Mcdonald’s (NYSE:MCD) Shares Down 5% Following Weak Earnings

Mcdonald’s Corp (NYSE:MCD) shares were down 5% on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $199.15 and last traded at $199.27, approximately 9,662,349 shares traded hands during trading. An increase of 206% from the average daily volume of 3,152,886 shares. The stock had previously closed at $209.85.

The fast-food giant reported $2.11 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $2.22 by ($0.11). The firm had revenue of $5.43 billion during the quarter, compared to analysts’ expectations of $5.47 billion. Mcdonald’s had a negative return on equity of 92.02% and a net margin of 28.32%. The business’s quarterly revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the business earned $2.10 earnings per share.

The company also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be paid a $1.25 dividend. This is an increase from Mcdonald’s’s previous quarterly dividend of $1.16. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.51%. The ex-dividend date is Friday, November 29th. Mcdonald’s’s dividend payout ratio (DPR) is 58.73%.

A number of equities analysts have recently issued reports on MCD shares. Credit Suisse Group raised their price target on Mcdonald’s from $230.00 to $236.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 30th. They noted that the move was a valuation call. Stephens set a $230.00 price target on Mcdonald’s and gave the stock a “buy” rating in a research note on Thursday, September 26th. Sanford C. Bernstein reiterated a “buy” rating on shares of Mcdonald’s in a research report on Friday, July 26th. KeyCorp lifted their target price on Mcdonald’s from $215.00 to $235.00 and gave the company an “overweight” rating in a research report on Monday, July 29th. Finally, DZ Bank reiterated a “hold” rating and set a $220.00 target price (down from $222.00) on shares of Mcdonald’s in a research report on Tuesday, July 30th. Nine analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the stock. Mcdonald’s currently has an average rating of “Buy” and an average price target of $223.00.

In other news, EVP Silvia Lagnado sold 26,649 shares of the business’s stock in a transaction dated Thursday, August 1st. The stock was sold at an average price of $212.58, for a total value of $5,665,044.42. Following the transaction, the executive vice president now directly owns 40,129 shares in the company, valued at $8,530,622.82. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Catherine A. Hoovel sold 457 shares of the business’s stock in a transaction dated Friday, August 16th. The shares were sold at an average price of $218.15, for a total value of $99,694.55. Following the completion of the transaction, the vice president now owns 1,348 shares in the company, valued at $294,066.20. The disclosure for this sale can be found here. 0.25% of the stock is owned by insiders.

Institutional investors have recently made changes to their positions in the company. Ancora Advisors LLC increased its holdings in shares of Mcdonald’s by 8.2% in the second quarter. Ancora Advisors LLC now owns 59,915 shares of the fast-food giant’s stock worth $12,442,000 after purchasing an additional 4,559 shares during the last quarter. Lourd Capital LLC increased its holdings in shares of Mcdonald’s by 8.2% in the second quarter. Lourd Capital LLC now owns 1,593 shares of the fast-food giant’s stock worth $331,000 after purchasing an additional 121 shares during the last quarter. Ballentine Partners LLC increased its holdings in shares of Mcdonald’s by 168.7% in the second quarter. Ballentine Partners LLC now owns 15,024 shares of the fast-food giant’s stock worth $3,120,000 after purchasing an additional 9,433 shares during the last quarter. GFS Advisors LLC bought a new stake in shares of Mcdonald’s in the second quarter worth about $212,000. Finally, Massmutual Trust Co. FSB ADV increased its stake in Mcdonald’s by 1.3% during the second quarter. Massmutual Trust Co. FSB ADV now owns 70,802 shares of the fast-food giant’s stock worth $14,703,000 after acquiring an additional 892 shares during the last quarter. Institutional investors and hedge funds own 67.65% of the company’s stock.

The company has a 50 day simple moving average of $211.55 and a two-hundred day simple moving average of $207.08. The company has a market capitalization of $158.34 billion, a P/E ratio of 25.22, a PEG ratio of 3.10 and a beta of 0.49.

Mcdonald’s Company Profile (NYSE:MCD)

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2018, the company operated 37,855 restaurants, including 35,085 franchised restaurants comprising 21,685 franchised to conventional franchisees, 7,225 licensed to developmental licensees, and 6,175 licensed to foreign affiliates; and 2,770 company-operated restaurants.

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