McDonald’s (NYSE:MCD) Hits New 12-Month Low Following Analyst Downgrade

McDonald’s Corporation (NYSE:MCD) reached a new 52-week low during trading on Thursday after Argus lowered their price target on the stock from $320.00 to $310.00. Argus currently has a buy rating on the stock. McDonald’s traded as low as $260.93 and last traded at $260.5150, with a volume of 3989488 shares trading hands. The stock had previously closed at $266.93.

Other equities analysts have also issued research reports about the stock. TD Cowen restated a “hold” rating on shares of McDonald’s in a research report on Tuesday, August 4th. Sanford C. Bernstein reiterated a “market perform” rating and issued a $295.00 target price on shares of McDonald’s in a report on Wednesday, August 5th. Evercore set a $320.00 price target on shares of McDonald’s in a research note on Thursday, July 23rd. Piper Sandler set a $286.00 price objective on McDonald’s in a research report on Tuesday, August 4th. Finally, Cfra raised shares of McDonald’s to a “buy” rating in a research report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $322.96.

Insider Transactions at McDonald’s

In other McDonald’s news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.26% of the stock is owned by corporate insiders.

Key McDonald’s News

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

• Positive Sentiment: A temporary waiver of tariffs on imported beef could reduce input costs for fast-food operators, potentially supporting McDonald’s margins. ETFs to Gain as Trump Waives Off Tariffs on Beef Imports Temporarily
• Positive Sentiment: McDonald’s is bringing back Spicy Chicken McNuggets on September 1 after a two-year hiatus. The limited-time item could drive traffic, customer engagement and promotional sales, although its financial impact is likely modest. McDonald’s to bring back spicy McNuggets
• Positive Sentiment: Argus reduced its price target from $320 to $310 but maintained a Buy rating, implying substantial potential upside from recent levels. Argus price-target update
• Neutral Sentiment: A comparison with Domino’s highlights McDonald’s growth strategy of global expansion, digital initiatives and customer engagement. These are longer-term opportunities rather than immediate earnings catalysts. McDonald’s vs. Domino’s: Which Stock Has Better Growth Prospects?
• Neutral Sentiment: Robert W. Baird upgraded McDonald’s to Hold, indicating a more balanced view of valuation and near-term prospects. Baird rating update
• Negative Sentiment: The unwinding of takeover speculation around Wendy’s is weighing on quick-service restaurant stocks, including McDonald’s, as investors remove a deal-related premium from the sector. Wendy’s Sinks as Trian Shelves Its Take-Private Bid
• Negative Sentiment: Commentary linking McDonald’s with Kohl’s and Walmart points to weakening consumer conditions and pressure on discretionary spending, raising concerns about traffic and comparable sales. The Kohl’s Recession
• Negative Sentiment: Argus’s price-target reduction reflects more cautious expectations even though its Buy rating remains intact.

Institutional Trading of McDonald’s

Large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its position in McDonald’s by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock valued at $2,692,000 after purchasing an additional 1,649 shares during the period. Revolve Wealth Partners LLC lifted its holdings in McDonald’s by 2.8% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant’s stock valued at $563,000 after purchasing an additional 52 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in shares of McDonald’s by 11.4% in the second quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock worth $589,000 after buying an additional 206 shares in the last quarter. United Bank lifted its stake in McDonald’s by 6.0% in the 2nd quarter. United Bank now owns 8,102 shares of the fast-food giant’s stock worth $2,367,000 after purchasing an additional 459 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its stake in McDonald’s by 2.5% during the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock worth $3,780,000 after buying an additional 312 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s Stock Down 2.4%

The company’s 50-day moving average is $271.33 and its 200-day moving average is $292.38. The stock has a market capitalization of $184.37 billion, a price-to-earnings ratio of 21.16, a PEG ratio of 3.00 and a beta of 0.41.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. During the same quarter last year, the firm earned $3.19 EPS. The business’s revenue was up 3.7% compared to the same quarter last year. Sell-side analysts anticipate that McDonald’s Corporation will post 12.88 EPS for the current year.

McDonald’s Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s payout ratio is 60.44%.

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.