BTIG Research Lowers McDonald’s (NYSE:MCD) Price Target to $295.00

McDonald’s (NYSE:MCD) had its price target dropped by equities research analysts at BTIG Research from $350.00 to $295.00 in a research report issued on Thursday, Benzinga reports. The firm currently has a “buy” rating on the fast-food giant’s stock. BTIG Research’s target price suggests a potential upside of 23.89% from the company’s previous close.

A number of other research analysts have also weighed in on the company. Weiss Ratings restated a “hold (c)” rating on shares of McDonald’s in a report on Friday, September 18th. Robert W. Baird raised shares of McDonald’s to a “hold” rating in a research note on Monday, August 24th. Needham & Company LLC reaffirmed a “buy” rating on shares of McDonald’s in a research note on Monday. Wells Fargo & Company dropped their price target on McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research report on Thursday, July 16th. Finally, Mizuho cut their price objective on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, McDonald’s currently has a consensus rating of “Moderate Buy” and an average target price of $313.96.

McDonald’s Stock Down 4.9%

MCD stock opened at $238.11 on Thursday. McDonald’s has a 52 week low of $234.03 and a 52 week high of $341.75. The firm has a 50-day simple moving average of $263.58 and a 200-day simple moving average of $281.71. The stock has a market capitalization of $168.50 billion, a P/E ratio of 19.34, a P/E/G ratio of 2.71 and a beta of 0.41.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.McDonald’s’s revenue was up 3.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.19 EPS. On average, analysts expect that McDonald’s will post 12.88 earnings per share for the current year.

Institutional Investors Weigh In On McDonald’s

Institutional investors have recently modified their holdings of the company. State Street Corp raised its stake in shares of McDonald’s by 2.7% during the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock worth $10,997,789,000 after buying an additional 959,140 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of McDonald’s by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock valued at $5,195,965,000 after acquiring an additional 76,090 shares in the last quarter. Norges Bank acquired a new stake in shares of McDonald’s during the fourth quarter valued at $2,890,438,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in McDonald’s by 7.4% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant’s stock worth $1,699,314,000 after purchasing an additional 384,762 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its stake in McDonald’s by 0.8% in the 4th quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant’s stock valued at $1,614,843,000 after purchasing an additional 40,506 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s raised its quarterly dividend by nearly 4%, reinforcing its appeal to income-focused investors and signaling confidence in long-term cash generation. McDonald’s Increased Its Dividend by Nearly 4%
• Positive Sentiment: The company unveiled its NEXT strategy, including restaurant remodels, employee training, improved food and service, hand-breaded and grilled chicken offerings, expanded beverages, and AI-enabled ordering technology. Management expects these investments to improve restaurant economics and support market-share gains over time. McDonald’s will spend big on restaurant upgrades
• Positive Sentiment: McDonald’s is testing a restaurant media network, including advertising on digital ordering boards, with a long-term goal of building a potentially meaningful new revenue stream. Why McDonald’s is following Walmart and Amazon into advertising
• Neutral Sentiment: The company plans to bring back its Monopoly promotion on October 6, including a $1 million cash prize, in an effort to increase customer engagement. The promotion could help traffic but is unlikely to address the company’s broader cost and execution challenges by itself. McDonald’s Takes a Chance by Bringing Back Monopoly
• Negative Sentiment: McDonald’s expects industry traffic in its wholly owned markets to remain flat while inflation stays elevated. CEO Chris Kempczinski said management is not expecting meaningful near-term improvement, raising concerns about weak sales growth and prolonged pressure on consumers. McDonald’s expects inflation to keep traffic flat
• Negative Sentiment: The centerpiece of NEXT is approximately $8.5 billion in franchisee support through 2036, including about $5 billion through 2030 for rent relief, remodels, equipment, technology and training. Investors viewed the large, front-loaded commitment as a risk to cash flow, margins and shareholder returns before the benefits materialize. Why McDonald’s Shares Are Plunging Today
• Negative Sentiment: Analysts and investors questioned whether chicken innovation, restaurant refreshes and technology upgrades will generate enough incremental traffic to justify the spending, particularly as competition rises and consumers remain value-conscious.

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.