McDonald’s (NYSE:MCD) Price Target Cut to $335.00 by Analysts at Citigroup

McDonald’s (NYSE:MCD) had its target price cut by Citigroup from $375.00 to $335.00 in a research note issued to investors on Wednesday morning,Benzinga reports. They currently have a buy rating on the fast-food giant’s stock.

A number of other analysts also recently issued reports on the stock. Sanford C. Bernstein restated a “market perform” rating on shares of McDonald’s in a report on Monday, June 22nd. Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and increased their target price for the company from $260.00 to $306.00 in a research report on Thursday, April 23rd. Morgan Stanley set a $322.00 price target on shares of McDonald’s in a research note on Wednesday. JPMorgan Chase & Co. lowered their price target on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a report on Monday, May 11th. Finally, TD Cowen reaffirmed a “hold” rating on shares of McDonald’s in a report on Friday, June 12th. Fifteen investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. According to data from MarketBeat, McDonald’s currently has a consensus rating of “Moderate Buy” and a consensus price target of $336.35.

McDonald’s Trading Down 1.5%

MCD stock opened at $264.88 on Wednesday. The stock has a market cap of $188.20 billion, a P/E ratio of 21.84, a P/E/G ratio of 2.79 and a beta of 0.41. The stock’s fifty day simple moving average is $277.44 and its two-hundred day simple moving average is $300.82. McDonald’s has a 1-year low of $264.09 and a 1-year high of $341.75.

McDonald’s (NYSE:MCD) last announced its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.74 by $0.09. The firm had revenue of $6.52 billion during 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 was up 9.4% compared to the same quarter last year. During the same period last year, the firm posted $2.67 EPS. As a group, analysts forecast that McDonald’s will post 12.9 earnings per share for the current fiscal year.

McDonald’s Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were paid a $1.86 dividend. The ex-dividend date was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.8%. McDonald’s’s dividend payout ratio is currently 61.34%.

Insider Buying and Selling at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents 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 8,681 shares of company stock valued at $2,456,440. Insiders own 0.26% of the company’s stock.

Institutional Trading of McDonald’s

Hedge funds have recently made changes to their positions in the stock. Hamilton Point Investment Advisors LLC raised its position in McDonald’s by 1.8% in the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock valued at $535,000 after purchasing an additional 31 shares during the last quarter. Encompass More Asset Management increased its position in McDonald’s by 1.5% in the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock valued at $648,000 after acquiring an additional 32 shares during the period. Richmond Investment Services LLC raised its stake in shares of McDonald’s by 1.4% during the fourth quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock valued at $696,000 after acquiring an additional 32 shares during the last quarter. Papamarkou Wellner Asset Management inc. raised its stake in shares of McDonald’s by 0.4% during the fourth quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant’s stock valued at $2,692,000 after acquiring an additional 32 shares during the last quarter. Finally, Physician Wealth Advisors Inc. lifted its holdings in shares of McDonald’s by 1.6% during the fourth quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock worth $642,000 after purchasing an additional 33 shares during the period. 70.29% of the stock is owned by institutional investors.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s is rolling out several limited-time menu items, including new chicken products and a Caesar sauce, which could boost customer traffic and add to sales momentum. McDonald’s Is Releasing 4 New Menu Items for a Limited Time
• Positive Sentiment: The new Caesar sauce and related chicken sandwich/snack wrap offerings signal continued menu innovation, which investors may view as a way to defend market share in a mixed restaurant environment. McDonald’s upcoming Caesar sauce brings a new sandwich and snack wrap to the summer menu
• Positive Sentiment: The BT21 Happy Meal promotion adds a collectible, marketing-driven sales event that could attract families and drive near-term visits. How Long Will the BT21 Happy Meal Be Available at McDonald’s?
• Neutral Sentiment: Some coverage focuses on the new PlayPlace design and toy promotions, which are good for brand buzz but are unlikely to materially change fundamentals on their own. People Are Talking About McDonald’s New “See-Through” PlayPlace Design
• Neutral Sentiment: Analyst and valuation-related articles suggest MCD may look attractive on a long-term basis, but they do not appear to be major catalysts by themselves. MCD at $268, Starbucks at $106: Buy, Sell or Hold?
• Negative Sentiment: Citigroup trimmed its price target on McDonald’s, which may temper enthusiasm even though it kept a buy rating. Benzinga report on Citigroup price target cut

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.