McDonald’s (NYSE:MCD) Hits New 1-Year Low – Time to Sell?

McDonald’s Corporation (NYSE:MCD)’s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $263.65 and last traded at $263.7580, with a volume of 3455401 shares traded. The stock had previously closed at $267.64.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: Several analyst-style articles were more bullish on McDonald’s, with one calling the recent sell-off an opportunity and another upgrading the stock on the view that its consistency deserves a higher valuation. These pieces suggest some investors see room for a rebound if recent growth momentum continues. Article Title
• Positive Sentiment: McDonald’s continues to roll out limited-time menu items, including new breakfast biscuits, a honey brown butter biscuit, a Caesar menu, and a sweet makeover of a classic breakfast sandwich. Product innovation can help drive traffic and support same-store sales. Article Title
• Neutral Sentiment: Media coverage highlighting customer complaints and mixed reactions to new items may remind investors that McDonald’s still faces execution risk around menu innovation and customer satisfaction, but these stories do not appear to be a major fundamental change on their own. Article Title
• Neutral Sentiment: Some recent coverage is largely consumer-interest oriented, including reviews of new sauces and drink items, which may support brand visibility but likely has limited immediate impact on earnings expectations. Article Title
• Negative Sentiment: One article frames McDonald’s as still not attractive enough for some investors, while another says the stock’s recent sell-off and underperformance are creating debate rather than clear conviction. That skepticism can pressure sentiment even after a strong long-term run. Article Title

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Wells Fargo & Company reduced their price target on McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, July 16th. JPMorgan Chase & Co. decreased their price target on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a research note on Monday, May 11th. Tigress Financial lifted their price target on shares of McDonald’s from $385.00 to $390.00 and gave the company a “buy” rating in a research report on Friday. Morgan Stanley dropped their price objective on shares of McDonald’s from $331.00 to $322.00 and set an “equal weight” rating on the stock in a research note on Wednesday, July 15th. Finally, Robert W. Baird set a $305.00 price objective on shares of McDonald’s in a report on Thursday, May 7th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, McDonald’s has a consensus rating of “Moderate Buy” and an average target price of $336.32.

McDonald’s Stock Performance

The company has a market capitalization of $187.40 billion, a PE ratio of 21.74, a P/E/G ratio of 2.78 and a beta of 0.41. The company’s 50-day moving average is $276.94 and its 200 day moving average is $299.99.

McDonald’s (NYSE:MCD) last issued its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. During the same period in the previous year, the company earned $2.67 earnings per share. The business’s revenue for the quarter was up 9.4% compared to the same quarter last year. On average, analysts forecast that McDonald’s Corporation will post 12.86 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. Investors of record on Tuesday, June 2nd were given a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.8%. McDonald’s’s dividend payout ratio is 61.34%.

Insider Buying and Selling at McDonald’s

In other news, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% 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 worth $2,456,440. Company insiders own 0.26% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

Several hedge funds and other institutional investors have recently bought and sold shares of MCD. Your Advocates Ltd. LLP purchased a new stake in McDonald’s in the fourth quarter worth approximately $27,000. Park Place Capital Corp lifted its holdings in shares of McDonald’s by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after buying an additional 45 shares during the period. IFC & Insurance Marketing Inc. bought a new position in shares of McDonald’s during the 4th quarter valued at $29,000. Abound Financial LLC purchased a new position in shares of McDonald’s in the 4th quarter worth $30,000. Finally, DecisionPoint Financial LLC grew its holdings in shares of McDonald’s by 1,616.7% in the fourth 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 period. Institutional investors own 70.29% of the company’s stock.

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.