McDonald’s (NYSE:MCD) Given New $390.00 Price Target at Tigress Financial

McDonald’s (NYSE:MCD) had its target price lifted by Tigress Financial from $385.00 to $390.00 in a report issued on Friday morning,Benzinga reports. The brokerage currently has a buy rating on the fast-food giant’s stock.

Several other analysts also recently weighed in on the stock. Rothschild & Co Redburn upgraded 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 report on Thursday, April 23rd. Morgan Stanley decreased their price objective on McDonald’s from $331.00 to $322.00 and set an “equal weight” rating for the company in a research report on Wednesday. Wells Fargo & Company lowered their target price on McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday. Cfra raised McDonald’s to a “buy” rating in a report on Friday, May 8th. Finally, BTIG Research restated a “buy” rating and issued a $370.00 price target on shares of McDonald’s in a research note on Thursday, May 7th. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $336.32.

McDonald’s Stock Performance

McDonald’s stock opened at $267.74 on Friday. McDonald’s has a fifty-two week low of $264.09 and a fifty-two week high of $341.75. The company has a market cap of $190.23 billion, a PE ratio of 22.07, a PEG ratio of 2.84 and a beta of 0.41. The business’s 50-day simple moving average is $277.07 and its two-hundred day simple moving average is $300.33.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The company had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. During the same quarter in the prior year, the firm posted $2.67 EPS. McDonald’s’s quarterly revenue was up 9.4% compared to the same quarter last year. As a group, analysts predict that McDonald’s will post 12.88 EPS for the current fiscal year.

McDonald’s Dividend Announcement

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

Insider Activity at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’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 transaction, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction on 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 of the company’s stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 8,681 shares of company stock valued at $2,456,440. Insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

Large investors have recently bought and sold shares of the business. Butensky & Cohen Financial Security Inc. lifted its holdings in shares of McDonald’s by 2.5% during the 2nd quarter. Butensky & Cohen Financial Security Inc. now owns 19,429 shares of the fast-food giant’s stock valued at $5,252,000 after purchasing an additional 483 shares in the last quarter. Hudson Value Partners LLC increased its stake in McDonald’s by 22.1% during the 2nd quarter. Hudson Value Partners LLC now owns 15,790 shares of the fast-food giant’s stock worth $4,268,000 after purchasing an additional 2,862 shares in the last quarter. Whitener Capital Management Inc. grew its holdings in shares of McDonald’s by 1.9% during the second quarter. Whitener Capital Management Inc. now owns 33,453 shares of the fast-food giant’s stock worth $9,043,000 after buying an additional 635 shares in the last quarter. Tema ETFs LLC raised its position in McDonald’s by 10.7% in the 2nd quarter. Tema ETFs LLC now owns 14,939 shares of the fast-food giant’s stock valued at $4,038,000 after buying an additional 1,450 shares during the last quarter. Finally, GenWealth Group Inc. acquired a new stake in McDonald’s in the 2nd quarter valued at approximately $203,000. 70.29% of the stock is currently owned by institutional investors.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: Tigress Financial raised its price target on McDonald’s to $390 from $385 and reiterated a buy rating, signaling confidence that the stock has meaningful upside from current levels.
• Positive Sentiment: Analyst coverage and commentary continue to highlight McDonald’s value offerings, loyalty efforts, localized marketing, and menu innovation as ways the company can support customer traffic and defend sales trends.
• Neutral Sentiment: McDonald’s is expected to report second-quarter earnings next month, with consensus calling for modest single-digit profit growth, keeping investor focus on whether traffic and margins improve.
• Neutral Sentiment: Recent product news, including the new Caesar sauce and other menu rollouts, is generating consumer interest, but the items appear more promotional than clearly material to near-term earnings.
• Negative Sentiment: Articles questioning why McDonald’s stock is at nearly two-year lows and noting a 10.1% decline over the past six months versus a rising S&P 500 suggest investors are worried about relative underperformance and slowing momentum.
• Negative Sentiment: Commentary describing a “McProblem” that is not getting better points to continuing concerns about business execution, customer traffic, or overall sentiment toward the stock.
• Negative Sentiment: One recent piece also urged investors to stay skeptical, indicating that while the stock may look attractive to some value investors, there are still fundamental questions weighing on shares.

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.