Robert W. Baird Cuts McDonald’s (NYSE:MCD) Price Target to $285.00

McDonald’s (NYSE:MCD) had its price objective trimmed by Robert W. Baird from $305.00 to $285.00 in a research report report published on Wednesday, Marketbeat Ratings reports. The brokerage currently has a neutral rating on the fast-food giant’s stock.

A number of other analysts have also recently weighed in on MCD. Mizuho lowered their price objective on McDonald’s from $300.00 to $290.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. JPMorgan Chase & Co. reduced their target price on McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. Sanford C. Bernstein reiterated a “market perform” rating on shares of McDonald’s in a research note on Monday, June 22nd. KeyCorp lowered their price target on McDonald’s from $315.00 to $305.00 and set an “overweight” rating for the company in a report on Wednesday. Finally, Weiss Ratings lowered McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, McDonald’s has an average rating of “Moderate Buy” and an average price target of $325.44.

McDonald’s Trading Down 0.7%

NYSE MCD opened at $274.39 on Wednesday. McDonald’s has a 12 month low of $260.96 and a 12 month high of $341.75. The stock has a market cap of $194.96 billion, a price-to-earnings ratio of 22.29, a PEG ratio of 3.01 and a beta of 0.41. The company’s 50 day moving average is $274.03 and its two-hundred day moving average is $296.42.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 512.80%. The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. During the same quarter last year, the firm earned $3.19 EPS. The firm’s revenue for the quarter was up 3.7% compared to the same quarter last year. Sell-side analysts forecast that McDonald’s will post 12.87 EPS for the current year.

McDonald’s Announces Dividend

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

Insider Activity at McDonald’s

In other news, insider Joseph M. Erlinger sold 5,252 shares of McDonald’s stock in a transaction 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 directly owned 7,734 shares of the company’s stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 8,348 shares of company stock valued at $2,355,634. Insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

A number of hedge funds have recently added to or reduced their stakes in the company. Your Advocates Ltd. LLP acquired a new position in McDonald’s during the fourth quarter worth $27,000. IFC & Insurance Marketing Inc. acquired a new position in McDonald’s during the fourth quarter worth $29,000. Abound Financial LLC purchased a new stake in McDonald’s during the fourth quarter worth $30,000. Purpose Unlimited Inc. purchased a new stake in McDonald’s during the fourth quarter worth $31,000. Finally, DecisionPoint Financial LLC grew 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 valued at $31,000 after purchasing an additional 97 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

Trending Headlines about McDonald’s

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

• Positive Sentiment: Freedom Capital upgraded McDonald’s (MCD) from “hold” to “strong-buy,” while BTIG reiterated its “buy” rating. These calls suggest some analysts view the recent selloff as excessive and expect a recovery. McDonald’s analyst upgrade
• Positive Sentiment: McDonald’s remains attractive to income-focused investors because of its long record of dividend payments. Its latest quarterly earnings also exceeded consensus expectations, and global markets continue to provide support. McDonald’s dividend history
• Neutral Sentiment: Forecast coverage is mixed. Morgan Stanley lowered its price target to $319, while RBC and Robert W. Baird issued pessimistic outlooks; a separate forecast highlighted potential upside from McDonald’s loyalty scale and the faster-than-expected rollout of its beverage platform. Morgan Stanley lowers McDonald’s price target
• Negative Sentiment: The main issue is weak U.S. performance. Management acknowledged an execution problem involving the value menu, digital offers, restaurant workload, and marketing—not a flawed overall strategy. Customers continue to demand better value, raising concerns about traffic and near-term sales growth. McDonald’s Q2 earnings call
• Negative Sentiment: Competitive pressure is increasing, with Burger King reporting stronger U.S. sales momentum as McDonald’s growth falters. Wendy’s weak traffic and withdrawn outlook add to broader investor concern about value-oriented fast-food demand. Burger King gains against McDonald’s
• Negative Sentiment: McDonald’s has pushed back its goal of reaching 50,000 restaurants, suggesting that economic conditions are slowing expansion. The end of its Krispy Kreme doughnut partnership also removes a recent menu-growth initiative. McDonald’s expansion plans

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.