McDonald’s (NYSE:MCD) Stock Price Expected to Rise, KeyCorp Analyst Says

McDonald’s (NYSE:MCD) had its target price increased by research analysts at KeyCorp from $340.00 to $354.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has an “overweight” rating on the fast-food giant’s stock. KeyCorp’s target price would suggest a potential upside of 6.71% from the stock’s previous close.

MCD has been the topic of several other reports. BMO Capital Markets reaffirmed an “outperform” rating on shares of McDonald’s in a research report on Thursday, November 6th. Jefferies Financial Group raised their price objective on McDonald’s from $360.00 to $375.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Barclays boosted their target price on McDonald’s from $372.00 to $380.00 and gave the stock an “overweight” rating in a report on Thursday, February 12th. Erste Group Bank upgraded shares of McDonald’s from a “hold” rating to a “buy” rating in a report on Wednesday, February 18th. Finally, Robert W. Baird set a $335.00 price target on shares of McDonald’s in a research report on Thursday, February 12th. Sixteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $338.07.

McDonald’s Price Performance

NYSE MCD opened at $331.75 on Tuesday. The company has a market cap of $235.68 billion, a P/E ratio of 27.76, a P/E/G ratio of 2.95 and a beta of 0.51. McDonald’s has a 12 month low of $283.47 and a 12 month high of $341.75. The company has a 50-day moving average of $317.58 and a 200-day moving average of $310.78.

McDonald’s (NYSE:MCD) last released its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.05 by $0.07. McDonald’s had a net margin of 31.85% and a negative return on equity of 343.90%. The business had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.81 billion. During the same period last year, the company earned $2.83 earnings per share. The company’s quarterly revenue was up 9.7% on a year-over-year basis. As a group, equities research analysts anticipate that McDonald’s will post 12.25 EPS for the current year.

Insider Transactions at McDonald’s

In related news, CEO Christopher J. Kempczinski sold 26,277 shares of the business’s stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $331.35, for a total value of $8,706,883.95. Following the transaction, the chief executive officer owned 22,900 shares in the company, valued at approximately $7,587,915. The trade was a 53.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Desiree Ralls-Morrison sold 2,486 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $320.00, for a total value of $795,520.00. Following the sale, the executive vice president owned 6,268 shares of the company’s stock, valued at approximately $2,005,760. This trade represents a 28.40% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 71,517 shares of company stock worth $23,655,503 over the last three months. Insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

Several institutional investors and hedge funds have recently made changes to their positions in MCD. Vanguard Group Inc. lifted its holdings in shares of McDonald’s by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after buying an additional 703,458 shares during the last quarter. State Street Corp raised its stake in 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 valued at $10,997,789,000 after purchasing an additional 959,140 shares during the last quarter. Geode Capital Management LLC boosted its holdings in McDonald’s by 0.4% in the 4th 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 purchasing an additional 76,090 shares during the period. Norges Bank acquired a new stake in McDonald’s in the 2nd quarter worth $2,780,712,000. Finally, Price T Rowe Associates Inc. MD grew its position in McDonald’s by 3.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock worth $2,895,768,000 after purchasing an additional 277,617 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

More McDonald’s News

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

• Positive Sentiment: KeyCorp raised its price target and kept an overweight rating, signaling analyst confidence and giving institutional investors a near-term upside catalyst. Read More
• Positive Sentiment: McDonald’s announced a €150m investment to open 25 restaurants across Ireland (five per year over five years), supporting international growth and unit-expansion thesis. McDonald’s to invest €150m in Ireland to open 25 new outlets
• Positive Sentiment: Marketing/promotional activity continues to drive traffic: a one-day $1 Egg McMuffin offer and an NHL collectible tie-in in Canada are examples of low-cost promotions that can boost same-store sales and customer frequency. Egg McMuffin promo NHL Star Sticks Meal
• Neutral Sentiment: The new “Big Arch” burger is generating heavy earned media and consumer trials — numerous reviews and “I tried it” stories are keeping McDonald’s top-of-mind, which can lift short-term store traffic even if reviews are mixed. Big Arch review
• Negative Sentiment: A viral video of CEO Christopher Kempczinski awkwardly sampling the Big Arch drew widespread mockery and was amplified by Burger King’s leadership — the competitive jab and PR backlash create short-term reputation risk and distract management messaging. CEO roasted by Burger King WSJ coverage
• Negative Sentiment: Some consumer write-ups call the Big Arch overpriced or not worth it, which could limit repeat demand if negative reviews persist — important to monitor early sales data and comps. Value questions on Big Arch

McDonald’s Company Profile

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.