McDonald’s (NYSE:MCD) Now Covered by Analysts at HSBC

Analysts at HSBC assumed coverage on shares of McDonald’s (NYSE:MCD) in a research note issued to investors on Thursday, Zacks reports. The brokerage set a “strong-buy” rating on the fast-food giant’s stock.

A number of other analysts have also commented on the company. Argus lifted their price target on McDonald’s from $310.00 to $320.00 and gave the stock a “buy” rating in a report on Friday. DZ Bank restated a “buy” rating on shares of McDonald’s in a research report on Thursday, September 24th. Wells Fargo & Company upped their target price on shares of McDonald’s from $270.00 to $300.00 and gave the stock an “overweight” rating in a research note on Thursday. Evercore reduced their price target on shares of McDonald’s from $320.00 to $300.00 and set an “outperform” rating for the company in a research report on Thursday, September 24th. Finally, Loop Capital cut their price objective on shares of McDonald’s from $301.00 to $273.00 and set a “hold” rating for the company in a research report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $297.82.

McDonald’s Stock Down 0.6%

Shares of McDonald’s stock opened at $276.36 on Thursday. The company’s 50-day simple moving average is $248.76 and its 200-day simple moving average is $282.57. McDonald’s has a 52-week low of $229.20 and a 52-week high of $341.75. The firm has a market cap of $195.56 billion, a price-to-earnings ratio of 21.86, a price-to-earnings-growth ratio of 3.03 and a beta of 0.42.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.38 by $0.19. The business had revenue of $7.16 billion for the quarter, compared to the consensus estimate of $7.28 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. The business’s revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business posted $3.22 EPS. Equities research analysts anticipate that McDonald’s will post 12.84 EPS for the current year.

Hedge Funds Weigh In On McDonald’s

A number of institutional investors have recently added to or reduced their stakes in the company. GKV Capital Management Co. Inc. acquired a new stake in McDonald’s during the 1st quarter valued at approximately $33,000. Valued Wealth Advisors LLC raised its position in shares of McDonald’s by 121.1% in the 3rd quarter. Valued Wealth Advisors LLC now owns 168 shares of the fast-food giant’s stock worth $39,000 after acquiring an additional 92 shares in the last quarter. POM Investment Strategies LLC grew its position in McDonald’s by 46.2% in the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after purchasing an additional 55 shares during the period. Westfuller Advisors LLC boosted its holdings in shares of McDonald’s by 140.0% during the 2nd quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock valued at $49,000 after purchasing an additional 105 shares during the last quarter. Finally, Burkett Financial Services LLC boosted its position in McDonald’s by 2,312.5% in the 3rd 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 currently owned by institutional investors and hedge funds.

Key McDonald’s News

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

• Positive Sentiment: Argus raised its price target to $320 from $310 and reiterated a “buy” rating, signaling confidence in the stock’s prospects. Argus rating
• Neutral Sentiment: McDonald’s is testing value bundles at nearly 2,000 U.S. restaurants, ahead of a planned national value platform in early 2027. The deals may help bring back customers, but the company is still assessing their effect on traffic and orders. McDonald’s value-bundle test
• Neutral Sentiment: Third-quarter profit beat analyst estimates, but revenue missed and U.S. comparable sales declined. That mixed backdrop helps explain why investors are watching for evidence that value promotions can sustain a domestic recovery. Q3 earnings and U.S. traffic
• Negative Sentiment: Consumers have filed a lawsuit alleging McDonald’s labeled McCafé drinks “sugar free” despite some containing as much as 18 grams of sugar. The allegations are unproven, but the case could create legal and reputational risk. McCafé labeling lawsuit
• Negative Sentiment: Freedom Broker cut its rating from “buy” to “hold” and lowered its price target to $298 from $305, adding a more cautious view alongside the recent analyst optimism. Freedom Broker rating change

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.