McDonald’s Corp. (MCD) Stock Rating Lowered by Zacks Investment Research
McDonald’s Corp. (NYSE:MCD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “McDonald’s has turned itself around in the domestic market, mainly driven by its successful all-day Breakfast platform. The company is further trying to strengthen its position in the U.S. through various sales initiatives like menu innovation, introduction of value meals, efficient marketing and promotions, and improved service. Backed by these efforts, in the second-quarter 2016, McDonald’s posted positive comps for the fourth consecutive quarter in the region. The company enjoys moderate growth prospects through its exposure in the under-penetrated international markets. Moreover, the company has positive record of earnings surprises in recent quarters. Estimates too have been mostly going up ahead of McDonald’s third quarter earnings release. However, soft industry growth, macroeconomic concerns in various parts of the world along with negative currency translation remain potent headwinds.”
A number of other research firms also recently issued reports on MCD. Jefferies Group restated a “hold” rating on shares of McDonald’s Corp. in a report on Friday, August 5th. Credit Suisse Group AG decreased their price objective on shares of McDonald’s Corp. from $135.00 to $130.00 and set an “outperform” rating for the company in a report on Monday, June 27th. Deutsche Bank AG restated a “buy” rating on shares of McDonald’s Corp. in a report on Wednesday, August 10th. Vetr upgraded shares of McDonald’s Corp. from a “hold” rating to a “buy” rating and set a $121.01 target price for the company in a research note on Wednesday, September 28th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $140.00 target price on shares of McDonald’s Corp. in a research note on Wednesday, July 27th. Two equities research analysts have rated the stock with a sell rating, nineteen have issued a hold rating and thirteen have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average target price of $125.85.
Shares of McDonald’s Corp. (NYSE:MCD) traded down 0.90% during mid-day trading on Tuesday, hitting $113.61. 2,844,731 shares of the stock were exchanged. McDonald’s Corp. has a 52 week low of $100.34 and a 52 week high of $131.96. The stock’s 50-day moving average is $115.93 and its 200-day moving average is $121.97. The stock has a market capitalization of $96.95 billion, a price-to-earnings ratio of 21.69 and a beta of 0.61.
McDonald’s Corp. (NYSE:MCD) last posted its quarterly earnings data on Tuesday, July 26th. The fast-food giant reported $1.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.39 by $0.06. McDonald’s Corp. had a net margin of 18.73% and a return on equity of 97.56%. The business earned $6.27 billion during the quarter, compared to the consensus estimate of $6.28 billion. During the same quarter last year, the company posted $1.26 earnings per share. The firm’s quarterly revenue was down 3.6% compared to the same quarter last year. Analysts forecast that McDonald’s Corp. will post $5.56 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Stockholders of record on Thursday, December 1st will be given a $0.94 dividend. The ex-dividend date is Tuesday, November 29th. This is an increase from McDonald’s Corp.’s previous quarterly dividend of $0.89. This represents a $3.76 dividend on an annualized basis and a dividend yield of 3.28%. McDonald’s Corp.’s dividend payout ratio is currently 68.59%.
In other news, Chairman Andrew J. Mckenna sold 70,000 shares of the company’s stock in a transaction dated Thursday, August 4th. The shares were sold at an average price of $118.28, for a total value of $8,279,600.00. Following the sale, the chairman now directly owns 108,841 shares of the company’s stock, valued at approximately $12,873,713.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.28% of the stock is currently owned by insiders.
Several hedge funds have recently added to or reduced their stakes in MCD. Janus Capital Management LLC increased its stake in McDonald’s Corp. by 49.3% in the second quarter. Janus Capital Management LLC now owns 4,192,114 shares of the fast-food giant’s stock worth $504,479,000 after buying an additional 1,383,391 shares in the last quarter. Emerald Acquisition Ltd. purchased a new position in shares of McDonald’s Corp. during the second quarter worth about $158,428,000. Societe Generale purchased a new position in shares of McDonald’s Corp. during the second quarter worth about $151,614,000. BlackRock Fund Advisors boosted its position in shares of McDonald’s Corp. by 4.1% in the second quarter. BlackRock Fund Advisors now owns 16,763,162 shares of the fast-food giant’s stock worth $2,017,279,000 after buying an additional 655,395 shares during the last quarter. Finally, Renaissance Technologies LLC purchased a new position in shares of McDonald’s Corp. during the first quarter worth about $76,602,000. 69.10% of the stock is currently owned by hedge funds and other institutional investors.
McDonald’s Corp. Company Profile
McDonald’s Corporation (McDonald’s) operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally-relevant menu of quality food and drinks sold at various price points in over 100 countries. The Company’s segments include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate.
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