McDonald’s (NYSE:MCD) Stock Sees Heavy Call Option Buying

McDonald’s Corporation (NYSE:MCD) saw unusually large options trading activity on Thursday. Traders acquired 42,937 call options on the company. This represents an increase of 24% compared to the average daily volume of 34,725 call options.

McDonald’s Trading Up 1.9%

NYSE:MCD traded up $4.52 during trading hours on Thursday, reaching $242.83. 3,876,677 shares of the company traded hands, compared to its average volume of 4,237,482. The business’s 50-day moving average price is $253.35 and its two-hundred day moving average price is $272.74. The stock has a market capitalization of $171.84 billion, a P/E ratio of 19.73, a P/E/G ratio of 2.64 and a beta of 0.44. McDonald’s has a 1 year low of $229.20 and a 1 year high of $341.75.

McDonald’s (NYSE:MCD) last released 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. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. The firm had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.13 billion. During the same period in the prior year, the firm posted $3.19 earnings per share. The company’s quarterly revenue was up 3.7% on a year-over-year basis. As a group, equities analysts anticipate that McDonald’s will post 12.84 EPS for the current year.

McDonald’s Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a $1.93 dividend. This represents a $7.72 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Tuesday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s dividend payout ratio (DPR) is presently 62.71%.

More McDonald’s News

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

• Positive Sentiment: McDonald’s shares advanced even as the broader market weakened, indicating some relative strength and investor interest at depressed valuation levels. McDonald’s Increases Despite Market Slip
• Positive Sentiment: The company’s roughly $8.5 billion franchisee-support and modernization plan, along with personalized digital offers, value meals and streamlined marketing, could improve traffic and sales if execution improves. The planned “Archy” drive-through AI system may also support efficiency, although its benefits remain unproven. McDonald’s $8.5B Fix
• Positive Sentiment: Renewed promotions, including the Monopoly Go collaboration and potential Disney-villain Boo Buckets, could provide short-term customer engagement and seasonal sales support, though these campaigns are unlikely to change the long-term outlook by themselves. Monopoly Go Returns to McDonald’s
• Neutral Sentiment: At about 18 times earnings, MCD’s valuation may already reflect some of the turnaround risk, but investors still need evidence that the spending plan can restore sustainable growth. McDonald’s Trades at 18 Times Earnings
• Negative Sentiment: Shares remain down sharply over six months as weak U.S. sales, ineffective value-menu execution and reduced earnings estimates weigh on investor confidence. Analysts are questioning whether promotions and operational fixes can reverse the slowdown. McDonald’s Stock Down 23 Percent in Six Months
• Negative Sentiment: A proposed class-action lawsuit alleging problematic AI-driven menu pricing creates legal, reputational and regulatory risk, while reports of a poorly reviewed U.S. location highlight potential service and franchise-operator issues. McDonald’s AI Menu Pricing Lawsuit

Institutional Trading of McDonald’s

Institutional investors and hedge funds have recently bought and sold shares of the company. Sound Income Strategies LLC boosted its holdings in shares of McDonald’s by 0.6% during the 1st quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant’s stock worth $1,718,000 after purchasing an additional 35 shares during the last quarter. Jacobsen Capital Management boosted its stake in McDonald’s by 2.9% during the first quarter. Jacobsen Capital Management now owns 1,267 shares of the fast-food giant’s stock worth $394,000 after buying an additional 36 shares during the last quarter. Sterling Investment Counsel LLC boosted its stake in McDonald’s by 0.7% during the first quarter. Sterling Investment Counsel LLC now owns 5,303 shares of the fast-food giant’s stock worth $1,648,000 after buying an additional 37 shares during the last quarter. Legacy Wealth Managment LLC ID boosted its stake in McDonald’s by 11.0% during the first quarter. Legacy Wealth Managment LLC ID now owns 372 shares of the fast-food giant’s stock worth $116,000 after buying an additional 37 shares during the last quarter. Finally, Millstone Evans Group LLC grew its holdings in McDonald’s by 2.5% in the 1st quarter. Millstone Evans Group LLC now owns 1,532 shares of the fast-food giant’s stock valued at $476,000 after buying an additional 38 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

MCD has been the subject of a number of recent analyst reports. Needham & Company LLC reaffirmed a “buy” rating on shares of McDonald’s in a research report on Monday, September 21st. Sanford C. Bernstein dropped their target price on shares of McDonald’s from $295.00 to $250.00 and set a “market perform” rating for the company in a research report on Thursday, October 8th. Daiwa Securities Group decreased their price target on shares of McDonald’s from $309.00 to $293.00 and set an “outperform” rating for the company in a research note on Thursday, August 6th. Evercore lowered their target price on McDonald’s from $320.00 to $300.00 and set an “outperform” rating for the company in a research note on Thursday, September 24th. Finally, Robert W. Baird reduced their price target on McDonald’s from $285.00 to $250.00 and set a “neutral” rating on the stock in a research note on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $295.94.

McDonald’s Company Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.