KeyCorp Cuts McDonald’s (NYSE:MCD) Price Target to $280.00

McDonald’s (NYSE:MCD) had its target price cut by KeyCorp from $305.00 to $280.00 in a research report sent to investors on Tuesday morning, Marketbeat Ratings reports. They currently have an overweight rating on the fast-food giant’s stock.

A number of other brokerages have also commented on MCD. Morgan Stanley dropped their price objective on shares of McDonald’s from $308.00 to $297.00 and set an “equal weight” rating on the stock in a report on Monday, September 28th. Argus dropped their price target on McDonald’s from $320.00 to $310.00 and set a “buy” rating on the stock in a research note on Wednesday, August 26th. Mizuho reduced their price objective on McDonald’s from $300.00 to $290.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. BMO Capital Markets decreased their price objective on McDonald’s from $335.00 to $310.00 and set an “outperform” rating for the company in a report on Thursday, September 24th. Finally, HSBC cut their target price on McDonald’s from $357.00 to $356.00 and set a “buy” rating on the stock in a research note on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, McDonald’s presently has a consensus rating of “Moderate Buy” and a consensus price target of $295.94.

McDonald’s Price Performance

NYSE MCD opened at $236.64 on Tuesday. McDonald’s has a one year low of $229.20 and a one year high of $341.75. The firm has a market cap of $167.46 billion, a P/E ratio of 19.22, a P/E/G ratio of 2.58 and a beta of 0.44. The stock’s 50-day moving average is $256.02 and its 200-day moving average is $274.80.

McDonald’s (NYSE:MCD) last announced its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate of $3.32 by $0.06. The firm had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business’s quarterly revenue was up 3.7% on a year-over-year basis. During the same period last year, the company posted $3.19 EPS. Equities analysts anticipate that McDonald’s will post 12.85 EPS for the current year.

McDonald’s Increases Dividend

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

Institutional Trading of McDonald’s

Several institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp raised its stake in shares of McDonald’s by 2.7% during the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock worth $10,997,789,000 after purchasing an additional 959,140 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of McDonald’s by 7.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant’s stock valued at $1,699,314,000 after buying an additional 384,762 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in McDonald’s during the second quarter worth $1,359,276,000. Arrowstreet Capital Limited Partnership raised its position in McDonald’s by 17.2% during the first quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant’s stock worth $1,130,587,000 after acquiring an additional 533,448 shares in the last quarter. Finally, Diamant Asset Management Inc. raised its position in McDonald’s by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after acquiring an additional 2,587,986 shares in the last quarter. Institutional investors own 70.29% of the company’s stock.

Key McDonald’s News

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

• Positive Sentiment: McDonald’s outperformed during a weaker broader market session, suggesting investors may be viewing the stock as a defensive consumer name. Its high-margin, approximately 98%-franchised model and strong cash generation remain important supports. Why the Market Dipped But McDonald’s Gained Today
• Positive Sentiment: BetterInvesting Magazine identified MCD as an “Undervalued Stock,” while commentary highlighted its profitability, cash flows and compressed valuation after a prolonged decline. The company’s accelerated dividend decision and new U.S. president also signal a continued focus on shareholder returns and improving domestic execution. BetterInvesting Magazine Update
• Neutral Sentiment: McDonald’s is promoting its Monopoly campaign, pickle-focused products and Chicago Marathon pickle-juice activation. These initiatives could boost traffic and brand engagement, but their direct effect on revenue and earnings is uncertain. McDonald’s Monopoly Returns
• Negative Sentiment: McDonald’s faces a proposed federal class-action lawsuit alleging its AI-enhanced pricing tool helps franchisees exchange nonpublic sales data and coordinate prices. McDonald’s denies the allegations, saying the system only recommends prices and does not set menu prices, but the case creates potential antitrust costs, reputational damage and regulatory risk. McDonald’s Sued Over AI Pricing Tool
• Negative Sentiment: Sanford C. Bernstein lowered its price target from $295 to $250 and assigned a “market perform” rating, reflecting concern about McDonald’s growth outlook. Reports also say $5 meals and other promotions have not restored customer visits, while franchisees are resisting costly restaurant upgrades connected to the company’s $8.5 billion modernization plan. McDonald’s Deals Are Not Winning Customers Back

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.