McDonald’s (NYSE:MCD) Stock Rating Upgraded by Freedom Capital

McDonald’s (NYSE:MCD) was upgraded by investment analysts at Freedom Capital from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Wednesday,Zacks.com reports.

Other research analysts have also issued research reports about the company. Deutsche Bank Aktiengesellschaft increased their target price on McDonald’s from $335.00 to $345.00 and gave the company a “buy” rating in a research report on Wednesday. Royal Bank Of Canada cut their price target on shares of McDonald’s from $305.00 to $295.00 and set a “sector perform” rating for the company in a report on Wednesday. Robert W. Baird reduced their price objective on shares of McDonald’s from $305.00 to $285.00 and set a “neutral” rating for the company in a research report on Wednesday. UBS Group set a $305.00 price objective on shares of McDonald’s in a report on Wednesday. Finally, BTIG Research reaffirmed a “buy” rating and set a $350.00 price objective on shares of McDonald’s in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $325.44.

McDonald’s Trading Up 0.7%

Shares of MCD stock opened at $276.05 on Wednesday. The company has a market capitalization of $196.13 billion, a P/E ratio of 22.42, a P/E/G ratio of 2.94 and a beta of 0.41. The business’s 50 day moving average is $274.14 and its two-hundred day moving average is $296.58. McDonald’s has a 12-month low of $260.96 and a 12-month high of $341.75.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a negative return on equity of 512.80% and a net margin of 31.72%.McDonald’s’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same period last year, the company earned $3.19 earnings per share. On average, research analysts predict that McDonald’s will post 12.86 earnings per share for the current fiscal year.

Insider Buying and Selling

In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 8,348 shares of company stock worth $2,355,634 over the last ninety days. Corporate insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

A number of hedge funds have recently modified their holdings of the business. Your Advocates Ltd. LLP acquired a new position in McDonald’s during the fourth quarter worth about $27,000. IFC & Insurance Marketing Inc. acquired a new stake in McDonald’s in the 4th quarter valued at about $29,000. Abound Financial LLC acquired a new stake in McDonald’s in the 4th quarter valued at about $30,000. DecisionPoint Financial LLC raised its holdings in McDonald’s by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock valued at $31,000 after acquiring an additional 97 shares during the last quarter. Finally, Entrust Financial LLC purchased a new position in McDonald’s in the 4th quarter worth approximately $31,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

McDonald’s News Roundup

Here are the key news stories impacting McDonald’s this week:

• Positive Sentiment: Quarterly profit exceeded expectations. McDonald’s reported adjusted earnings of $3.38 per share, above the $3.32 consensus estimate, while revenue rose 3.7% year over year to $7.10 billion. The earnings beat and 31.7% net margin provide support for the stock. McDonald’s posts strong second quarter profit, names new leader for US market
• Positive Sentiment: Analyst support and income appeal remain intact. BTIG reaffirmed its Buy rating with a $350 price target, while the stock’s dividend and consensus Moderate Buy view may attract investors after the recent weakness. BTIG rating reaffirmed
• Positive Sentiment: Management is taking corrective action. McDonald’s appointed a new U.S. leader and is reviewing value offers, digital promotions, restaurant workloads and marketing execution. Stronger international performance could help offset domestic softness. MCD Q2 Earnings Call Flags U.S. Execution Gaps
• Neutral Sentiment: Price targets were reduced but remain above the current level. Morgan Stanley, RBC and Baird lowered their targets to $319, $295 and $285, respectively, citing a more cautious near-term outlook. Their ratings range from Equal Weight to Neutral. Analyst price-target changes
• Negative Sentiment: U.S. growth remains the central concern. Domestic comparable sales rose only 0.8% in the second quarter, and management acknowledged that the current value menu is too complicated and that reduced digital discounts have hurt traffic. Lower-income customers are also spending less at McDonald’s. McDonald’s Looks to Fix a Value Misfire
• Negative Sentiment: Competitive pressure is increasing. Burger King is gaining U.S. sales momentum after revamping its Whopper, while McDonald’s expansion toward 50,000 restaurants is taking longer than planned because of economic conditions. Burger King’s US sales surge while McDonald’s growth flails

McDonald’s Company Profile

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.