McDonald’s Corporation (NYSE:MCD) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of McDonald’s Corporation (NYSE:MCD) have received an average recommendation of “Moderate Buy” from the twenty-eight research firms that are currently covering the firm, MarketBeat reports. Twelve equities research analysts have rated the stock with a hold recommendation and sixteen have given a buy recommendation to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $325.44.

MCD has been the subject of a number of research reports. Morgan Stanley dropped their price objective on shares of McDonald’s from $322.00 to $319.00 and set an “equal weight” rating for the company in a report on Wednesday. Weiss Ratings downgraded McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. KeyCorp lowered their target price on McDonald’s from $315.00 to $305.00 and set an “overweight” rating for the company in a research report on Wednesday. Guggenheim set a $290.00 target price on McDonald’s in a report on Wednesday. Finally, TD Cowen reaffirmed a “hold” rating on shares of McDonald’s in a report on Tuesday.

McDonald’s Stock Up 2.0%

MCD stock opened at $273.67 on Thursday. The firm has a market cap of $194.44 billion, a P/E ratio of 22.23, a P/E/G ratio of 2.89 and a beta of 0.41. The company’s 50-day moving average price is $274.17 and its two-hundred day moving average price is $296.80. McDonald’s has a 12 month low of $260.96 and a 12 month high of $341.75.

McDonald’s (NYSE:MCD) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. The firm had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 512.80%. The business’s revenue for the quarter was up 3.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.19 earnings per share. Equities analysts predict that McDonald’s will post 12.84 EPS for the current year.

McDonald’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s payout ratio is currently 60.44%.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s reported second-quarter adjusted earnings of $3.38 per share, above the $3.32 consensus estimate and up from $3.19 a year earlier. Comparable sales increased across all three operating segments, while franchised margins helped offset a revenue miss. McDonald’s Q2 Earnings Beat on Franchised Margins, Sales Miss
• Positive Sentiment: Analyst support remains mixed but includes BTIG’s reaffirmed “buy” rating and $350 price target, indicating substantial potential upside if the U.S. business improves. McDonald’s is also being highlighted as a solid dividend stock, which may appeal to income-focused investors amid market volatility. BTIG Research Rating 5 Solid Dividend Stocks to Buy in August
• Neutral Sentiment: McDonald’s appointed company veteran Skye Anderson as president of McDonald’s USA, replacing Joe Erlinger. The change is intended to improve value perception, service and traffic, but execution risks remain. McDonald’s Names Skye Anderson
• Neutral Sentiment: The company is testing new menu offerings and reconsidering its value strategy after acknowledging that its promotions became too complicated. Ending the Krispy Kreme partnership removes doughnuts from U.S. menus, with limited near-term financial impact expected. McDonald’s Rethinks Value Menu
• Negative Sentiment: U.S. comparable sales rose only 0.8% in the second quarter, slowing from 2.5% a year earlier and missing expectations. Management attributed weaker visits to ineffective value promotions, reduced digital discounts and continued pressure on lower-income consumers. McDonald’s Sales Slow After Deal Fatigue
• Negative Sentiment: McDonald’s delayed its goal of reaching 50,000 restaurants globally from 2027 to 2028, suggesting softer economic conditions are slowing its aggressive growth plan. Morgan Stanley, RBC and Baird also lowered their price targets, maintaining neutral or equivalent ratings. McDonald’s Journey to 50,000 Restaurants

Insider Activity at McDonald’s

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

Hedge Funds Weigh In On McDonald’s

Hedge funds and other institutional investors have recently bought and sold shares of the company. Fourth Dimension Wealth LLC boosted its position in McDonald’s by 44.3% during the second quarter. Fourth Dimension Wealth LLC now owns 3,149 shares of the fast-food giant’s stock valued at $851,000 after acquiring an additional 967 shares during the last quarter. Daymark Wealth Partners LLC raised its position in shares of McDonald’s by 3.8% in the 2nd quarter. Daymark Wealth Partners LLC now owns 35,864 shares of the fast-food giant’s stock worth $9,694,000 after acquiring an additional 1,307 shares in the last quarter. Miller Howard Investments Inc. NY bought a new stake in shares of McDonald’s during the 2nd quarter valued at about $52,940,000. Integrity Advisory Solutions LLC grew its stake in McDonald’s by 96.8% during the second quarter. Integrity Advisory Solutions LLC now owns 2,383 shares of the fast-food giant’s stock worth $644,000 after purchasing an additional 1,172 shares during the period. Finally, Members Trust Co grew its stake in McDonald’s by 1.8% during the second quarter. Members Trust Co now owns 4,736 shares of the fast-food giant’s stock worth $1,280,000 after purchasing an additional 85 shares during the period. Institutional investors and hedge funds own 70.29% of the company’s stock.

McDonald’s Company Profile

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.