McDonald’s Corporation (NYSE:MCD) Receives $333.32 Average Target Price from Analysts

McDonald’s Corporation (NYSE:MCD) has been given a consensus recommendation of “Moderate Buy” by the twenty-seven analysts that are presently covering the company, Marketbeat.com reports. Twelve investment analysts have rated the stock with a hold recommendation and fifteen have given a buy recommendation to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $331.92.

A number of research analysts recently commented on MCD shares. Wells Fargo & Company lowered their price objective on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, July 16th. Weiss Ratings downgraded McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Tigress Financial increased their price target on McDonald’s from $385.00 to $390.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of McDonald’s in a research report on Tuesday. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 price objective on McDonald’s in a research note on Thursday, July 9th.

Insider Activity

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

Institutional Trading of McDonald’s

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC lifted its holdings in shares of McDonald’s by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock valued at $2,692,000 after purchasing an additional 1,649 shares during the last quarter. Revolve Wealth Partners LLC increased its stake in McDonald’s by 2.8% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant’s stock worth $563,000 after purchasing an additional 52 shares in the last quarter. Sivia Capital Partners LLC increased its stake in McDonald’s by 11.4% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock worth $589,000 after purchasing an additional 206 shares in the last quarter. United Bank raised its holdings in McDonald’s by 6.0% during the 2nd quarter. United Bank now owns 8,102 shares of the fast-food giant’s stock worth $2,367,000 after buying an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. raised its holdings in McDonald’s by 2.5% during the 2nd quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock worth $3,780,000 after buying an additional 312 shares during the period. 70.29% of the stock is owned by institutional investors and hedge funds.

McDonald’s Stock Up 0.9%

Shares of MCD opened at $270.83 on Thursday. The firm has a market capitalization of $192.43 billion, a PE ratio of 22.33, a P/E/G ratio of 2.91 and a beta of 0.41. The firm has a 50-day moving average price of $274.88 and a 200 day moving average price of $297.69. McDonald’s has a 52-week low of $260.96 and a 52-week high of $341.75.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. The company 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%. McDonald’s’s revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the firm earned $2.67 EPS. On average, equities analysts expect that McDonald’s will post 12.86 EPS for the current year.

McDonald’s Announces Dividend

The company also recently announced 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 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s payout ratio is presently 61.34%.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: Unusually heavy call-option activity suggests some traders are positioning for upside. Investors purchased 32,245 calls, approximately 45% above the average volume of 22,241 calls.
• Positive Sentiment: Technical analyst Jay Woods said McDonald’s chart is beginning to form a potential buy signal, which could attract bargain hunters after the stock’s recent correction. CNBC article
• Positive Sentiment: McDonald’s continues to appeal to income-focused investors after declaring a quarterly dividend of $1.86 per share. Analysts also maintain a consensus “moderate buy” recommendation. Dividend strength and softer sales expectations Consensus recommendation
• Neutral Sentiment: Investors are focused on value meals, menu innovation, digital promotions, same-store sales, margins and management’s outlook when McDonald’s reports second-quarter results. Q2 earnings factors
• Negative Sentiment: Mizuho lowered its price target from $300 to $290 and assigned a “neutral” rating, signaling limited conviction despite implied upside from current levels.
• Negative Sentiment: The stock has remained below its 200-week moving average for the longest stretch since 2003, highlighting persistent technical weakness. Barchart technical analysis
• Negative Sentiment: Analysts expect softer sales and weaker earnings, particularly as lower-income consumers remain pressured. That caution could limit gains before the earnings release. McDonald’s stock ahead of August 4 earnings

About McDonald’s

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.