McDonald’s Corporation (NYSE:MCD) Given Consensus Rating of “Moderate Buy” by Analysts

McDonald’s Corporation (NYSE:MCD) has received a consensus recommendation of “Moderate Buy” from the thirty analysts that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, thirteen have assigned a hold recommendation and sixteen have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $336.2593.

MCD has been the topic of several analyst reports. Wells Fargo & Company cut their target price on McDonald’s from $355.00 to $320.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. Barclays decreased their price target on McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. KeyCorp decreased their price target on McDonald’s from $345.00 to $330.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. TD Cowen decreased their price target on McDonald’s from $330.00 to $300.00 and set a “hold” rating for the company in a research note on Thursday, May 7th. Finally, Sanford C. Bernstein reissued a “market perform” rating and set a $340.00 price target on shares of McDonald’s in a research note on Thursday, February 12th.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s is piloting AI ordering systems at select U.S. drive-thrus, a move that could reduce labor friction and improve throughput if adoption goes well. McDonald’s pilots AI system at select US drive-thru locations
• Positive Sentiment: The company’s FIFA World Cup meal promotions, collectible cups, toys, and other limited-time items could support customer traffic and sales momentum. McDonald’s just announced special World Cup meals only available for a limited time
• Positive Sentiment: Analysts and commentators continue to frame McDonald’s as a resilient long-term holding, citing its franchise model, dividends, and defensive qualities. McDonald’s stock could be bottoming, creating a contrarian bet for long-term investors
• Neutral Sentiment: Several articles focused on McDonald’s new strategic direction and beverage innovation, highlighting possible growth opportunities but without a clear near-term earnings impact. McDonald’s outlines new strategic course
• Negative Sentiment: Fresh workplace-incident reports and culture concerns may create some investor caution around operational oversight and brand reputation. McDonald’s Workplace Incidents Put Culture Risks And Investor Focus In Spotlight

McDonald’s Stock Performance

NYSE MCD opened at $282.08 on Wednesday. The company has a market cap of $200.42 billion, a P/E ratio of 23.25, a P/E/G ratio of 2.77 and a beta of 0.41. The business’s 50 day moving average price is $290.86 and its 200-day moving average price is $307.22. McDonald’s has a fifty-two week low of $271.85 and a fifty-two week high of $341.75.

McDonald’s (NYSE:MCD) last released its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate of $2.74 by $0.09. The firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The company’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.67 EPS. As a group, equities analysts predict that McDonald’s will post 12.93 EPS for the current year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be paid a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Tuesday, June 2nd. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Joseph M. Erlinger sold 333 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $280.11, for a total value of $93,276.63. Following the sale, the insider directly owned 7,734 shares of the company’s stock, valued at $2,166,370.74. This represents a 4.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 6,055 shares of company stock valued at $1,769,373 over the last three months. 0.26% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On McDonald’s

A number of institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank bought a new stake in McDonald’s during the 4th quarter valued at $2,890,438,000. Diamant Asset Management Inc. raised its position in McDonald’s by 30,979.0% during the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock valued at $806,917,000 after purchasing an additional 2,587,986 shares in the last quarter. J. Stern & Co. LLP raised its position in McDonald’s by 9,867.5% during the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after purchasing an additional 2,515,515 shares in the last quarter. Viking Global Investors LP raised its position in McDonald’s by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock valued at $913,157,000 after purchasing an additional 1,974,998 shares in the last quarter. Finally, Franklin Resources Inc. raised its position in McDonald’s by 36.6% during the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant’s stock valued at $1,336,155,000 after purchasing an additional 1,179,244 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

About McDonald’s

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.