McDonald's (NYSE:MCD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Wednesday.
According to Zacks, “McDonald’s shares outpaced the industry in the past year. Notably, growing guest count remains McDonald’s top priority and it is undertaking various sales and digital initiatives to this end. Increased focus on delivery, enhancement of digital capabilities, and accelerated deployment of Experience of the Future restaurants in the United States should drive growth too. Efforts to attract customers in International Lead & High Growth Markets also bode well. In fact, global comps at McDonald’s have been positive over the past eight quarters. Meanwhile, augmented focus on refranchising will cut the company’s capital requirements and facilitate EPS growth and ROE expansion in the long run. Yet, high labor costs and currency headwinds might keep profits under pressure. Also, political and economic unrest in some parts of the world and a not so enticing U.S. restaurant space might restrict sales growth.”
Other equities research analysts have also recently issued research reports about the company. Robert W. Baird reissued an “outperform” rating and set a $170.00 target price on shares of McDonald's in a report on Tuesday, October 3rd. Sanford C. Bernstein set a $180.00 target price on McDonald's and gave the stock a “buy” rating in a report on Tuesday, September 19th. UBS Group set a $170.00 target price on McDonald's and gave the stock a “hold” rating in a report on Wednesday, October 25th. JPMorgan Chase & Co. set a $175.00 target price on McDonald's and gave the stock a “buy” rating in a report on Wednesday, October 25th. Finally, BMO Capital Markets set a $175.00 target price on McDonald's and gave the stock a “buy” rating in a report on Wednesday, October 25th. Nine equities research analysts have rated the stock with a hold rating and twenty-six have given a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $179.68.
McDonald's (NYSE:MCD) last announced its earnings results on Tuesday, October 24th. The fast-food giant reported $1.76 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.75 by $0.01. McDonald's had a negative return on equity of 216.45% and a net margin of 24.19%. The firm had revenue of $5.75 billion for the quarter, compared to analysts’ expectations of $5.75 billion. During the same quarter in the previous year, the company earned $1.62 earnings per share. The firm’s quarterly revenue was down 10.4% compared to the same quarter last year. equities research analysts forecast that McDonald's will post 6.53 earnings per share for the current year.
In other McDonald's news, insider Stephen Easterbrook sold 171,577 shares of the business’s stock in a transaction on Tuesday, November 21st. The shares were sold at an average price of $168.32, for a total transaction of $28,879,840.64. Following the sale, the insider now directly owns 49,778 shares of the company’s stock, valued at approximately $8,378,632.96. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP James R. Sappington sold 8,046 shares of the business’s stock in a transaction on Wednesday, October 25th. The shares were sold at an average price of $165.00, for a total transaction of $1,327,590.00. Following the sale, the vice president now directly owns 15,739 shares in the company, valued at $2,596,935. The disclosure for this sale can be found here. 0.24% of the stock is currently owned by corporate insiders.
Large investors have recently made changes to their positions in the business. Vantage Financial Partners Ltd. Inc. acquired a new stake in McDonald's during the 2nd quarter valued at $322,000. Horan Capital Advisors LLC. acquired a new stake in McDonald's during the 3rd quarter valued at $104,000. Phocas Financial Corp. acquired a new stake in McDonald's during the 2nd quarter valued at $107,000. Proficio Capital Partners LLC raised its stake in McDonald's by 0.7% during the 2nd quarter. Proficio Capital Partners LLC now owns 745 shares of the fast-food giant’s stock valued at $117,000 after purchasing an additional 5 shares during the period. Finally, Mitsubishi UFJ Securities Holdings Co. Ltd. raised its stake in McDonald's by 219.2% during the 3rd quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 830 shares of the fast-food giant’s stock valued at $130,000 after purchasing an additional 570 shares during the period. 67.30% of the stock is currently owned by institutional investors.
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McDonald's Company Profile
McDonald’s Corporation (McDonald’s) operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally relevant menu of food and drinks sold at various price points in over 100 countries. The Company’s segments include U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate.
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