McDonald’s (NYSE:MCD) Stock Gets Price Target Cut from Sanford C. Bernstein

McDonald’s (NYSE:MCD) had its target price decreased by Sanford C. Bernstein from $295.00 to $250.00 in a research note released on Thursday morning, MarketBeat Ratings reports. Sanford C. Bernstein currently has a market perform rating on the fast-food giant’s stock.

A number of other analysts have also recently commented on MCD. Royal Bank Of Canada cut their price target on shares of McDonald’s from $290.00 to $285.00 and set a “sector perform” rating for the company in a research note on Thursday, September 24th. TD Cowen lowered their price objective on shares of McDonald’s from $282.00 to $270.00 and set a “hold” rating on the stock in a research note on Thursday, September 24th. Jefferies Financial Group dropped their target price on shares of McDonald’s from $260.00 to $250.00 and set an “overweight” rating on the stock in a report on Tuesday, September 29th. Loop Capital cut their target price on shares of McDonald’s from $301.00 to $273.00 and set a “hold” rating for the company in a research note on Wednesday, August 5th. Finally, Citigroup reduced their price target on McDonald’s from $310.00 to $305.00 and set a “buy” rating for the company in a report on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $295.94.

McDonald’s Stock Down 0.6%

Shares of McDonald’s stock opened at $235.42 on Thursday. The stock has a market cap of $166.59 billion, a P/E ratio of 19.12, a P/E/G ratio of 2.63 and a beta of 0.44. McDonald’s has a 12-month low of $229.20 and a 12-month high of $341.75. The business’s 50 day moving average is $255.31 and its 200-day moving average is $274.52.

McDonald’s (NYSE:MCD) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The firm’s revenue was up 3.7% on a year-over-year basis. During the same period last year, the business earned $3.19 earnings per share. On average, sell-side analysts expect that McDonald’s will post 12.85 EPS for the current year.

McDonald’s Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a $1.93 dividend. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Tuesday, December 1st. McDonald’s’s dividend payout ratio is presently 60.44%.

Institutional Trading of McDonald’s

A number of hedge funds have recently modified their holdings of the stock. Gilpin Wealth Management LLC bought a new position in shares of McDonald’s in the third quarter valued at approximately $115,000. Jacobs & Co. CA grew its holdings in McDonald’s by 2.5% during the third quarter. Jacobs & Co. CA now owns 44,303 shares of the fast-food giant’s stock worth $10,231,000 after buying an additional 1,076 shares in the last quarter. Valley Wealth Managers Inc. raised its position in McDonald’s by 4.6% in the 3rd quarter. Valley Wealth Managers Inc. now owns 14,489 shares of the fast-food giant’s stock valued at $3,346,000 after buying an additional 636 shares during the last quarter. Stokes Capital Advisors LLC raised its position in McDonald’s by 2.4% in the 3rd quarter. Stokes Capital Advisors LLC now owns 39,001 shares of the fast-food giant’s stock valued at $9,007,000 after buying an additional 906 shares during the last quarter. Finally, GK Wealth Management LLC bought a new position in McDonald’s during the 3rd quarter valued at $88,000. Institutional investors and hedge funds own 70.29% of the company’s stock.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s continues to attract income-oriented investors. Its dividend increase, approximately 3.7% yield and strong franchise-driven cash flow make MCD relatively appealing as bond yields rise and investors seek growing dividend payers. What Is McDonald’s Signaling With Its Faster Dividend And New US Chief?
• Positive Sentiment: Analysts and some investment publications view McDonald’s as undervalued because of its high-margin, heavily franchised business model, attractive cash generation and compressed valuation. The company’s new U.S. leadership and menu initiatives could help improve domestic performance. McDonald’s Is Wall Street Overlooking Its High-Margin Franchise Model?
• Positive Sentiment: McDonald’s is testing AI ordering and spending $8.5 billion on its “Next” remodel program to improve speed, restaurant appeal and operating efficiency. Management also says a newer U.S. menu item is outperforming its internal expectations, offering potential growth if the momentum scales. Where Could McDonald’s Next Growth Come From?
• Neutral Sentiment: The company is defending itself against allegations that its AI-supported pricing tools coordinate prices among franchisees. McDonald’s says the lawsuit contains inaccuracies and that AI does not set menu prices, but the legal outcome and potential regulatory scrutiny remain uncertain. McDonald’s Accused of AI-Fueled Price Fixing
• Negative Sentiment: The AI-pricing class action creates potential legal costs, reputational damage and additional questions about corporate control over franchisees. The controversy could also undermine customer trust in McDonald’s use of personalized or dynamic pricing. McDonald’s Sued Over Alleged AI-Powered Menu Price-Fixing
• Negative Sentiment: Franchisees are reportedly pushing back against the expensive remodel initiative, increasing execution risk and potentially pressuring returns on invested capital. At the same time, discounts such as $5 meals and $6 combos have not clearly restored customer traffic, while consumer complaints about smaller portions and higher prices persist. $5 Meals, $6 Combos and Fewer Visits
• Negative Sentiment: Sanford C. Bernstein lowered its price target from $295 to $250 and kept a “market perform” rating, reflecting concerns about slowing growth, weak U.S. execution and leverage. Rising Treasury yields may further pressure highly indebted companies such as McDonald’s.

About McDonald’s

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.