Zacks Reaffirms Neutral Rating for McDonald's Co. (MCD)
McDonald's Co. (NYSE:MCD)‘s stock had its “neutral” rating reissued by Zacks in a note issued to investors on Friday. They currently have a $99.00 price objective on the stock. Zacks‘s price objective indicates a potential upside of 4.73% from the stock’s previous close.
Zacks’ analyst wrote, “McDonald’s posted lackluster second-quarter 2014 results with both earnings and revenues missing the Zacks Consensus Estimate. However, both top- and bottom lines grew year over year. Global comps remained flat due to lower guest traffic. Though the fast-food chain is trying to strengthen its position by offering value propositions and an innovative menu, it has become extremely vulnerable to macroeconomic headwinds like intense competition in the U.S., decelerating growth in Asia and sluggish economic recovery in Europe. The company expects results to be under pressure in the second half of 2014 due to a sluggish business environment, commodity cost pressures and recent food safety scare in China. Despite these concerns, we still believe that the company has strong fundamentals. McDonald’s has historically enjoyed moderate growth prospects with its exposure to under-penetrated international markets. Thus, we maintain our Neutral recommendation on the stock.”
MCD has been the subject of a number of other recent research reports. Analysts at Citigroup Inc. reiterated a “neutral” rating on shares of McDonald's Co. in a research note on Tuesday. They now have a $101.00 price target on the stock, down previously from $103.00. Separately, analysts at Deutsche Bank reiterated a “buy” rating on shares of McDonald's Co. in a research note on Monday, August 11th. They now have a $98.00 price target on the stock, down previously from $105.00. Finally, analysts at Telsey Advisory Group cut their price target on shares of McDonald's Co. from $103.00 to $97.00 in a research note on Monday, August 11th. They now have a “not rated” rating on the stock. Three equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and seven have assigned a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $94.89.
McDonald's Co. (NYSE:MCD) traded down 0.16% during mid-day trading on Friday, hitting $94.38. 2,490,844 shares of the company’s stock traded hands. McDonald's Co. has a 52 week low of $92.22 and a 52 week high of $103.78. The stock has a 50-day moving average of $96.32 and a 200-day moving average of $98.34. The company has a market cap of $92.674 billion and a price-to-earnings ratio of 17.12.
McDonald's Co. (NYSE:MCD) last released its earnings data on Tuesday, July 22nd. The company reported $1.40 earnings per share for the quarter, missing the analysts’ consensus estimate of $1.44 by $0.04. The company had revenue of $7.18 billion for the quarter, compared to the consensus estimate of $7.28 billion. During the same quarter last year, the company posted $1.38 earnings per share. McDonald's Co.’s revenue was up 1.4% compared to the same quarter last year. On average, analysts predict that McDonald's Co. will post $5.57 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd will be paid a dividend of $0.81 per share. This represents a $3.24 annualized dividend and a dividend yield of 3.43%. The ex-dividend date of this dividend is Thursday, August 28th.
McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry.
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