Royal Bank Of Canada Cuts McDonald’s (NYSE:MCD) Price Target to $285.00

McDonald’s (NYSE:MCD) had its price objective lowered by Royal Bank Of Canada from $290.00 to $285.00 in a research note released on Thursday morning, MarketBeat Ratings reports. Royal Bank Of Canada currently has a sector perform rating on the fast-food giant’s stock.

MCD has been the topic of a number of other reports. Wells Fargo & Company reduced their price target on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a report on Thursday, July 16th. Jefferies Financial Group reiterated a “buy” rating and set a $325.00 target price on shares of McDonald’s in a research report on Thursday. KeyCorp reissued an “overweight” rating on shares of McDonald’s in a report on Monday, September 21st. Piper Sandler set a $286.00 price objective on shares of McDonald’s in a research note on Tuesday, August 4th. Finally, Mizuho reduced their target price on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $300.40.

McDonald’s Trading Down 0.2%

Shares of NYSE:MCD opened at $236.57 on Thursday. The company has a market cap of $167.41 billion, a PE ratio of 19.22, a price-to-earnings-growth ratio of 2.56 and a beta of 0.41. McDonald’s has a 12-month low of $234.03 and a 12-month high of $341.75. The stock has a 50 day moving average of $262.23 and a 200 day moving average of $280.76.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The firm had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. During the same period in the prior year, the company posted $3.19 earnings per share. The company’s revenue for the quarter was up 3.7% compared to the same quarter last year. Equities research analysts predict that McDonald’s will post 12.86 earnings per share for the current fiscal year.

McDonald’s Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This represents a $7.72 annualized dividend and a dividend yield of 3.3%. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. McDonald’s’s dividend payout ratio is 60.44%.

Institutional Trading of McDonald’s

A number of large investors have recently made changes to their positions in the stock. Ascentis Wealth Management LLC grew its position in shares of McDonald’s by 4,008.8% during the 2nd quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock worth $22,768,000 after buying an additional 82,180 shares in the last quarter. Borer Denton & Associates Inc. raised its holdings in shares of McDonald’s by 16.9% in the second quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock valued at $3,746,000 after acquiring an additional 2,000 shares in the last quarter. HighTower Advisors LLC raised its holdings in shares of McDonald’s by 7.1% in the second quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock valued at $397,822,000 after acquiring an additional 97,060 shares in the last quarter. Peterson Wealth Services lifted its stake in McDonald’s by 3,294.5% in the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock worth $3,600,000 after acquiring an additional 11,432 shares during the period. Finally, Capital International Sarl grew its holdings in McDonald’s by 10.4% during the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock worth $19,639,000 after acquiring an additional 6,079 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s raised its quarterly dividend by nearly 4%, supporting the investment case for income-oriented shareholders. Some analysts also view the post-investor-day pullback as improving the stock’s valuation and dividend yield. McDonald’s Increased Its Dividend by Nearly 4%. How to Play MCD Stock Here.
• Positive Sentiment: The company’s NEXT strategy targets improved restaurant productivity, AI-enabled operations, stronger loyalty sales and higher margins through 2030. Management also plans new protein-focused menu items, including options aimed at consumers using GLP-1 weight-loss medications. Struggling McDonald’s pins hopes on restaurant upgrades, protein bowls and AI
• Neutral Sentiment: McDonald’s revived its Monopoly promotion with a major change, which could support engagement and customer traffic, although the announcement is unlikely to materially affect near-term earnings. McDonald’s revives its popular Monopoly game with one big change
• Negative Sentiment: McDonald’s committed approximately $8.5 billion through 2036 to franchisee support, restaurant modernization, technology and operational upgrades. Investors appear concerned that the spending will pressure cash flow and margins before the benefits arrive. McDonald’s expects inflation to keep traffic flat, shares dip after $8.5 bln capex plan
• Negative Sentiment: CEO Chris Kempczinski warned that elevated inflation and lackluster traffic may persist, particularly among lower-income consumers. That outlook undermines expectations for a quick sales recovery and has prompted multiple analysts to reduce their price targets, including Baird, JPMorgan, Oppenheimer, RBC and BTIG. McDonald’s CEO Warns Elevated Inflation Will Stick Around

About McDonald’s

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.