McDonald’s (NYSE:MCD) Price Target Cut to $250.00 by Analysts at Jefferies Financial Group

McDonald’s (NYSE:MCD) had its target price reduced by equities researchers at Jefferies Financial Group from $260.00 to $250.00 in a research note issued to investors on Tuesday, Benzinga reports. The firm currently has an “overweight” rating on the fast-food giant’s stock. Jefferies Financial Group’s target price indicates a potential upside of 6.16% from the stock’s current price.

A number of other equities research analysts also recently issued reports on MCD. Robert W. Baird decreased their price target on shares of McDonald’s from $285.00 to $250.00 and set a “neutral” rating on the stock in a research note on Thursday, September 24th. HC Wainwright set a $250.00 price objective on shares of McDonald’s in a research note on Friday. Oppenheimer reduced their target price on shares of McDonald’s from $325.00 to $295.00 and set an “outperform” rating on the stock in a report on Thursday, September 24th. TD Cowen decreased their target price on shares of McDonald’s from $282.00 to $270.00 and set a “hold” rating on the stock in a research report on Thursday. Finally, Royal Bank Of Canada lowered their price target on shares of McDonald’s from $290.00 to $285.00 and set a “sector perform” rating for the company in a report on Thursday, September 24th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, McDonald’s has a consensus rating of “Moderate Buy” and an average target price of $294.38.

McDonald’s Stock Up 0.8%

NYSE MCD traded up $1.89 during trading on Tuesday, hitting $235.49. 678,770 shares of the stock traded hands, compared to its average volume of 4,112,749. McDonald’s has a 12-month low of $232.06 and a 12-month high of $341.75. The firm has a 50-day simple moving average of $261.55 and a 200-day simple moving average of $279.74. The company has a market capitalization of $166.64 billion, a P/E ratio of 19.14, a price-to-earnings-growth ratio of 2.56 and a beta of 0.41.

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

Institutional Investors Weigh In On McDonald’s

Several hedge funds have recently modified their holdings of the business. Abound Financial LLC purchased a new stake in shares of McDonald’s during the 4th quarter worth $30,000. Purpose Unlimited Inc. purchased a new stake in shares of McDonald’s during the fourth quarter valued at about $31,000. GKV Capital Management Co. Inc. purchased a new stake in shares of McDonald’s during the first quarter valued at about $33,000. Merkkuri Wealth Advisors LLC bought a new stake in shares of McDonald’s in the 1st quarter valued at about $43,000. Finally, POM Investment Strategies LLC raised its stake in shares of McDonald’s by 46.2% during the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after acquiring an additional 55 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is targeting roughly 250 basis points of restaurant-level efficiency gains through its NEXT strategy, while artificial intelligence could reduce labor requirements by about 50 hours per week at participating restaurants. These initiatives may improve franchisee economics and margins over time. Restaurant Dive article
• Positive Sentiment: The company is testing advertising on drive-thru menu boards through a media network at approximately 450 U.S. company-owned restaurants. Management hopes the platform could eventually become a substantial new revenue opportunity, potentially approaching $1 billion. Quartz article
• Positive Sentiment: McDonald’s scale, franchise model, valuation and dividend history remain supportive factors. Recent commentary describes the dividend as backed by recurring franchise-related cash flow, while some analysts view the depressed valuation as an opportunity for long-term investors.
• Neutral Sentiment: McDonald’s is increasingly using AI to guide menu pricing. The technology could improve revenue and profitability, but aggressive or inconsistent pricing may alienate customers and invite regulatory or antitrust scrutiny. Reuters article
• Negative Sentiment: Melius Research downgraded MCD to “Strong Sell,” adding pressure to the stock and reinforcing concerns about weakening traffic and limited near-term growth.
• Negative Sentiment: Morgan Stanley expects U.S. comparable sales to remain pressured through year-end because of difficult comparisons, and it lowered earnings estimates through 2030 to reflect investment costs associated with NEXT. Price-target cuts from Morgan Stanley and Melius further weighed on sentiment. Yahoo Finance article
• Negative Sentiment: Higher 10-year Treasury yields have coincided with a major decline in McDonald’s shares, making the stock’s income-oriented valuation less attractive and increasing competition from bonds. The relationship may also be partly coincidental, but it adds to macroeconomic pressure.
• Negative Sentiment: Technical weakness is amplifying the concerns: MCD is trading near a multiyear low and well below its long-term moving averages, signaling deteriorating momentum.

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.