Mcdonald’s (NYSE:MCD) Shares Down 5% on Disappointing Earnings

Shares of Mcdonald’s Corp (NYSE:MCD) fell 5% on Tuesday following a weaker than expected earnings announcement. The company traded as low as $199.15 and last traded at $199.27, 9,662,349 shares traded hands during mid-day trading. An increase of 206% from the average session volume of 3,152,886 shares. The stock had previously closed at $209.85.

The fast-food giant reported $2.11 earnings per share for the quarter, missing analysts’ consensus estimates of $2.22 by ($0.11). The company had revenue of $5.43 billion for the quarter, compared to analysts’ expectations of $5.47 billion. Mcdonald’s had a negative return on equity of 92.02% and a net margin of 28.32%. The firm’s quarterly revenue was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.10 EPS.

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be given a dividend of $1.25 per share. The ex-dividend date of this dividend is Friday, November 29th. This is an increase from Mcdonald’s’s previous quarterly dividend of $1.16. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.51%. Mcdonald’s’s dividend payout ratio is presently 58.73%.

A number of brokerages have recently issued reports on MCD. Sanford C. Bernstein reaffirmed a “buy” rating on shares of Mcdonald’s in a research report on Friday, July 26th. Goldman Sachs Group began coverage on Mcdonald’s in a research report on Monday, July 29th. They set a “buy” rating and a $250.00 price target on the stock. Cleveland Research reaffirmed a “hold” rating on shares of Mcdonald’s in a research report on Friday, July 12th. UBS Group upped their price target on Mcdonald’s from $203.00 to $218.00 and gave the stock a “neutral” rating in a research report on Monday, July 29th. Finally, Jefferies Financial Group upped their price target on Mcdonald’s from $225.00 to $230.00 and gave the stock a “buy” rating in a research report on Friday, June 28th. Nine analysts have rated the stock with a hold rating and twenty-two have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $223.00.

In related news, VP Catherine A. Hoovel sold 457 shares of the company’s stock in a transaction on Friday, August 16th. The stock was sold at an average price of $218.15, for a total value of $99,694.55. Following the transaction, the vice president now directly owns 1,348 shares of the company’s stock, valued at approximately $294,066.20. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Silvia Lagnado sold 26,649 shares of the stock in a transaction dated Thursday, August 1st. The stock was sold at an average price of $212.58, for a total value of $5,665,044.42. Following the sale, the executive vice president now directly owns 40,129 shares in the company, valued at $8,530,622.82. The disclosure for this sale can be found here. 0.25% of the stock is owned by corporate insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Krueger & Catalano Capital Partners LLC grew its position in Mcdonald’s by 8.5% during the 3rd quarter. Krueger & Catalano Capital Partners LLC now owns 4,531 shares of the fast-food giant’s stock worth $973,000 after purchasing an additional 354 shares during the period. Segment Wealth Management LLC grew its position in Mcdonald’s by 1.4% during the 3rd quarter. Segment Wealth Management LLC now owns 33,880 shares of the fast-food giant’s stock worth $7,274,000 after purchasing an additional 472 shares during the period. Squar Milner Financial Services LLC grew its position in Mcdonald’s by 21.1% during the 3rd quarter. Squar Milner Financial Services LLC now owns 1,632 shares of the fast-food giant’s stock worth $350,000 after purchasing an additional 284 shares during the period. Prospera Financial Services Inc grew its position in Mcdonald’s by 12.9% during the 3rd quarter. Prospera Financial Services Inc now owns 14,788 shares of the fast-food giant’s stock worth $3,175,000 after purchasing an additional 1,693 shares during the period. Finally, MCF Advisors LLC grew its position in Mcdonald’s by 12.3% during the 3rd quarter. MCF Advisors LLC now owns 3,807 shares of the fast-food giant’s stock worth $817,000 after purchasing an additional 418 shares during the period. 67.65% of the stock is currently owned by institutional investors.

The firm has a 50-day simple moving average of $211.55 and a two-hundred day simple moving average of $207.08. The company has a market capitalization of $158.34 billion, a price-to-earnings ratio of 25.22, a P/E/G ratio of 3.10 and a beta of 0.49.

About Mcdonald’s (NYSE:MCD)

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, 2018, the company operated 37,855 restaurants, including 35,085 franchised restaurants comprising 21,685 franchised to conventional franchisees, 7,225 licensed to developmental licensees, and 6,175 licensed to foreign affiliates; and 2,770 company-operated restaurants.

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