Zacks Investment Research upgraded shares of Mcdonald’s (NYSE:MCD) from a hold rating to a buy rating in a report released on Wednesday morning. Zacks Investment Research currently has $208.00 target price on the fast-food giant’s stock.
According to Zacks, “McDonald’s impressive earnings surprise history, various sales and digital initiatives as well as positive comparable sales have helped the stock to outperform its industry in the past six months. Also, earning estimate for 2018 have increased over the past month. Furthermore, increased focus on delivery and accelerated deployment of Experience of the Future restaurants in the United States should boost its performance. These apart, the company’s efforts to drive growth in International Lead & High Growth Markets bode well. In fact, global comps at McDonald’s have been positive over the trailing 13 quarters. Yet, high labor costs and currency headwinds remain major concerns. Moreover, revenues have been under pressure for quite some time due to strategic refranchising initiatives. Even its heightened focus on refranchising should cut the capital requirements and facilitate EPS growth.”
Several other brokerages also recently commented on MCD. Barclays set a $198.00 price objective on shares of Mcdonald’s and gave the company a buy rating in a research report on Monday, November 19th. Morgan Stanley upgraded shares of Mcdonald’s from an equal weight rating to an overweight rating and lifted their price target for the company from $173.00 to $210.00 in a report on Thursday, November 29th. Piper Jaffray Companies lifted their price target on shares of Mcdonald’s to $194.00 and gave the company an overweight rating in a report on Wednesday, November 28th. Jefferies Financial Group reiterated a buy rating and issued a $200.00 price target on shares of Mcdonald’s in a report on Tuesday. Finally, Cowen lifted their price target on shares of Mcdonald’s from $190.00 to $205.00 and gave the company an outperform rating in a report on Friday, November 9th. Seven analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company’s stock. Mcdonald’s has a consensus rating of Buy and an average target price of $191.69.
Shares of MCD stock opened at $182.96 on Wednesday. The firm has a market cap of $142.97 billion, a PE ratio of 27.47, a PEG ratio of 2.72 and a beta of 0.55. Mcdonald’s has a one year low of $146.84 and a one year high of $190.88.
Mcdonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, October 23rd. The fast-food giant reported $2.10 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.99 by $0.11. The firm had revenue of $5.37 billion for the quarter, compared to the consensus estimate of $5.28 billion. Mcdonald’s had a net margin of 24.56% and a negative return on equity of 116.43%. The company’s revenue was down 6.7% on a year-over-year basis. During the same period last year, the firm earned $1.76 EPS. On average, analysts anticipate that Mcdonald’s will post 7.76 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, December 17th. Stockholders of record on Monday, December 3rd will be issued a $1.16 dividend. The ex-dividend date is Friday, November 30th. This is an increase from Mcdonald’s’s previous quarterly dividend of $1.01. This represents a $4.64 dividend on an annualized basis and a dividend yield of 2.54%. Mcdonald’s’s payout ratio is 69.67%.
In other news, CEO Stephen Easterbrook sold 201,123 shares of the business’s stock in a transaction dated Wednesday, October 24th. The shares were sold at an average price of $175.63, for a total value of $35,323,232.49. Following the sale, the chief executive officer now directly owns 48,925 shares in the company, valued at approximately $8,592,697.75. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Francesca A. Debiase sold 15,136 shares of the business’s stock in a transaction dated Wednesday, October 24th. The stock was sold at an average price of $176.17, for a total transaction of $2,666,509.12. Following the completion of the sale, the executive vice president now owns 17,306 shares in the company, valued at $3,048,798.02. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 221,041 shares of company stock worth $38,839,407. Insiders own 0.22% of the company’s stock.
Several institutional investors have recently bought and sold shares of MCD. CSat Investment Advisory L.P. bought a new stake in shares of Mcdonald’s in the 2nd quarter worth about $104,000. Quad Cities Investment Group LLC purchased a new position in shares of Mcdonald’s during the 2nd quarter worth about $110,000. NuWave Investment Management LLC boosted its stake in shares of Mcdonald’s by 2,485.2% during the 3rd quarter. NuWave Investment Management LLC now owns 698 shares of the fast-food giant’s stock worth $117,000 after purchasing an additional 671 shares during the period. Truvestments Capital LLC purchased a new position in shares of Mcdonald’s during the 3rd quarter worth about $122,000. Finally, Sound Income Strategies LLC boosted its stake in shares of Mcdonald’s by 69.2% during the 3rd quarter. Sound Income Strategies LLC now owns 743 shares of the fast-food giant’s stock worth $124,000 after purchasing an additional 304 shares during the period. Hedge funds and other institutional investors own 67.22% of the company’s stock.
Mcdonald’s Company Profile
McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2017, the company operated 37,241 restaurants, including 34,108 franchised restaurants comprising 21,366 franchised to conventional franchisees, 6,945 licensed to developmental licensees, and 5,797 licensed to foreign affiliates; and 3,133 company-operated restaurants.
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