McDonald’s (NYSE:MCD) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

McDonald’s (NYSE:MCD – Get Free Report) had its price target raised by equities research analysts at JPMorgan Chase & Co. from $250.00 to $270.00 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 target price suggests a potential downside of 2.30% from the company’s current price.

A number of other brokerages have also weighed in on MCD. Loop Capital decreased their price objective on shares of McDonald’s from $301.00 to $273.00 and set a “hold” rating for the company in a report on Wednesday, August 5th. HSBC cut their target price on McDonald’s from $357.00 to $356.00 and set a “buy” rating on the stock in a research note on Wednesday, August 5th. Rothschild & Co Redburn reduced their target price on McDonald’s from $306.00 to $285.00 in a report on Wednesday, August 26th. Daiwa Securities Group decreased their price target on McDonald’s from $309.00 to $293.00 and set an “outperform” rating for the company in a research note on Thursday, August 6th. Finally, Seaport Research Partners assumed coverage on McDonald’s in a report on Wednesday, September 16th. They set a “neutral” rating on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $297.82.

Read Our Latest Analysis on MCD

McDonald’s Trading Down 0.6%

NYSE:MCD traded down $1.68 on Thursday, reaching $276.36. 6,331,310 shares of the stock traded hands, compared to its average volume of 5,495,061. The company has a market capitalization of $195.56 billion, a price-to-earnings ratio of 21.86, a PEG ratio of 3.03 and a beta of 0.42. McDonald’s has a 12 month low of $229.20 and a 12 month high of $341.75. The company’s fifty day simple moving average is $248.76 and its 200 day simple moving average is $282.57.

McDonald’s (NYSE:MCD – Get Free Report) last issued its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.38 by $0.19. The firm had revenue of $7.16 billion for the quarter, compared to the consensus estimate of $7.28 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business’s revenue was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.22 earnings per share. Equities analysts anticipate that McDonald’s will post 12.84 EPS for the current fiscal year.

Institutional Investors Weigh In On McDonald’s

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Ascentis Wealth Management LLC increased its holdings in McDonald’s by 4,008.8% during the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock valued at $22,768,000 after buying an additional 82,180 shares during the last quarter. Ridgewood Investments LLC bought a new position in McDonald’s in the third quarter worth approximately $1,026,000. Borer Denton & Associates Inc. raised its position in McDonald’s by 16.9% in the second quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock worth $3,746,000 after acquiring an additional 2,000 shares during the period. HighTower Advisors LLC boosted its stake in shares of McDonald’s by 7.1% during the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock worth $397,822,000 after acquiring an additional 97,060 shares during the last quarter. Finally, Viking Fund Management LLC boosted its stake in shares of McDonald’s by 60.0% during the 3rd quarter. Viking Fund Management LLC now owns 40,000 shares of the fast-food giant’s stock worth $9,238,000 after acquiring an additional 15,000 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Key Stories Impacting McDonald’s

Here are the key news stories impacting McDonald’s this week:

  • Positive Sentiment: Argus raised its price target to $320 from $310 and reiterated a “buy” rating, signaling confidence in the stock’s prospects. Argus rating
  • Neutral Sentiment: McDonald’s is testing value bundles at nearly 2,000 U.S. restaurants, ahead of a planned national value platform in early 2027. The deals may help bring back customers, but the company is still assessing their effect on traffic and orders. McDonald’s value-bundle test
  • Neutral Sentiment: Third-quarter profit beat analyst estimates, but revenue missed and U.S. comparable sales declined. That mixed backdrop helps explain why investors are watching for evidence that value promotions can sustain a domestic recovery. Q3 earnings and U.S. traffic
  • Negative Sentiment: Consumers have filed a lawsuit alleging McDonald’s labeled McCafé drinks “sugar free” despite some containing as much as 18 grams of sugar. The allegations are unproven, but the case could create legal and reputational risk. McCafé labeling lawsuit
  • Negative Sentiment: Freedom Broker cut its rating from “buy” to “hold” and lowered its price target to $298 from $305, adding a more cautious view alongside the recent analyst optimism. Freedom Broker rating change

McDonald’s Company Profile

(Get Free Report)

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.

Further Reading

Analyst Recommendations for McDonald's (NYSE:MCD)

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