnings per share. The firm’s revenue for the quarter was down 3.6% compared to the same quarter last year. Equities research analysts expect that McDonald’s Corp. will post $5.56 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, September 16th. Shareholders of record on Thursday, September 1st were given a $0.89 dividend. This represents a $3.56 annualized dividend and a yield of 3.06%. The ex-dividend date of this dividend was Tuesday, August 30th. McDonald’s Corp.’s dividend payout ratio (DPR) is 68.59%.
In other McDonald’s Corp. news, Chairman Andrew J. Mckenna sold 70,000 shares of the company’s stock in a transaction dated Thursday, August 4th. The shares were sold at an average price of $118.28, for a total value of $8,279,600.00. Following the completion of the transaction, the chairman now owns 108,841 shares in the company, valued at approximately $12,873,713.48. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.28% of the stock is currently owned by company insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Carnick & Kubik Group LLC bought a new position in McDonald’s Corp. during the second quarter valued at about $426,000. Williams Jones & Associates LLC boosted its position in McDonald’s Corp. by 25.3% in the second quarter. Williams Jones & Associates LLC now owns 8,057 shares of the fast-food giant’s stock valued at $970,000 after buying an additional 1,625 shares during the period. Kentucky Retirement Systems Insurance Trust Fund bought a new position in McDonald’s Corp. during the second quarter valued at about $4,265,000. Kentucky Retirement Systems bought a new position in McDonald’s Corp. during the second quarter valued at about $8,984,000. Finally, KAMES CAPITAL plc bought a new position in McDonald’s Corp. during the second quarter valued at about $703,000. Hedge funds and other institutional investors own 69.10% of the company’s stock.
About McDonald’s Corp.
McDonald’s Corporation (McDonald’s) operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally-relevant menu of quality food and drinks sold at various price points in over 100 countries. The Company’s segments include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate.
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