McDonald’s (NYSE:MCD) Downgraded by Freedom Broker to Hold

Freedom Broker cut shares of McDonald’s (NYSE:MCD) from a buy rating to a hold rating in a report published on Thursday morning,Benzinga reports. They currently have $298.00 price target on the fast-food giant’s stock, down from their previous price target of $305.00.

Several other analysts have also issued reports on the stock. Needham & Company LLC restated a “buy” rating on shares of McDonald’s in a research report on Monday, September 21st. Seaport Research Partners started coverage on McDonald’s in a report on Wednesday, September 16th. They issued a “neutral” rating on the stock. Tigress Financial lifted their price objective on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a report on Friday, July 17th. DZ Bank reissued a “buy” rating on shares of McDonald’s in a research note on Thursday, September 24th. Finally, Mizuho dropped their target price on McDonald’s from $290.00 to $260.00 and set a “neutral” rating for the company in a report on Friday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $297.53.

McDonald’s Trading Down 0.8%

MCD stock opened at $278.06 on Thursday. The company’s 50 day moving average is $248.43 and its 200 day moving average is $282.70. The stock has a market cap of $196.77 billion, a price-to-earnings ratio of 22.00, a price-to-earnings-growth ratio of 3.20 and a beta of 0.42. McDonald’s has a 1-year low of $229.20 and a 1-year high of $341.75.

McDonald’s (NYSE:MCD) last announced its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share for the quarter, beating analysts’ consensus estimates of $3.38 by $0.19. McDonald’s had a net margin of 32.38% and a negative return on equity of 671.56%. The business had revenue of $7.16 billion for the quarter, compared to the consensus estimate of $7.28 billion. During the same period last year, the firm posted $3.22 earnings per share. McDonald’s’s quarterly revenue was up 1.1% on a year-over-year basis. As a group, sell-side analysts forecast that McDonald’s will post 12.83 EPS for the current fiscal year.

McDonald’s Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. This represents a $7.72 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Tuesday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s payout ratio is presently 61.08%.

Hedge Funds Weigh In On McDonald’s

A number of institutional investors have recently bought and sold shares of MCD. GKV Capital Management Co. Inc. bought a new position in McDonald’s during the first quarter worth about $33,000. Valued Wealth Advisors LLC increased its position in McDonald’s by 121.1% during the third quarter. Valued Wealth Advisors LLC now owns 168 shares of the fast-food giant’s stock worth $39,000 after buying an additional 92 shares during the last quarter. POM Investment Strategies LLC increased its position in McDonald’s by 46.2% during the second quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after buying an additional 55 shares during the last quarter. Westfuller Advisors LLC raised its stake in McDonald’s by 140.0% in the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock valued at $49,000 after buying an additional 105 shares during the period. Finally, Burkett Financial Services LLC raised its stake in McDonald’s by 2,312.5% in the third quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock valued at $45,000 after buying an additional 185 shares during the period. 70.29% of the stock is owned by institutional investors.

McDonald’s News Roundup

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

• Positive Sentiment: Third-quarter adjusted EPS of $3.57 topped estimates of $3.38, with international growth and stronger franchised margins helping offset softer U.S. results. Article: McDonald’s Q3 Earnings Beat, but U.S. Traffic Still Pressures Growth
• Positive Sentiment: Management is testing value bundles at nearly 1,900 U.S. restaurants ahead of a planned national platform in early 2027, aiming to attract cost-conscious customers. The initiative could help revive traffic if the pilot succeeds. Article: McDonald’s plans new value bundles next year after US traffic falls in third quarter
• Neutral Sentiment: Several firms raised price targets, including Wells Fargo to $300 and Citigroup to $315, while JPMorgan’s new $270 target is below the referenced $278.06 share price. Oppenheimer also cautioned that technical indicators look stretched after a strong recent rally. Article: Wells Fargo & Company Issues Positive Forecast for McDonald’s Stock Price
• Negative Sentiment: Revenue of $7.16 billion missed expectations of about $7.28 billion, and U.S. comparable sales declined 0.2% as customers remained under pressure from the cost of living. U.S. traffic weakness is the main risk to sustaining growth. Article: McDonald’s Beats Earnings, but US Sales Tell Another Story
• Negative Sentiment: McDonald’s U.S. marketing chief is stepping down amid declining sales, adding a leadership transition as the company works to improve domestic performance. Article: McDonald’s US CMO steps down as sales decline

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.