Shares of McDonald’s Corporation (NYSE:MCD – Get Free Report) fell 1.1% on Tuesday. The company traded as low as $261.00 and last traded at $262.7450. 6,083,772 shares traded hands during mid-day trading, an increase of 41% from the average daily volume of 4,303,062 shares. The stock had previously closed at $265.64.
McDonald’s News Summary
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: A possible Pokémon collaboration could give McDonald’s a timely marketing boost and attract customers, although the promotional impact remains uncertain. Article: McDonald’s Investors May Want to Catch the Stock Ahead of Pokémon Partnership
- Positive Sentiment: ETFs purchased $93.7 million of MCD shares on October 30, a sign of institutional fund demand, though a single day’s buying does not necessarily indicate a lasting trend. Article: ETFs Bought $93.7 Million of McDonald’s (MCD) on Oct. 30
- Neutral Sentiment: Investors are looking ahead to Wednesday’s Q3 report. Beverage expansion and international growth are potential supports, while weak U.S. traffic, rising costs and operational challenges could weigh on results. Article: McDonald’s Stock Ahead of Q3 Earnings: Buy, Sell or Wait for Now?
- Negative Sentiment: U.S. lawmakers questioned CEO Chris Kempczinski about machine-learning tools that recommend menu prices. The inquiry raises possible regulatory and reputational concerns around how prices are set. Article: US lawmakers question McDonald’s CEO about algorithmic pricing practices
- Negative Sentiment: A judge allowed a proposed class-action lawsuit over McRib marketing to proceed, leaving the company exposed to continued legal costs and reputational risk. The allegations have not been proven. Article: McDonald’s (MCD) Must Keep Fighting McRib Marketing Class Action Suit
Wall Street Analyst Weigh In
MCD has been the topic of several recent research reports. Citigroup dropped their target price on McDonald’s from $305.00 to $295.00 and set a “buy” rating on the stock in a research report on Tuesday, October 20th. Mizuho reduced their price target on McDonald’s from $290.00 to $260.00 and set a “neutral” rating on the stock in a research report on Friday. Bank of America increased their price objective on McDonald’s from $339.00 to $343.00 in a report on Wednesday, August 5th. DZ Bank restated a “buy” rating on shares of McDonald’s in a research note on Thursday, September 24th. Finally, Wells Fargo & Company decreased their price target on McDonald’s from $300.00 to $270.00 and set an “overweight” rating for the company in a research note on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $294.73.
Check Out Our Latest Research Report on McDonald’s
McDonald’s Stock Performance
The company has a market cap of $185.93 billion, a price-to-earnings ratio of 21.34, a P/E/G ratio of 2.86 and a beta of 0.44. The company’s fifty day moving average is $248.16 and its two-hundred day moving average is $283.22.
McDonald’s (NYSE:MCD – Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. McDonald’s’s quarterly revenue was up 3.7% on a year-over-year basis. During the same period last year, the business earned $3.19 earnings per share. On average, sell-side analysts anticipate that McDonald’s Corporation will post 12.83 EPS for the current fiscal year.
McDonald’s Increases Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be given a $1.93 dividend. The ex-dividend date is Tuesday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a yield of 2.9%. McDonald’s’s dividend payout ratio (DPR) is currently 62.71%.
Institutional Investors Weigh In On McDonald’s
Institutional investors and hedge funds have recently modified their holdings of the company. Pictet Asset Management Holding SA increased its holdings in shares of McDonald’s by 16.1% in the third quarter. Pictet Asset Management Holding SA now owns 558,997 shares of the fast-food giant’s stock worth $129,095,000 after buying an additional 77,620 shares during the period. Leelyn Smith LLC lifted its holdings in McDonald’s by 5.1% in the 3rd quarter. Leelyn Smith LLC now owns 24,156 shares of the fast-food giant’s stock worth $5,579,000 after buying an additional 1,181 shares during the period. Plancorp LLC increased its stake in shares of McDonald’s by 8.2% during the third quarter. Plancorp LLC now owns 8,545 shares of the fast-food giant’s stock valued at $1,973,000 after buying an additional 651 shares during the period. Waycross Partners LLC increased its position in McDonald’s by 4.0% during the 3rd quarter. Waycross Partners LLC now owns 62,739 shares of the fast-food giant’s stock valued at $14,489,000 after purchasing an additional 2,424 shares during the period. Finally, Ashton Thomas Private Wealth LLC lifted its holdings in McDonald’s by 3.3% in the third quarter. Ashton Thomas Private Wealth LLC now owns 23,262 shares of the fast-food giant’s stock worth $5,372,000 after buying an additional 749 shares during the period. Hedge funds and other institutional investors own 70.29% of the company’s stock.
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.
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