McDonald’s (NYSE:MCD – Get Free Report) had its price objective upped by equities research analysts at Wells Fargo & Company from $270.00 to $300.00 in a research note issued to investors on Thursday, Benzinga reports. The firm presently has an “overweight” rating on the fast-food giant’s stock. Wells Fargo & Company‘s target price points to a potential upside of 7.07% from the company’s current price.
A number of other brokerages have also weighed in on MCD. Guggenheim decreased their target price on McDonald’s from $290.00 to $250.00 and set a “neutral” rating for the company in a research report on Monday, October 5th. Morgan Stanley dropped their price target on shares of McDonald’s from $308.00 to $297.00 and set an “equal weight” rating on the stock in a report on Monday, September 28th. Mizuho cut their target price on shares of McDonald’s from $290.00 to $260.00 and set a “neutral” rating for the company in a research report on Friday, October 30th. Jefferies Financial Group lowered their target price on McDonald’s from $260.00 to $250.00 and set an “overweight” rating on the stock in a report on Tuesday, September 29th. Finally, Piper Sandler set a $286.00 price target on McDonald’s in a research note on Tuesday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $294.42.
Read Our Latest Stock Report on MCD
McDonald’s Price Performance
MCD stock opened at $280.20 on Thursday. McDonald’s has a 1-year low of $229.20 and a 1-year high of $341.75. The business has a fifty day moving average price of $248.20 and a 200-day moving average price of $282.85. The stock has a market capitalization of $198.28 billion, a P/E ratio of 22.76, a P/E/G ratio of 3.01 and a beta of 0.42.
McDonald’s (NYSE:MCD – Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.38 by $0.19. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. The firm had revenue of $7.16 billion for the quarter, compared to the consensus estimate of $7.28 billion. During the same period in the prior year, the company posted $3.22 earnings per share. The company’s quarterly revenue was up 1.1% on a year-over-year basis. As a group, analysts anticipate that McDonald’s will post 12.82 earnings per share for the current year.
Institutional Trading of McDonald’s
Several hedge funds have recently made changes to their positions in MCD. Cassia Capital Partners LLC raised its position in McDonald’s by 10.7% in the 3rd quarter. Cassia Capital Partners LLC now owns 5,077 shares of the fast-food giant’s stock worth $1,173,000 after purchasing an additional 492 shares during the period. Gables Capital Management Inc. boosted its position in shares of McDonald’s by 18.9% during the third quarter. Gables Capital Management Inc. now owns 16,111 shares of the fast-food giant’s stock valued at $3,721,000 after buying an additional 2,560 shares during the period. Marathon Wealth Advisors LLC boosted its position in shares of McDonald’s by 0.6% during the third quarter. Marathon Wealth Advisors LLC now owns 10,571 shares of the fast-food giant’s stock valued at $2,441,000 after buying an additional 61 shares during the period. Gen Wealth Partners Inc boosted its position in shares of McDonald’s by 5.0% during the third quarter. Gen Wealth Partners Inc now owns 7,848 shares of the fast-food giant’s stock valued at $1,812,000 after buying an additional 374 shares during the period. Finally, Kinsale Capital Group Inc. grew its stake in shares of McDonald’s by 2.4% during the third quarter. Kinsale Capital Group Inc. now owns 43,309 shares of the fast-food giant’s stock valued at $10,002,000 after buying an additional 1,025 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.
Key Headlines Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: Adjusted Q3 earnings were $3.57 per share, ahead of the roughly $3.38 analyst consensus and up from $3.22 a year earlier. Stronger franchised margins and international performance helped offset U.S. softness. McDonald’s Q3 Earnings Beat on Franchised Margins, Revenues Miss
- Positive Sentiment: Management said U.S. sales improved as the quarter progressed, with value promotions helping draw diners back. Investors are looking to these efforts to support a recovery in traffic. McDonald’s says US sales on the mend as promotions draw diners back
- Positive Sentiment: The company plans additional value bundles and is testing affordable offers at U.S. restaurants, aiming to attract budget-conscious customers. McDonald’s also raised its dividend for the 50th consecutive year. Why McDonald’s Stock Popped Today
- Neutral Sentiment: New value bundles could help restore traffic, but their effectiveness will depend on execution and franchisee participation; the company has reported tensions with some franchisees over promotions and pricing. McDonald’s says US sales are improving amid tensions with franchisees
- Negative Sentiment: Revenue was $7.16 billion, below the roughly $7.28 billion consensus, while U.S. comparable sales fell 0.2%—the first decline in six quarters—amid pressured consumer spending and weaker traffic. McDonald’s US sales decline for first time in six quarters despite value push
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.
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