McDonald’s Corporation (MCD) – What Are Researchers Thinking About This Stock?

Shares of McDonald’s Corporation (NYSE:MCD) have received an average rating of “Moderate Buy” from the thirty-eight ratings firms that are covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, twenty-one have assigned a buy rating and two have assigned a strong buy rating to the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $297.82.

A number of research analysts have recently commented on the company. Needham & Company LLC reissued a “buy” rating on shares of McDonald’s in a report on Monday, September 21st. Morgan Stanley reduced their price objective on shares of McDonald’s from $308.00 to $297.00 and set an “equal weight” rating for the company in a report on Monday, September 28th. HC Wainwright set a $250.00 price target on shares of McDonald’s in a research report on Friday, September 25th. Loop Capital reduced their price target on shares of McDonald’s from $301.00 to $273.00 and set a “hold” rating for the company in a research note on Wednesday, August 5th. Finally, Guggenheim reduced their price target on shares of McDonald’s from $290.00 to $250.00 and set a “neutral” rating for the company in a research note on Monday, October 5th.

McDonald’s Price Performance

NYSE:MCD opened at $275.30 on Friday. McDonald’s has a 12-month low of $229.20 and a 12-month high of $341.75. The firm has a market capitalization of $194.30 billion, a P/E ratio of 21.78, a P/E/G ratio of 3.26 and a beta of 0.42. The business has a 50 day simple moving average of $249.73 and a 200 day simple moving average of $282.16.

McDonald’s (NYSE:MCD) last issued its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share for the quarter, topping the consensus estimate of $3.38 by $0.19. McDonald’s had a negative return on equity of 826.29% and a net margin of 32.38%. The firm had revenue of $7.16 billion for the quarter, compared to analyst estimates of $7.28 billion. During the same period last year, the company earned $3.22 earnings per share. The firm’s revenue for the quarter was up 1.1% on a year-over-year basis. Research analysts anticipate that McDonald’s will post 12.91 EPS for the current fiscal year.

McDonald’s Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a $1.93 dividend. This represents a $7.72 annualized dividend and a dividend yield of 2.8%. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. McDonald’s’s payout ratio is currently 61.08%.

Institutional Investors Weigh In On McDonald’s

Hedge funds and other institutional investors have recently bought and sold shares of the business. GKV Capital Management Co. Inc. bought a new stake in McDonald’s in the first quarter worth $33,000. Valued Wealth Advisors LLC increased its position in McDonald’s by 121.1% during the third quarter. Valued Wealth Advisors LLC now owns 168 shares of the fast-food giant’s stock worth $39,000 after buying an additional 92 shares during the last quarter. Burkett Financial Services LLC raised its holdings in McDonald’s by 2,312.5% during the third quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock valued at $45,000 after buying an additional 185 shares in the last quarter. POM Investment Strategies LLC raised its holdings in McDonald’s by 46.2% during the second quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock valued at $47,000 after buying an additional 55 shares in the last quarter. Finally, Westfuller Advisors LLC raised its holdings in McDonald’s by 140.0% during the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock valued at $49,000 after buying an additional 105 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors.

McDonald’s News Roundup

Investors following MCD have been watching these news items:

• Positive Sentiment: McDonald’s is rolling out Pokémon Happy Meals and bringing back a popular holiday menu item. These promotions could attract customers and support near-term traffic, although their financial impact is uncertain. McDonald’s rolls out Pokémon Happy Meal
• Neutral Sentiment: In Japan, new chicken sandwiches reportedly sold so well that the company pulled them. Strong demand is encouraging, but the item’s unavailability could limit sales until supply catches up. McDonald’s Japan pulls new chicken sandwiches after they sell too well
• Negative Sentiment: A market commentary says Treasury yields near 5% are pressuring valuations across stocks. Higher yields can make dividend-paying shares like MCD less attractive relative to bonds and weigh on valuation multiples. Bonds Are Paying 5% Again

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.