Shares of McDonald’s Corporation (NYSE:MCD – Get Free Report) hit a new 52-week low during trading on Wednesday . The company traded as low as $254.28 and last traded at $255.5270, with a volume of 4196825 shares traded. The stock had previously closed at $255.69.
McDonald’s News Summary
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: A slower pace of restaurant expansion could help McDonald’s protect returns on new locations as construction costs rise and consumers remain price-sensitive. More disciplined development may support margins and capital efficiency. Can MCD’s Slower Expansion Pace Help Protect New-Restaurant Returns?
- Positive Sentiment: One Milwaukee franchisee reported double-digit sales growth, attributing the improvement to local execution and operating initiatives. While anecdotal, the report suggests individual operators can still outperform despite broader U.S. sales concerns. McDonald’s franchisee sales are up
- Positive Sentiment: McDonald’s was highlighted as a defensive restaurant stock ahead of inflation data and a Federal Reserve decision, reflecting the company’s resilient brand, franchised business model and dividend profile. Defensive stocks to watch
- Neutral Sentiment: CEO commentary indicates that families and other unexpected customer groups are increasingly turning to Happy Meals, prompting McDonald’s to reassess its strategy. The potential traffic opportunity is constructive, but the article does not provide quantified sales guidance. McDonald’s CEO on Happy Meals
- Neutral Sentiment: A planned U.K. interactive restaurant where customers can make their own burgers could generate publicity and test new customer experiences, but its financial impact is likely limited in the near term. New U.K. McDonald’s store
- Negative Sentiment: Coverage continues to emphasize slowing U.S. sales and execution missteps, reinforcing concerns that McDonald’s may be losing momentum versus other franchised restaurant operators. Why franchise models are winning
- Negative Sentiment: McDonald’s deleted a viral social-media post involving a controversial intern claim. Although unlikely to affect fundamentals, the incident creates avoidable reputational and communications risk. McDonald’s deletes viral post
Wall Street Analysts Forecast Growth
MCD has been the topic of several recent research reports. Deutsche Bank Aktiengesellschaft lifted their price target on shares of McDonald’s from $335.00 to $345.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. BTIG Research restated a “buy” rating and issued a $350.00 price objective on shares of McDonald’s in a report on Wednesday, August 5th. Weiss Ratings lowered McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Evercore set a $320.00 price target on McDonald’s in a research note on Thursday, July 23rd. Finally, Tigress Financial upped their price objective on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $321.35.
McDonald’s Stock Down 0.1%
The business has a fifty day moving average of $269.13 and a 200 day moving average of $288.10. The firm has a market cap of $180.82 billion, a P/E ratio of 20.76, a PEG ratio of 2.76 and a beta of 0.41.
McDonald’s (NYSE:MCD – Get Free Report) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The firm’s revenue for the quarter was up 3.7% compared to the same quarter last year. During the same period in the previous year, the company posted $3.19 EPS. Research analysts expect that McDonald’s Corporation will post 12.87 EPS for the current year.
McDonald’s Dividend Announcement
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s payout ratio is 60.44%.
Hedge Funds Weigh In On McDonald’s
Large investors have recently modified their holdings of the stock. California State Teachers Retirement System raised its holdings in McDonald’s by 27,036.7% in the 2nd quarter. California State Teachers Retirement System now owns 302,891,546 shares of the fast-food giant’s stock valued at $81,874,614,000 after acquiring an additional 301,775,375 shares during the period. State Street Corp boosted its holdings in shares of McDonald’s by 2.7% during the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock worth $10,997,789,000 after acquiring an additional 959,140 shares during the period. Geode Capital Management LLC boosted its holdings in shares of McDonald’s by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock worth $5,195,965,000 after acquiring an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD grew its position in shares of McDonald’s by 3.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock valued at $2,895,768,000 after purchasing an additional 277,617 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of McDonald’s in the fourth quarter valued at approximately $2,890,438,000. 70.29% of the stock is owned by institutional investors.
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.
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