McDonald’s (NYSE:MCD – Get Free Report) had its price objective decreased by equities researchers at Robert W. Baird from $285.00 to $250.00 in a research note issued on Thursday, MarketBeat Ratings reports. The brokerage currently has a “neutral” rating on the fast-food giant’s stock. Robert W. Baird’s price objective would suggest a potential upside of 4.46% from the stock’s current price.
MCD has been the subject of several other reports. Freedom Capital raised shares of McDonald’s from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 5th. Mizuho cut their price objective on McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a research report on Friday, July 31st. Evercore restated an “outperform” rating and issued a $300.00 price objective (down from $320.00) on shares of McDonald’s in a report on Thursday. BMO Capital Markets cut their price target on shares of McDonald’s from $335.00 to $310.00 and set an “outperform” rating on the stock in a report on Thursday. Finally, Citigroup lowered their price target on McDonald’s from $345.00 to $310.00 and set a “buy” rating on the stock in a report on Thursday, September 17th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $302.50.
Check Out Our Latest Analysis on MCD
McDonald’s Trading Up 0.4%
McDonald’s (NYSE:MCD – Get Free Report) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The company had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. During the same period in the previous year, the company posted $3.19 EPS. The firm’s revenue for the quarter was up 3.7% compared to the same quarter last year. On average, research analysts forecast that McDonald’s will post 12.88 EPS for the current year.
Institutional Trading of McDonald’s
Several institutional investors have recently made changes to their positions in the company. Ascentis Wealth Management LLC grew its position in shares of McDonald’s by 4,008.8% during the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock worth $22,768,000 after acquiring an additional 82,180 shares during the last quarter. Borer Denton & Associates Inc. boosted its position in shares of McDonald’s by 16.9% in the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock worth $3,746,000 after buying an additional 2,000 shares in the last quarter. Peterson Wealth Services raised its position in McDonald’s by 3,294.5% during the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock worth $3,600,000 after acquiring an additional 11,432 shares during the last quarter. HighTower Advisors LLC raised its position in shares of McDonald’s by 7.1% during the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock worth $397,822,000 after purchasing an additional 97,060 shares during the last quarter. Finally, Capital International Sarl increased its position in McDonald’s by 10.4% during the fourth quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock worth $19,639,000 after buying an additional 6,079 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.
Key McDonald’s News
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: McDonald’s announced its NEXT strategy, which includes restaurant modernization, AI-enabled ordering and operations, employee training, expanded chicken and protein offerings, and support for franchisees. Management is targeting improved productivity and operating margins potentially exceeding 50% by 2030. McDonald’s NEXT strategy and margin outlook
- Positive Sentiment: Analysts remain constructive despite reducing their estimates: Oppenheimer cut its price target to $295 while maintaining an “outperform” rating, JPMorgan lowered its target to $260 with an “overweight” rating, and BTIG set a $295 target with a “buy” rating. Analyst views on McDonald’s
- Positive Sentiment: McDonald’s increased its dividend by nearly 4%, supporting the stock’s appeal to income-focused investors. Unusually heavy call-option activity also suggests some traders are positioning for a rebound, although options activity is not a guarantee of future performance. McDonald’s dividend increase
- Neutral Sentiment: The company plans to spend approximately $8.5 billion through 2036—about $5 billion by 2030—to provide rent relief and capital support to franchisees, refresh restaurants, upgrade technology, and improve service. The investment could strengthen long-term sales but weighs on near-term cash flow and returns. McDonald’s franchisee support plan
- Negative Sentiment: Investors were discouraged by management’s cautious outlook for persistent inflation and flat traffic, particularly among lower-income customers. The large spending commitment, slower expected growth, and several analyst target reductions intensified concerns about execution and profitability. McDonald’s inflation and traffic outlook
- Negative Sentiment: Shares have fallen sharply and are on track for a prolonged losing streak as investors question whether chicken innovation, protein-focused menu items, GLP-1-friendly offerings, and a new advertising business can offset weak consumer demand soon. McDonald’s chicken and AI strategy
McDonald’s Company Profile
McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.
The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.
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