McDonald’s Corporation (NYSE:MCD – Get Free Report) has received a consensus recommendation of “Moderate Buy” from the twenty-eight research firms that are covering the company, MarketBeat.com reports. Eleven equities research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has given a strong buy rating to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $317.0435.
A number of analysts have weighed in on MCD shares. Needham & Company LLC reissued a “buy” rating on shares of McDonald’s in a report on Monday. Weiss Ratings reiterated a “hold (c)” rating on shares of McDonald’s in a research note on Friday. Piper Sandler set a $286.00 price target on shares of McDonald’s in a research report on Tuesday, August 4th. Royal Bank Of Canada decreased their price objective on shares of McDonald’s from $295.00 to $290.00 and set a “sector perform” rating for the company in a research note on Tuesday, September 15th. Finally, KeyCorp reaffirmed an “overweight” rating on shares of McDonald’s in a report on Monday.
Key Stories Impacting McDonald’s
- Positive Sentiment: McDonald’s won most of a sweeping race-bias lawsuit brought by Black franchisees, potentially reducing litigation-related financial and reputational risks. Reuters lawsuit article
- Positive Sentiment: The company is testing advertising from other brands on digital menu boards after customers place orders, creating a potential incremental revenue stream from its restaurant and drive-thru footprint. Digital menu board advertising article
- Positive Sentiment: McDonald’s is bringing back its Monopoly promotion, featuring a $1 million grand prize, which could support customer engagement and value-focused traffic during the fall. The promotion is a marketing catalyst, though unlikely to solve broader execution issues on its own. McDonald’s Monopoly article
- Positive Sentiment: McDonald’s has reached 50 consecutive years of dividend increases and recently raised its quarterly dividend 4% to $1.93 per share, reinforcing its appeal to income-oriented investors. Dividend King article
- Neutral Sentiment: Investor Day is the main near-term catalyst. Investors are looking for measurable targets and evidence that new value, digital and franchisee initiatives can improve U.S. sales rather than simply add more discounts. CNBC Investor Day article
- Negative Sentiment: The backdrop remains challenging: McDonald’s U.S. business recently disappointed, the stock has approached a one-year low, and investors are questioning whether the strategy reset can reverse slowing sales. Yahoo Finance McDonald’s strategy article
McDonald’s Price Performance
McDonald’s stock opened at $250.14 on Friday. The stock has a market cap of $177.01 billion, a PE ratio of 20.32, a P/E/G ratio of 2.68 and a beta of 0.41. The stock’s fifty day moving average is $264.12 and its two-hundred day moving average is $282.34. McDonald’s has a 1-year low of $246.52 and a 1-year high of $341.75.
McDonald’s (NYSE:MCD – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. The business had revenue of $7.10 billion for 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 business’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.19 EPS. On average, research analysts expect that McDonald’s will post 12.88 earnings per share for the current fiscal year.
McDonald’s Increases Dividend
The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a yield of 3.1%. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s dividend payout ratio (DPR) is 60.44%.
Institutional Investors Weigh In On McDonald’s
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ascentis Wealth Management LLC raised its stake in shares of McDonald’s by 4,008.8% in the 2nd quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock valued at $22,768,000 after acquiring an additional 82,180 shares during the period. Borer Denton & Associates Inc. grew its position in shares of McDonald’s by 16.9% during the second quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock worth $3,746,000 after buying an additional 2,000 shares in the last quarter. Peterson Wealth Services increased its stake in shares of McDonald’s by 3,294.5% in the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock worth $3,600,000 after buying an additional 11,432 shares during the last quarter. HighTower Advisors LLC raised its holdings in McDonald’s by 7.1% in the second quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock valued at $397,822,000 after acquiring an additional 97,060 shares in the last quarter. Finally, Harbour Investments Inc. raised its stake in McDonald’s by 84.4% during the fourth quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant’s stock valued at $10,853,000 after buying an additional 16,252 shares in the last quarter. 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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