BTIG Research Issues Pessimistic Forecast for McDonald’s (NYSE:MCD) Stock Price

McDonald’s (NYSE:MCD) had its price target reduced by equities research analysts at BTIG Research from $370.00 to $350.00 in a note issued to investors on Friday, Marketbeat reports. The brokerage currently has a “buy” rating on the fast-food giant’s stock. BTIG Research’s price target would indicate a potential upside of 32.35% from the company’s previous close.

A number of other research firms also recently commented on MCD. Barclays lowered their target price on McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. JPMorgan Chase & Co. reduced their price target on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of McDonald’s in a research note on Tuesday, June 23rd. Weiss Ratings lowered shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Finally, Sanford C. Bernstein reiterated a “market perform” rating on shares of McDonald’s in a research report on Monday, June 22nd. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $334.32.

McDonald’s Trading Up 0.6%

Shares of MCD stock opened at $264.46 on Friday. The stock has a market capitalization of $187.90 billion, a price-to-earnings ratio of 21.80, a price-to-earnings-growth ratio of 2.84 and a beta of 0.41. McDonald’s has a 12-month low of $260.96 and a 12-month high of $341.75. The stock’s 50-day moving average price is $275.99 and its 200-day moving average price is $298.87.

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 analysts’ consensus estimates of $2.74 by $0.09. The company 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 firm’s revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the company earned $2.67 earnings per share. As a group, research analysts predict that McDonald’s will post 12.86 EPS for the current fiscal year.

Insider Activity at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’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 transaction, the executive vice president owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’s 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 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 SEC filing for this sale provides additional information. In the last three months, insiders have sold 8,348 shares of company stock worth $2,355,634. Corporate insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

Several institutional investors have recently made changes to their positions in MCD. Your Advocates Ltd. LLP purchased a new position in shares of McDonald’s during the fourth quarter valued at approximately $27,000. IFC & Insurance Marketing Inc. purchased a new stake in shares of McDonald’s in the fourth quarter worth approximately $29,000. Abound Financial LLC purchased a new stake in shares of McDonald’s in the fourth quarter worth approximately $30,000. Purpose Unlimited Inc. bought a new stake in shares of McDonald’s during the 4th quarter worth approximately $31,000. Finally, DecisionPoint Financial LLC lifted its stake in shares of McDonald’s by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock worth $31,000 after acquiring an additional 97 shares during the last quarter. Institutional investors own 70.29% of the company’s stock.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s announced a quarterly dividend of $1.86 per share, reinforcing its reputation as a steady income stock and highlighting continued cash generation. McDONALD’S ANNOUNCES QUARTERLY CASH DIVIDEND
• Positive Sentiment: BTIG Research kept a buy rating on McDonald’s and said the stock still offers meaningful upside, even after cutting its price target to $350 from $370. Benzinga
• Positive Sentiment: Recent consumer-focused coverage around McValue packs, online availability, and a new dipping sauce suggests McDonald’s is still leaning on value-driven promotions and menu innovation to drive traffic. Here’s what’s new at McDonald’s this week
• Neutral Sentiment: Media coverage highlighting McDonald’s new McValue packs and online ordering is more promotional than financial, so it may help awareness but does not yet prove a material sales lift. McDonald’s McValue packs now available online. Here’s how to score one
• Neutral Sentiment: Analysts and media continue to frame McDonald’s as a defensive dividend name, but that alone is not enough to offset broader concerns about consumer spending. These 4 Dividend Stocks Are Money-Printing Machines
• Negative Sentiment: New research indicates restaurant customers remain highly price sensitive despite lower gas prices, which is a warning sign for traffic and margins at McDonald’s. McDonald’s (MCD) Faces Stubborn Price Sensitive Traffic Despite Lower Gas Prices
• Negative Sentiment: McDonald’s recently hit a new 52-week low, and commentary around the stock suggests investors are waiting for the August 4 earnings report before buying the dip. McDonald’s Just Hit a New 52-Week Low. Don’t Buy the Dip Until After August 4.
• Negative Sentiment: StockTwits-style coverage also points to McDonald’s trading near 52-week lows amid broader concerns about weakening consumer demand. Why Did PEGA, ISRG, MCD Stocks Plunge To 52-Week Lows Today?

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.