McDonald’s (NYSE:MCD) Releases Earnings Results, Misses Estimates By $0.11 EPS

McDonald’s (NYSE:MCD) posted its quarterly earnings data on Wednesday. The fast-food giant reported $3.22 EPS for the quarter, missing analysts’ consensus estimates of $3.33 by ($0.11), Zacks reports. McDonald’s had a negative return on equity of 225.52% and a net margin of 32.21%.The business had revenue of $7.08 billion for the quarter, compared to analyst estimates of $7.10 billion. During the same quarter in the prior year, the company earned $3.23 earnings per share. The company’s quarterly revenue was up 3.0% on a year-over-year basis.

McDonald’s Stock Performance

MCD traded down $1.41 during midday trading on Thursday, reaching $304.26. The company had a trading volume of 955,551 shares, compared to its average volume of 3,441,204. The stock has a market cap of $217.12 billion, a PE ratio of 26.10, a P/E/G ratio of 3.23 and a beta of 0.50. McDonald’s has a 12-month low of $276.53 and a 12-month high of $326.32. The business has a 50-day moving average price of $304.94 and a two-hundred day moving average price of $305.25.

McDonald’s Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Monday, December 1st will be paid a $1.86 dividend. The ex-dividend date is Monday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.77. This represents a $7.44 dividend on an annualized basis and a yield of 2.4%. McDonald’s’s dividend payout ratio is presently 63.75%.

Insider Transactions at McDonald’s

In other McDonald’s news, EVP Jonathan Banner sold 1,000 shares of the business’s stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total value of $310,000.00. Following the transaction, the executive vice president directly owned 99 shares in the company, valued at $30,690. The trade was a 90.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CMO Edith Morgan Flatley sold 1,000 shares of the business’s stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $315.00, for a total transaction of $315,000.00. Following the completion of the transaction, the chief marketing officer owned 6,858 shares in the company, valued at approximately $2,160,270. The trade was a 12.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.25% of the stock is owned by insiders.

Institutional Trading of McDonald’s

Institutional investors have recently modified their holdings of the business. Semmax Financial Advisors Inc. lifted its stake in shares of McDonald’s by 30.2% during the 2nd quarter. Semmax Financial Advisors Inc. now owns 250 shares of the fast-food giant’s stock valued at $76,000 after buying an additional 58 shares in the last quarter. Osterweis Capital Management Inc. lifted its stake in shares of McDonald’s by 8,040.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 407 shares of the fast-food giant’s stock valued at $119,000 after buying an additional 402 shares in the last quarter. WFA of San Diego LLC purchased a new stake in shares of McDonald’s during the 2nd quarter valued at approximately $128,000. Darwin Wealth Management LLC purchased a new stake in shares of McDonald’s during the 2nd quarter valued at approximately $163,000. Finally, Shay Capital LLC purchased a new stake in shares of McDonald’s during the 2nd quarter valued at approximately $292,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

MCD has been the subject of several recent analyst reports. Citigroup cut their target price on shares of McDonald’s from $381.00 to $375.00 and set a “buy” rating for the company in a research note on Tuesday, October 21st. Wells Fargo & Company raised their target price on shares of McDonald’s from $340.00 to $345.00 and gave the stock an “overweight” rating in a report on Thursday. BMO Capital Markets raised their target price on shares of McDonald’s from $350.00 to $360.00 and gave the stock an “outperform” rating in a report on Thursday, September 4th. The Goldman Sachs Group raised shares of McDonald’s from a “neutral” rating to a “buy” rating and set a $345.00 price objective on the stock in a research note on Thursday, July 10th. Finally, Guggenheim decreased their price objective on shares of McDonald’s from $310.00 to $295.00 and set a “neutral” rating on the stock in a research note on Friday, October 10th. Eleven research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, McDonald’s presently has an average rating of “Hold” and an average price target of $323.48.

About McDonald’s

McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.