McDonald’s (NYSE:MCD – Get Free Report) had its price objective lowered by JPMorgan Chase & Co. from $280.00 to $260.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage presently has an “overweight” rating on the fast-food giant’s stock. JPMorgan Chase & Co.‘s price objective would indicate a potential upside of 8.04% from the company’s current price.
MCD has been the topic of several other research reports. Morgan Stanley reduced their price target on shares of McDonald’s from $319.00 to $308.00 and set an “equal weight” rating on the stock in a research report on Monday, September 14th. Weiss Ratings reissued a “hold (c)” rating on shares of McDonald’s in a research note on Friday, September 18th. UBS Group set a $260.00 price target on shares of McDonald’s in a report on Thursday. Needham & Company LLC reiterated a “buy” rating on shares of McDonald’s in a research report on Monday. Finally, Tigress Financial boosted their target price on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eleven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $307.29.
View Our Latest Stock Report on MCD
McDonald’s Trading Up 1.0%
McDonald’s (NYSE:MCD – Get Free Report) last posted 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 business 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%.McDonald’s’s revenue was up 3.7% on a year-over-year basis. During the same quarter last year, the company earned $3.19 EPS. Analysts anticipate that McDonald’s will post 12.88 earnings per share for the current fiscal year.
Institutional Inflows and Outflows
A number of institutional investors have recently bought and sold shares of the company. Envestnet Portfolio Solutions Inc. raised its holdings in McDonald’s by 41.3% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 23,867 shares of the fast-food giant’s stock worth $6,451,000 after purchasing an additional 6,980 shares during the period. State Street Corp lifted its holdings in McDonald’s by 1.8% during the second quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant’s stock worth $9,752,921,000 after acquiring an additional 646,675 shares in the last quarter. Security National Bank of Sioux City Iowa IA bought a new position in shares of McDonald’s during the 2nd quarter valued at about $71,000. Anchor Investment Management LLC lifted its stake in McDonald’s by 3.6% in the second quarter. Anchor Investment Management LLC now owns 15,607 shares of the fast-food giant’s stock valued at $4,219,000 after buying an additional 537 shares in the last quarter. Finally, Bullseye Investment Management LLC acquired a new position in McDonald’s in the 2nd quarter worth $133,000. Institutional investors and hedge funds own 70.29% of the company’s stock.
More McDonald’s News
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s announced a nearly 4% dividend increase, reinforcing its appeal as a mature income investment and supporting the case that the stock’s valuation has become more attractive after its decline. McDonald’s Increased Its Dividend by Nearly 4%
- Positive Sentiment: The company’s NEXT strategy calls for approximately $8.5 billion of franchisee support through 2036, including restaurant remodels, technology upgrades, employee training and productivity improvements. Management expects the investments to improve restaurant economics and margins over time. McDonald’s bets $8.5 billion on a productivity makeover
- Positive Sentiment: Growth initiatives include hand-breaded and grilled chicken, protein-focused bowls and wraps aimed at attracting health-conscious consumers and GLP-1 users, as well as AI-enabled ordering and a potential advertising network. These efforts could diversify revenue and help recover market share. Why McDonald’s is following Walmart and Amazon into advertising
- Positive Sentiment: BTIG maintained a “buy” rating with a $295 price target, while Royal Bank of Canada’s $285 target still implies substantial upside from recent levels, suggesting analysts see long-term recovery potential.
- Neutral Sentiment: Royal Bank of Canada lowered its target to $285 and shifted to “sector perform,” reflecting a more cautious near-term outlook despite retaining meaningful upside.
- Negative Sentiment: Management warned that elevated inflation and flat customer traffic could persist. Investors were also concerned that roughly $5 billion of the franchisee support plan will be spent by 2030, creating significant near-term cash commitments before the benefits of modernization are realized. McDonald’s expects inflation to keep traffic flat
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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