McDonald’s (NYSE:MCD – Get Free Report) had its target price decreased by investment analysts at JPMorgan Chase & Co. from $280.00 to $260.00 in a research report issued on Thursday, Benzinga reports. The brokerage presently has an “overweight” rating on the fast-food giant’s stock. JPMorgan Chase & Co.‘s price target would suggest a potential upside of 8.04% from the company’s previous close.
MCD has been the subject of several other research reports. Deutsche Bank Aktiengesellschaft decreased 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. Evercore restated an “outperform” rating on shares of McDonald’s in a research report on Thursday. BTIG Research dropped their price target on McDonald’s from $350.00 to $295.00 and set a “buy” rating on the stock in a research report on Thursday. Freedom Capital upgraded McDonald’s from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 5th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of McDonald’s in a research report on Friday, September 18th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $307.29.
Check Out Our Latest Stock Report on MCD
McDonald’s Trading Up 1.0%
McDonald’s (NYSE:MCD – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period in the previous year, the company posted $3.19 EPS. The company’s revenue was up 3.7% compared to the same quarter last year. As a group, research analysts expect that McDonald’s will post 12.88 earnings per share for the current year.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently bought and sold shares of MCD. Abound Financial LLC bought a new stake in McDonald’s during the 4th quarter valued at approximately $30,000. Purpose Unlimited Inc. bought a new position in McDonald’s in the 4th quarter worth approximately $31,000. GKV Capital Management Co. Inc. acquired a new position in shares of McDonald’s during the first quarter worth approximately $33,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of McDonald’s during the first quarter worth approximately $43,000. Finally, Financial Life Planners bought a new stake in shares of McDonald’s in the first quarter valued at approximately $51,000. Institutional investors and hedge funds own 70.29% of the company’s stock.
Key Headlines Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s announced a nearly 4% dividend increase, reinforcing its appeal as a mature income investment and supporting the case that the stock’s valuation has become more attractive after its decline. McDonald’s Increased Its Dividend by Nearly 4%
- Positive Sentiment: The company’s NEXT strategy calls for approximately $8.5 billion of franchisee support through 2036, including restaurant remodels, technology upgrades, employee training and productivity improvements. Management expects the investments to improve restaurant economics and margins over time. McDonald’s bets $8.5 billion on a productivity makeover
- Positive Sentiment: Growth initiatives include hand-breaded and grilled chicken, protein-focused bowls and wraps aimed at attracting health-conscious consumers and GLP-1 users, as well as AI-enabled ordering and a potential advertising network. These efforts could diversify revenue and help recover market share. Why McDonald’s is following Walmart and Amazon into advertising
- Positive Sentiment: BTIG maintained a “buy” rating with a $295 price target, while Royal Bank of Canada’s $285 target still implies substantial upside from recent levels, suggesting analysts see long-term recovery potential.
- Neutral Sentiment: Royal Bank of Canada lowered its target to $285 and shifted to “sector perform,” reflecting a more cautious near-term outlook despite retaining meaningful upside.
- Negative Sentiment: Management warned that elevated inflation and flat customer traffic could persist. Investors were also concerned that roughly $5 billion of the franchisee support plan will be spent by 2030, creating significant near-term cash commitments before the benefits of modernization are realized. McDonald’s expects inflation to keep traffic flat
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.
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