McDonald’s (NYSE:MCD) Given New $295.00 Price Target at Royal Bank Of Canada

McDonald’s (NYSE:MCD) had its price target cut by equities researchers at Royal Bank Of Canada from $305.00 to $295.00 in a note issued to investors on Wednesday. The firm presently has a “sector perform” rating on the fast-food giant’s stock. Royal Bank Of Canada’s price objective would indicate a potential upside of 9.93% from the stock’s previous close.

A number of other research analysts have also issued reports on the stock. Piper Sandler set a $286.00 price objective on shares of McDonald’s in a report on Tuesday. Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and boosted their target price for the stock from $260.00 to $306.00 in a report on Thursday, April 23rd. Robert W. Baird set a $305.00 price target on shares of McDonald’s in a research note on Thursday, May 7th. Wells Fargo & Company cut their price target on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a report on Thursday, July 16th. Finally, BTIG Research reissued a “buy” rating and issued a $350.00 price objective on shares of McDonald’s in a research note on Wednesday. Sixteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $329.44.

McDonald’s Stock Performance

Shares of MCD opened at $268.35 on Wednesday. McDonald’s has a 52 week low of $260.96 and a 52 week high of $341.75. The stock has a market capitalization of $190.66 billion, a price-to-earnings ratio of 22.12, a PEG ratio of 2.85 and a beta of 0.41. The stock has a fifty day moving average of $274.32 and a 200-day moving average of $297.05.

McDonald’s (NYSE:MCD) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.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 firm earned $3.19 EPS. The business’s revenue for the quarter was up 3.7% compared to the same quarter last year. As a group, equities analysts forecast that McDonald’s will post 12.85 EPS for the current year.

Insider Buying and Selling

In other news, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,348 shares of company stock worth $2,355,634 in the last 90 days. Corporate insiders own 0.26% of the company’s stock.

Institutional Trading of McDonald’s

Large investors have recently bought and sold shares of the business. Your Advocates Ltd. LLP acquired a new position in shares of McDonald’s in the 4th quarter valued at about $27,000. IFC & Insurance Marketing Inc. acquired a new stake in McDonald’s during the fourth quarter worth approximately $29,000. Abound Financial LLC bought a new stake in McDonald’s in the fourth quarter worth approximately $30,000. DecisionPoint Financial LLC increased its holdings in McDonald’s by 1,616.7% in the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock worth $31,000 after purchasing an additional 97 shares in the last quarter. Finally, Entrust Financial LLC acquired a new position in McDonald’s in the fourth quarter valued at approximately $31,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s reported adjusted earnings of $3.38 per share, ahead of the $3.32 analyst consensus and up from $3.19 a year earlier. Revenue rose 3.7% to $7.10 billion, while stronger franchised margins and record restaurant margins supported profits despite revenue coming in slightly below expectations. McDonald’s Q2 Earnings Surpass Estimates
• Positive Sentiment: Comparable sales increased across all three operating segments, with international markets providing important support as the U.S. business slowed. Management said the company sees an opportunity to improve value, service and food quality in the domestic market. McDonald’s posts strong second quarter profit
• Neutral Sentiment: McDonald’s appointed longtime executive Skye Anderson as president of McDonald’s USA, replacing Joe Erlinger. Anderson will oversee nearly 14,000 U.S. restaurants and is tasked with restoring traffic and improving execution; the change offers a potential turnaround catalyst but also highlights the urgency of the domestic slowdown. McDonald’s names Skye Anderson as U.S. president
• Negative Sentiment: U.S. comparable sales rose only 0.8%, down from 2.5% a year earlier and below expectations. Traffic weakened as lower-income consumers remained under pressure from elevated prices and gas costs. McDonald’s US sales disappoint
• Negative Sentiment: The company acknowledged that its value strategy became overly complicated: too many simultaneous promotions and reduced digital deal activity confused customers and employees, failing to bring back enough loyal diners. McDonald’s also delayed its goal of reaching 50,000 global restaurants from 2027 to 2028, signaling a more cautious growth outlook. McDonald’s admits its value meals have become too confusing

About McDonald’s

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.