UBS Group Cuts McDonald’s (NYSE:MCD) Price Target to $340.00

McDonald’s (NYSE:MCD) had its price target trimmed by UBS Group from $365.00 to $340.00 in a report published on Monday, MarketBeat reports. The brokerage currently has a buy rating on the fast-food giant’s stock.

Other research analysts have also issued research reports about the company. KeyCorp reiterated an “overweight” rating on shares of McDonald’s in a research report on Wednesday, July 15th. Weiss Ratings downgraded McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Evercore set a $320.00 price objective on McDonald’s in a research note on Thursday, July 23rd. Robert W. Baird set a $305.00 target price on McDonald’s in a report on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 target price on McDonald’s in a report on Thursday, July 9th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $333.32.

McDonald’s Stock Down 0.6%

MCD stock opened at $271.34 on Monday. McDonald’s has a 52 week low of $260.96 and a 52 week high of $341.75. The firm has a market capitalization of $192.79 billion, a P/E ratio of 22.37, a price-to-earnings-growth ratio of 2.93 and a beta of 0.41. The company has a fifty day simple moving average of $275.42 and a two-hundred day simple moving average of $298.15.

McDonald’s (NYSE:MCD) last posted its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. The firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business’s quarterly revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the firm posted $2.67 EPS. As a group, analysts anticipate that McDonald’s will post 12.86 EPS for the current year.

McDonald’s Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a yield of 2.7%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio is presently 61.34%.

Insider Activity

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

Institutional Investors Weigh In On McDonald’s

Institutional investors and hedge funds have recently modified their holdings of the business. Beese Fulmer Investment Management Inc. grew its position in McDonald’s by 3.4% in the 2nd quarter. Beese Fulmer Investment Management Inc. now owns 58,472 shares of the fast-food giant’s stock valued at $15,806,000 after acquiring an additional 1,922 shares during the last quarter. Beacon Capital Management LLC lifted its position in shares of McDonald’s by 10.4% during the second quarter. Beacon Capital Management LLC now owns 1,044 shares of the fast-food giant’s stock worth $282,000 after purchasing an additional 98 shares during the last quarter. Westfuller Advisors LLC lifted its position in shares of McDonald’s by 140.0% during the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock worth $49,000 after purchasing an additional 105 shares during the last quarter. Family Capital Trust Co purchased a new stake in shares of McDonald’s during the second quarter valued at $453,000. Finally, Independent Solutions Wealth Management LLC boosted its stake in shares of McDonald’s by 2.1% during the second quarter. Independent Solutions Wealth Management LLC now owns 11,130 shares of the fast-food giant’s stock valued at $3,008,000 after purchasing an additional 228 shares during the period. 70.29% of the stock is owned by institutional investors.

More McDonald’s News

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

• Positive Sentiment: McDonald’s continues to offer an attractive income profile after affirming its quarterly dividend of $1.86 per share, payable Sept. 16 to shareholders of record Sept. 1. The company has increased its dividend for approximately 50 consecutive years. McDonald’s Faces Digital And Sales Concerns, Is The Stock Fully Valued?
• Positive Sentiment: Despite the recent weakness, Wall Street’s average price targets reportedly remain well above the current market price, suggesting potential upside if sales stabilize and the company executes on its strategy. McDonald’s, Oracle, and Uber Are Near 52-Week Lows
• Neutral Sentiment: McDonald’s is scheduled to report earnings on Aug. 4. Analysts expect full-year EPS of about $12.86, while recent coverage suggests earnings growth remains possible but does not identify a strong setup for a near-term earnings beat. McDonald’s Earnings Expected to Grow
• Negative Sentiment: RBC expects McDonald’s same-store-sales growth to slow in the second and third quarters, raising concerns about consumer demand and the company’s ability to sustain traffic and pricing momentum. McDonald’s Same-Store-Sales Growth Seen Slowing
• Negative Sentiment: Erste Group Bank trimmed its FY2026 EPS forecast to $12.92 from $12.98 and its FY2027 estimate to $14.15 from $14.19, maintaining a “Hold” rating. UBS has also issued a pessimistic forecast, adding to cautious sentiment. UBS Group Issues Pessimistic Forecast for McDonald’s
• Negative Sentiment: Rising beef prices are weighing on investor sentiment and could pressure restaurant margins. Additional concerns include digital-sales execution and whether McDonald’s valuation is justified given its weaker recent performance. McDonald’s Fell as Rising Beef Prices Weighed on Sentiment

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.