McDonald’s Corporation (NYSE:MCD) Stock Has Consensus Price Target of $295.94 According to Analysts

Shares of McDonald’s Corporation (NYSE:MCD) have been given an average recommendation of “Moderate Buy” by the thirty-seven research firms that are presently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, thirteen have issued a hold recommendation, twenty-two have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $295.94.

Several equities research analysts have recently commented on MCD shares. Deutsche Bank Aktiengesellschaft dropped their target price on shares of McDonald’s from $325.00 to $300.00 and set a “buy” rating for the company in a research report on Monday, September 14th. Gordon Haskett decreased their price target on shares of McDonald’s from $315.00 to $285.00 and set a “buy” rating for the company in a research note on Thursday, September 24th. Loop Capital lowered their price objective on shares of McDonald’s from $301.00 to $273.00 and set a “hold” rating for the company in a report on Wednesday, August 5th. Bank of America raised their price objective on shares of McDonald’s from $339.00 to $343.00 in a report on Wednesday, August 5th. Finally, Sanford C. Bernstein cut their price objective on McDonald’s from $295.00 to $250.00 and set a “market perform” rating on the stock in a research report on Thursday, October 8th.

Institutional Trading of McDonald’s

A number of hedge funds and other institutional investors have recently modified their holdings of the business. IFP Advisors Inc grew its holdings in McDonald’s by 22.2% in the third quarter. IFP Advisors Inc now owns 39,410 shares of the fast-food giant’s stock worth $9,101,000 after purchasing an additional 7,147 shares during the period. Finer Wealth Management Inc. boosted its position in shares of McDonald’s by 6.2% in the 3rd quarter. Finer Wealth Management Inc. now owns 11,501 shares of the fast-food giant’s stock worth $2,656,000 after purchasing an additional 676 shares in the last quarter. Encompass More Asset Management boosted its position in shares of McDonald’s by 2.6% in the 3rd quarter. Encompass More Asset Management now owns 2,263 shares of the fast-food giant’s stock worth $523,000 after purchasing an additional 57 shares in the last quarter. Fiscal Wisdom Wealth Management LLC grew its stake in shares of McDonald’s by 5.9% in the 3rd quarter. Fiscal Wisdom Wealth Management LLC now owns 2,379 shares of the fast-food giant’s stock worth $549,000 after buying an additional 132 shares during the last quarter. Finally, Guardian Asset Advisors LLC grew its stake in shares of McDonald’s by 1.8% in the 3rd quarter. Guardian Asset Advisors LLC now owns 5,111 shares of the fast-food giant’s stock worth $1,183,000 after buying an additional 88 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald’s Price Performance

MCD opened at $242.99 on Tuesday. McDonald’s has a one year low of $229.20 and a one year high of $341.75. The business has a 50 day simple moving average of $252.05 and a two-hundred day simple moving average of $272.09. The firm has a market capitalization of $171.95 billion, a price-to-earnings ratio of 19.74, a PEG ratio of 2.72 and a beta of 0.44.

McDonald’s (NYSE:MCD) last announced its 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. The company had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. The firm’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.19 earnings per share. As a group, sell-side analysts expect that McDonald’s will post 12.84 EPS for the current fiscal year.

McDonald’s Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a dividend of $1.93 per share. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.2%. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.

More McDonald’s News

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

• Positive Sentiment: McDonald’s is bringing back a popular limited-time meal, while Halloween Boo Buckets are returning with a Disney-themed design. The promotions could support traffic, customer engagement and comparable-store sales. McDonald’s Is Bringing Back a Fan-Favorite Meal
• Positive Sentiment: McDonald’s dividend remains a key attraction: the company has joined the “Dividend King” group after decades of consecutive increases. Income-oriented investors may view the yield above 3% and recurring franchise cash flow favorably. McDonald’s Dividend King Status
• Positive Sentiment: Unusually heavy call-option activity and a broader rotation from technology into beaten-down consumer stocks may be providing additional short-term support for MCD. Consumer Stocks Get a Lift as Investors Rotate Out of Tech
• Neutral Sentiment: Analysts and market commentators generally see the stock as near fair value following its dividend increase. McDonald’s has fallen substantially this year, but investors still need evidence that cash-flow and earnings growth can justify the valuation. McDonald’s May Trade Near Fair Value
• Neutral Sentiment: The company’s planned multibillion-dollar modernization, including drive-thru technology and the “Archy” AI initiative, could improve efficiency over time, although execution and return-on-investment risks remain. McDonald’s Overhaul and AI Drive-Thru
• Negative Sentiment: McDonald’s faces a challenging third-quarter outlook, with weak U.S. sales and questions about value-menu execution. Renewed promotions and operational fixes will need to translate into sustained traffic and earnings growth. Challenging Q3 Outlook
• Negative Sentiment: Some investors argue that an attractive dividend alone is insufficient because the stock’s valuation leaves limited room for disappointment if sales and earnings remain pressured. McDonald’s Dividend Yield and Valuation

About McDonald’s

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.