McDonald’s Corp. (NYSE:MCD) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The firm presently has a $132.00 price target on the fast-food giant’s stock. Zacks Investment Research’s price objective points to a potential upside of 10.73% from the stock’s previous close.

According to Zacks, “McDonald’s third-quarter adjusted earnings of $1.62 per share topped the Zacks Consensus Estimate by 9.5% and were up 15.7% year over year on the back of the turnaround plan announced in May 2015. Total revenue of $6.42 billion beat the consensus mark by 2.1% but fell 3% year over year mainly due to currency headwinds. Meanwhile, the company recorded the fifth consecutive quarter of positive global comps growth. Notably, the company is trying to strengthen its position via various sales and digital initiatives like menu innovation, introduction of value meals, reimaging of restaurants, efficient marketing and promotions, improved service, roll-out of self-order kiosks, mobile app and a digital menu. However, higher labor costs, along with currency headwinds, might hurt profits. Further, a soft consumer spending environment in the U.S. restaurant space and macroeconomic concerns in various parts of the world is likely to limit revenue growth.”

MCD has been the topic of a number of other research reports. Deutsche Bank AG lowered their price target on McDonald’s Corp. from $140.00 to $135.00 and set a “buy” rating on the stock in a research report on Wednesday, July 27th. Canaccord Genuity restated a “hold” rating and set a $122.00 price target on shares of McDonald’s Corp. in a research report on Sunday, October 23rd. Goldman Sachs Group Inc. set a $112.00 price target on McDonald’s Corp. and gave the company a “neutral” rating in a research report on Wednesday, July 27th. RBC Capital Markets restated an “outperform” rating and set a $140.00 price target on shares of McDonald’s Corp. in a research report on Thursday, July 28th. Finally, Robert W. Baird restated an “outperform” rating on shares of McDonald’s Corp. in a research report on Thursday, September 8th. Two investment analysts have rated the stock with a sell rating, sixteen have given a hold rating and sixteen have assigned a buy rating to the company. McDonald’s Corp. currently has an average rating of “Hold” and an average target price of $126.47.

Analyst Recommendations for McDonald`s Corp. (NYSE:MCD)

McDonald’s Corp. (NYSE:MCD) opened at 119.21 on Tuesday. The firm has a market capitalization of $99.00 billion, a PE ratio of 22.40 and a beta of 0.63. The firm has a 50-day moving average price of $113.75 and a 200 day moving average price of $119.07. McDonald’s Corp. has a one year low of $110.33 and a one year high of $131.96.

McDonald’s Corp. (NYSE:MCD) last released its quarterly earnings results on Friday, October 21st. The fast-food giant reported $1.62 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.49 by $0.13. McDonald’s Corp. had a return on equity of 197.51% and a net margin of 18.74%. The business had revenue of $6.42 billion for the quarter, compared to the consensus estimate of $6.28 billion. During the same quarter last year, the business posted $1.40 earnings per share. The company’s revenue for the quarter was down 2.9% on a year-over-year basis. Analysts anticipate that McDonald’s Corp. will post $5.69 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Investors of record on Thursday, December 1st will be issued a $0.94 dividend. The ex-dividend date of this dividend is Tuesday, November 29th. This represents a $3.76 annualized dividend and a yield of 3.15%. This is an increase from McDonald’s Corp.’s previous quarterly dividend of $0.89. McDonald’s Corp.’s dividend payout ratio is currently 67.30%.

In related news, VP James R. Sappington sold 8,298 shares of the company’s stock in a transaction on Monday, November 14th. The shares were sold at an average price of $118.08, for a total value of $979,827.84. Following the completion of the transaction, the vice president now owns 14,750 shares of the company’s stock, valued at approximately $1,741,680. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Chairman Andrew J. Mckenna sold 30,000 shares of the company’s stock in a transaction on Monday, October 24th. The stock was sold at an average price of $113.48, for a total transaction of $3,404,400.00. Following the completion of the transaction, the chairman now directly owns 72,514 shares of the company’s stock, valued at approximately $8,228,888.72. The disclosure for this sale can be found here. 0.28% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently modified their holdings of the company. Steinberg Global Asset Management boosted its stake in shares of McDonald’s Corp. by 1.0% in the first quarter. Steinberg Global Asset Management now owns 2,479 shares of the fast-food giant’s stock valued at $312,000 after buying an additional 24 shares during the last quarter. LGL Partners LLC boosted its stake in shares of McDonald’s Corp. by 0.4% in the first quarter. LGL Partners LLC now owns 1,722 shares of the fast-food giant’s stock valued at $216,000 after buying an additional 7 shares during the last quarter. EFG Asset Management Americas Corp. boosted its stake in shares of McDonald’s Corp. by 74.1% in the first quarter. EFG Asset Management Americas Corp. now owns 4,238 shares of the fast-food giant’s stock valued at $552,000 after buying an additional 1,804 shares during the last quarter. Jacobs Levy Equity Management Inc. boosted its stake in shares of McDonald’s Corp. by 441.6% in the first quarter. Jacobs Levy Equity Management Inc. now owns 167,020 shares of the fast-food giant’s stock valued at $20,991,000 after buying an additional 136,180 shares during the last quarter. Finally, National Pension Service boosted its stake in shares of McDonald’s Corp. by 4.2% in the first quarter. National Pension Service now owns 481,054 shares of the fast-food giant’s stock valued at $60,459,000 after buying an additional 19,502 shares during the last quarter. 67.80% of the stock is owned by institutional investors.

About McDonald’s Corp.

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.

5 Day Chart for NYSE:MCD

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