McDonald’s (NYSE:MCD) Stock Jumps 2.9% – Time to Buy?

McDonald’s Corporation (NYSE:MCD) rose 2.9% on Monday. The stock traded as high as $265.67 and last traded at $265.5430. Approximately 6,447,981 shares changed hands during trading, an increase of 50% from the average daily volume of 4,302,200 shares. The stock had previously closed at $258.12.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: Expansion of McDonald’s beverage offerings and continued international growth could support third-quarter sales and provide potential catalysts ahead of the earnings release. McDonald’s Stock Ahead of Q3 Earnings: Buy, Sell or Wait for Now?

Analyst Ratings Changes

Several brokerages have issued reports on MCD. Gordon Haskett dropped their price objective on shares of McDonald’s from $315.00 to $285.00 and set a “buy” rating on the stock in a research note on Thursday, September 24th. Daiwa Securities Group lowered their target price on shares of McDonald’s from $309.00 to $293.00 and set an “outperform” rating on the stock in a report on Thursday, August 6th. Piper Sandler set a $286.00 price target on McDonald’s in a report on Tuesday, August 4th. HC Wainwright set a $250.00 price target on McDonald’s in a report on Friday, September 25th. Finally, Tigress Financial upped their price objective on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $294.73.

McDonald’s Price Performance

The firm has a market cap of $187.91 billion, a PE ratio of 21.57, a PEG ratio of 2.95 and a beta of 0.42. The business has a 50-day moving average price of $248.26 and a two-hundred day moving average price of $283.44.

McDonald’s (NYSE:MCD) last posted 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 firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate 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 for the quarter was up 3.7% on a year-over-year basis. During the same period last year, the firm posted $3.19 EPS. Equities analysts expect that McDonald’s Corporation will post 12.83 earnings per share for the current fiscal year.

McDonald’s Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a $1.93 dividend. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Tuesday, December 1st. McDonald’s’s dividend payout ratio (DPR) is currently 60.44%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. GKV Capital Management Co. Inc. purchased a new position in shares of McDonald’s during the first quarter valued at approximately $33,000. Burkett Financial Services LLC increased its holdings in shares of McDonald’s by 2,312.5% during the 3rd quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock worth $45,000 after buying an additional 185 shares during the last quarter. POM Investment Strategies LLC raised its holdings in shares of McDonald’s by 46.2% in the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after purchasing an additional 55 shares during the period. Westfuller Advisors LLC lifted its position in McDonald’s by 140.0% during the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock valued at $49,000 after buying an additional 105 shares in the last quarter. Finally, Mountain Hill Investment Partners Corp. lifted its holdings in shares of McDonald’s by 777.8% during the 3rd quarter. Mountain Hill Investment Partners Corp. now owns 237 shares of the fast-food giant’s stock valued at $55,000 after acquiring an additional 210 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

McDonald’s Company Profile

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.