Stock Traders Buy High Volume of McDonald’s Put Options (NYSE:MCD)

McDonald’s Corporation (NYSE:MCD) was the target of unusually large options trading on Thursday. Stock traders bought 47,332 put options on the stock. This represents an increase of approximately 66% compared to the typical daily volume of 28,464 put options.

McDonald’s News Summary

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

• Positive Sentiment: Citigroup lowered its price target to $310 from $345 but maintained a “buy” rating, implying significant potential upside from current levels. Ticker Report analyst update
• Positive Sentiment: BTIG reaffirmed its “buy” rating with a $350 target, signaling that the firm expects McDonald’s brand strength, scale and eventual operating improvements to support a recovery. Benzinga analyst update
• Positive Sentiment: Analysts continue to view McDonald’s global brand value, menu innovation and restaurant remodels as potential catalysts, while the company’s long dividend-growth record supports its appeal to income-focused investors. Seeking Alpha brand value analysis
• Neutral Sentiment: Investor attention is centered on McDonald’s upcoming strategic update, where management is expected to outline plans for menu innovation, remodels and longer-term growth. Yahoo Finance investor update
• Negative Sentiment: McDonald’s CEO acknowledged execution problems as spending patterns increasingly split between higher- and lower-income consumers. That raises concerns that the company is losing value-focused diners while failing to fully capture stronger demand from affluent customers. 247WallSt consumer and execution analysis
• Negative Sentiment: Jefferies cut its price target to $325 from $350, while analysts continue to seek evidence that a sales recovery is achievable. The target reduction reinforces concerns about near-term growth and execution. Proactive Investors Jefferies update
• Negative Sentiment: Investors are questioning whether McDonald’s current valuation is supported by the cash the business generates after a difficult year for the shares. Yahoo Finance valuation analysis

Institutional Investors Weigh In On McDonald’s

A number of institutional investors have recently modified their holdings of MCD. Allied Investment Advisors LLC raised its position in McDonald’s by 2.6% in the 4th quarter. Allied Investment Advisors LLC now owns 1,366 shares of the fast-food giant’s stock valued at $417,000 after purchasing an additional 34 shares in the last quarter. Sterling Investment Advisors Ltd. grew its position in shares of McDonald’s by 0.6% during the fourth quarter. Sterling Investment Advisors Ltd. now owns 5,799 shares of the fast-food giant’s stock worth $1,772,000 after buying an additional 35 shares in the last quarter. Cypress Capital Management LLC WY grew its position in shares of McDonald’s by 7.0% during the fourth quarter. Cypress Capital Management LLC WY now owns 535 shares of the fast-food giant’s stock worth $164,000 after buying an additional 35 shares in the last quarter. Sound Income Strategies LLC increased its stake in shares of McDonald’s by 0.6% during the first quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant’s stock worth $1,718,000 after buying an additional 35 shares during the period. Finally, Rooted Wealth Advisors Inc. increased its stake in shares of McDonald’s by 1.7% during the fourth quarter. Rooted Wealth Advisors Inc. now owns 2,207 shares of the fast-food giant’s stock worth $714,000 after buying an additional 36 shares during the period. Institutional investors own 70.29% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on MCD. Weiss Ratings lowered McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Evercore set a $320.00 target price on McDonald’s in a research report on Thursday, July 23rd. UBS Group set a $305.00 price target on shares of McDonald’s in a research report on Wednesday, August 5th. TD Cowen dropped their price target on shares of McDonald’s from $300.00 to $282.00 and set a “hold” rating for the company in a research note on Friday, September 11th. Finally, Deutsche Bank Aktiengesellschaft cut their price target on shares of McDonald’s from $325.00 to $300.00 and set a “buy” rating on the stock in a report on Monday. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $316.39.

McDonald’s Stock Down 0.0%

Shares of MCD traded down $0.06 during mid-day trading on Thursday, hitting $248.50. The stock had a trading volume of 3,410,266 shares, compared to its average volume of 3,966,950. McDonald’s has a fifty-two week low of $247.83 and a fifty-two week high of $341.75. The company has a market cap of $175.85 billion, a PE ratio of 20.18, a PEG ratio of 2.73 and a beta of 0.41. The company’s fifty day simple moving average is $266.07 and its two-hundred day simple moving average is $284.76.

McDonald’s (NYSE:MCD) last posted its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period in the prior year, the company posted $3.19 EPS. The business’s revenue was up 3.7% compared to the same quarter last year. Equities analysts expect that McDonald’s will post 12.87 earnings per share for the current year.

McDonald’s Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st were issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend was Tuesday, September 1st. McDonald’s’s dividend payout ratio is 60.44%.

McDonald’s Company Profile

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.