McDonald’s (NYSE:MCD) Stock Breaks Above 50 Day Moving Average – Here’s What Happened

McDonald’s Corporation (NYSE:MCD) crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $249.77 and traded as high as $252.88. McDonald’s shares last traded at $250.9320, with a volume of 4,736,264 shares.

Key McDonald’s News

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

• Positive Sentiment: BTIG reaffirmed its “Buy” rating and set a $295 price target, implying substantial potential upside from recent trading levels. The endorsement supports the view that McDonald’s valuation and earnings outlook remain attractive. BTIG rating report
• Positive Sentiment: The McRib has returned in select U.S. markets for a limited time. The highly recognizable product could increase restaurant traffic, digital engagement and promotional sales, although the geographically limited rollout reduces its companywide financial impact. USA Today McRib article
• Positive Sentiment: Ending McDonald’s more than 30-year FIFA World Cup sponsorship may reduce marketing costs and allow the company to redirect spending toward owned brands and promotions. The potential savings must be balanced against the loss of global visibility. NRN sponsorship article
• Neutral Sentiment: Recent commentary describes McDonald’s as an attractive, potentially underpriced restaurant stock, but this is an opinion rather than a new company disclosure. Seeking Alpha valuation analysis
• Negative Sentiment: Franchisees reportedly cited tough meat and other quality problems with McDonald’s new hand-breaded chicken. Execution issues could slow adoption of a key growth initiative, pressure franchisee economics and hurt customer satisfaction. MarketWatch chicken article
• Negative Sentiment: Erste Group Bank lowered its fiscal 2027 EPS estimates for McDonald’s. Estimate reductions can weigh on valuation and suggest analysts see potential pressure on sales, margins or growth expectations. EPS estimate article

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Piper Sandler set a $286.00 price target on McDonald’s in a research note on Tuesday, August 4th. BMO Capital Markets dropped their price objective on McDonald’s from $335.00 to $310.00 and set an “outperform” rating for the company in a research report on Thursday, September 24th. Gordon Haskett reduced their price objective on McDonald’s from $315.00 to $285.00 and set a “buy” rating on the stock in a research note on Thursday, September 24th. Oppenheimer decreased their target price on McDonald’s from $325.00 to $295.00 and set an “outperform” rating on the stock in a research report on Thursday, September 24th. Finally, KeyCorp lowered their target price on McDonald’s from $305.00 to $280.00 and set an “overweight” rating for the company in a research note on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, McDonald’s has an average rating of “Moderate Buy” and an average target price of $295.64.

McDonald’s Price Performance

The stock has a market capitalization of $177.57 billion, a P/E ratio of 20.38, a P/E/G ratio of 2.83 and a beta of 0.44. The firm has a 50-day simple moving average of $249.77 and a 200 day simple moving average of $284.75.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share 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 for the quarter, compared to analysts’ expectations of $7.13 billion. During the same period in the previous year, the business posted $3.19 earnings per share. The business’s quarterly revenue was up 3.7% compared to the same quarter last year. Sell-side analysts anticipate that McDonald’s Corporation will post 12.84 earnings per share for the current fiscal year.

McDonald’s Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a dividend of $1.93 per share. This represents a $7.72 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend is Tuesday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s payout ratio is presently 60.44%.

Hedge Funds Weigh In On McDonald’s

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp lifted its holdings in shares of McDonald’s by 1.8% during the second quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant’s stock worth $9,752,921,000 after purchasing an additional 646,675 shares during the period. Bank of New York Mellon Corp acquired a new stake in McDonald’s in the second quarter valued at $1,359,276,000. Arrowstreet Capital Limited Partnership raised its position in McDonald’s by 17.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant’s stock worth $1,130,587,000 after purchasing an additional 533,448 shares during the last quarter. Swiss National Bank raised its position in McDonald’s by 6.9% during the 1st quarter. Swiss National Bank now owns 2,089,980 shares of the fast-food giant’s stock worth $649,545,000 after purchasing an additional 134,480 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in McDonald’s by 3.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,909,321 shares of the fast-food giant’s stock worth $593,366,000 after purchasing an additional 62,562 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

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.