McDonald’s Corporation (NYSE:MCD) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of McDonald’s Corporation (NYSE:MCD) have been assigned a consensus rating of “Moderate Buy” from the thirty ratings firms that are currently covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell rating, thirteen have given a hold rating and sixteen have assigned a buy rating to the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $335.7037.

Several research analysts have issued reports on the stock. KeyCorp dropped their target price on shares of McDonald’s from $330.00 to $315.00 and set an “overweight” rating on the stock in a report on Monday, June 29th. Morgan Stanley set a $331.00 price target on shares of McDonald’s in a research report on Friday, May 8th. Cfra upgraded shares of McDonald’s to a “buy” rating in a research note on Friday, May 8th. Erste Group Bank lowered shares of McDonald’s from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Finally, Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and boosted their price objective for the stock from $260.00 to $306.00 in a research note on Thursday, April 23rd.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s stock was lifted by a UBS note highlighting it as an attractive defensive dividend name, helping support the shares as investors rotate toward stable cash-generating companies. Why McDonald’s (MCD) Stock Is Up Today
• Positive Sentiment: McDonald’s continues to appeal to income investors after its latest quarterly dividend, reinforcing its reputation as one of the most reliable dividend payers in the Dow. Despite Franchisees Struggling, McDonald’s Dividend Keeps Rising
• Positive Sentiment: New menu and promotional chatter, including Happy Meal tie-ins, free fries offers, and added chicken items, could help drive customer engagement and traffic. BT21 Toys Teases Coming To McDonald’s Happy Meals On July 14
• Neutral Sentiment: McDonald’s is also getting broader media attention around its brand history and restaurant expansion plans, but these items are not likely to move the stock much on their own. The McDonald’s Big Mac jingle from the mid ’70s that still lives in our heads
• Neutral Sentiment: McDonald’s hired a new development executive to support its NEXT strategy, which signals execution progress but is still more of a long-term operating update than an immediate stock catalyst. McDonald’s taps Raising Cane’s vet to lead development
• Negative Sentiment: A Trefis report said McDonald’s is facing a real risk from trying to win over budget-conscious customers, with franchisee strain from inflation and weak consumer sentiment weighing on the system. The Real Risk Squeezing McDonald’s Stock
• Negative Sentiment: Another recent analysis said MCD is near 52-week lows because of margin pressure at franchisees and softer foot traffic, which continues to limit enthusiasm despite the dividend appeal. Should You Buy McDonald’s (MCD) At 52-Week Lows

Insider Buying and Selling at McDonald’s

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction 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 in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 11,307 shares of company stock valued at $3,262,622. Corporate insiders own 0.26% of the company’s stock.

Institutional Trading of McDonald’s

Institutional investors have recently modified their holdings of the company. Norges Bank acquired a new position in shares of McDonald’s during the fourth quarter worth $2,890,438,000. Diamant Asset Management Inc. lifted its holdings in shares of 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 during the last quarter. J. Stern & Co. LLP boosted its position in shares of McDonald’s by 9,867.5% in the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock worth $776,608,000 after purchasing an additional 2,515,515 shares in the last quarter. Viking Global Investors LP boosted its position in shares of McDonald’s by 171.7% in the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock worth $913,157,000 after purchasing an additional 1,974,998 shares in the last quarter. Finally, Franklin Resources Inc. grew its stake 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 worth $1,336,155,000 after buying an additional 1,179,244 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

McDonald’s Trading Down 0.1%

Shares of MCD stock opened at $280.48 on Friday. McDonald’s has a twelve month low of $264.53 and a twelve month high of $341.75. The stock has a fifty day simple moving average of $280.25 and a two-hundred day simple moving average of $303.22. The stock has a market capitalization of $199.29 billion, a price-to-earnings ratio of 23.12, a P/E/G ratio of 2.80 and a beta of 0.41.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS 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 analyst estimates of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The business’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter last year, the firm posted $2.67 earnings per share. Research analysts predict that McDonald’s will post 12.93 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were issued a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.7%. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.

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.