McDonald’s (NYSE:MCD – Free Report) had its target price reduced by BTIG Research from $350.00 to $295.00 in a report issued on Thursday morning, Marketbeat reports. BTIG Research currently has a buy rating on the fast-food giant’s stock.
A number of other research analysts also recently weighed in on the company. Wells Fargo & Company decreased their price target on McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research note on Thursday, July 16th. Evercore cut their price objective on McDonald’s from $320.00 to $300.00 and set an “outperform” rating for the company in a report on Thursday. UBS Group decreased their target price on shares of McDonald’s from $340.00 to $320.00 and set a “buy” rating for the company in a research note on Monday, September 21st. KeyCorp restated an “overweight” rating on shares of McDonald’s in a report on Monday, September 21st. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and set a $295.00 price target on shares of McDonald’s in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $300.40.
View Our Latest Stock Report on MCD
McDonald’s Stock Performance
McDonald’s (NYSE:MCD – Get Free Report) last announced 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. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. During the same quarter in the prior year, the company posted $3.19 earnings per share. The firm’s revenue was up 3.7% on a year-over-year basis. On average, equities research analysts forecast that McDonald’s will post 12.86 EPS for the current year.
McDonald’s Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.3%. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. McDonald’s’s dividend payout ratio is 60.44%.
Institutional Trading of McDonald’s
Institutional investors have recently added to or reduced their stakes in the company. Abound Financial LLC acquired a new position in shares of McDonald’s in the fourth quarter valued at about $30,000. Purpose Unlimited Inc. bought a new stake in McDonald’s in the 4th quarter valued at about $31,000. GKV Capital Management Co. Inc. bought a new stake in McDonald’s in the 1st quarter valued at about $33,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of McDonald’s during the 1st quarter worth approximately $43,000. Finally, POM Investment Strategies LLC grew its position in shares of McDonald’s by 46.2% during the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after purchasing an additional 55 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors.
Key Stories Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s raised its quarterly dividend by nearly 4%, supporting the investment case for income-oriented shareholders. Some analysts also view the post-investor-day pullback as improving the stock’s valuation and dividend yield. McDonald’s Increased Its Dividend by Nearly 4%. How to Play MCD Stock Here.
- Positive Sentiment: The company’s NEXT strategy targets improved restaurant productivity, AI-enabled operations, stronger loyalty sales and higher margins through 2030. Management also plans new protein-focused menu items, including options aimed at consumers using GLP-1 weight-loss medications. Struggling McDonald’s pins hopes on restaurant upgrades, protein bowls and AI
- Neutral Sentiment: McDonald’s revived its Monopoly promotion with a major change, which could support engagement and customer traffic, although the announcement is unlikely to materially affect near-term earnings. McDonald’s revives its popular Monopoly game with one big change
- Negative Sentiment: McDonald’s committed approximately $8.5 billion through 2036 to franchisee support, restaurant modernization, technology and operational upgrades. Investors appear concerned that the spending will pressure cash flow and margins before the benefits arrive. McDonald’s expects inflation to keep traffic flat, shares dip after $8.5 bln capex plan
- Negative Sentiment: CEO Chris Kempczinski warned that elevated inflation and lackluster traffic may persist, particularly among lower-income consumers. That outlook undermines expectations for a quick sales recovery and has prompted multiple analysts to reduce their price targets, including Baird, JPMorgan, Oppenheimer, RBC and BTIG. McDonald’s CEO Warns Elevated Inflation Will Stick Around
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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