Morgan Stanley Cuts McDonald’s (NYSE:MCD) Price Target to $319.00

McDonald’s (NYSE:MCD) had its target price lowered by Morgan Stanley from $322.00 to $319.00 in a research note issued to investors on Wednesday, Marketbeat reports. Morgan Stanley currently has an equal weight rating on the fast-food giant’s stock.

Other equities analysts have also recently issued reports about the stock. Cfra upgraded shares of McDonald’s to a “buy” rating in a research report on Friday, May 8th. Robert W. Baird set a $305.00 target price on McDonald’s in a report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft boosted their price objective on McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a research report on Wednesday. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of McDonald’s in a report on Monday, June 22nd. Finally, Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and lifted their target price for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $325.44.

McDonald’s Trading Down 0.7%

MCD opened at $274.39 on Wednesday. The company has a market capitalization of $194.96 billion, a price-to-earnings ratio of 22.29, a PEG ratio of 3.01 and a beta of 0.41. The business’s fifty day simple moving average is $274.03 and its 200-day simple moving average is $296.42. McDonald’s has a 12-month low of $260.96 and a 12-month high of $341.75.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a negative return on equity of 512.80% and a net margin of 31.72%.The company had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. During the same period last year, the business posted $3.19 earnings per share. The firm’s revenue was up 3.7% compared to the same quarter last year. On average, equities research analysts predict that McDonald’s will post 12.87 EPS for the current year.

McDonald’s Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be given a $1.86 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. McDonald’s’s dividend payout ratio (DPR) is currently 60.44%.

Insider Buying and Selling at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 8,348 shares of company stock valued at $2,355,634 over the last three months. Corporate insiders own 0.26% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Your Advocates Ltd. LLP purchased a new stake in shares of McDonald’s in the fourth quarter worth approximately $27,000. IFC & Insurance Marketing Inc. purchased a new position in McDonald’s during the fourth quarter valued at approximately $29,000. Abound Financial LLC purchased a new position in McDonald’s during the fourth quarter valued at approximately $30,000. Purpose Unlimited Inc. acquired a new position in McDonald’s in the 4th quarter valued at approximately $31,000. Finally, DecisionPoint Financial LLC increased its stake in McDonald’s by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock valued at $31,000 after buying an additional 97 shares during the period. 70.29% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: Freedom Capital upgraded McDonald’s (MCD) from “hold” to “strong-buy,” while BTIG reiterated its “buy” rating. These calls suggest some analysts view the recent selloff as excessive and expect a recovery. McDonald’s analyst upgrade
• Positive Sentiment: McDonald’s remains attractive to income-focused investors because of its long record of dividend payments. Its latest quarterly earnings also exceeded consensus expectations, and global markets continue to provide support. McDonald’s dividend history
• Neutral Sentiment: Forecast coverage is mixed. Morgan Stanley lowered its price target to $319, while RBC and Robert W. Baird issued pessimistic outlooks; a separate forecast highlighted potential upside from McDonald’s loyalty scale and the faster-than-expected rollout of its beverage platform. Morgan Stanley lowers McDonald’s price target
• Negative Sentiment: The main issue is weak U.S. performance. Management acknowledged an execution problem involving the value menu, digital offers, restaurant workload, and marketing—not a flawed overall strategy. Customers continue to demand better value, raising concerns about traffic and near-term sales growth. McDonald’s Q2 earnings call
• Negative Sentiment: Competitive pressure is increasing, with Burger King reporting stronger U.S. sales momentum as McDonald’s growth falters. Wendy’s weak traffic and withdrawn outlook add to broader investor concern about value-oriented fast-food demand. Burger King gains against McDonald’s
• Negative Sentiment: McDonald’s has pushed back its goal of reaching 50,000 restaurants, suggesting that economic conditions are slowing expansion. The end of its Krispy Kreme doughnut partnership also removes a recent menu-growth initiative. McDonald’s expansion plans

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.