HSBC Initiates Coverage on McDonald’s (NYSE:MCD)

Equities research analysts at HSBC assumed coverage on shares of McDonald’s (NYSE:MCD) in a research note issued on Thursday, Zacks reports. The firm set a “strong-buy” rating on the fast-food giant’s stock.

MCD has been the subject of several other reports. HC Wainwright set a $250.00 target price on shares of McDonald’s in a research note on Friday, September 25th. Evercore dropped their price target on shares of McDonald’s from $320.00 to $300.00 and set an “outperform” rating on the stock in a research report on Thursday, September 24th. Freedom Capital raised shares of McDonald’s from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 5th. Freedom Broker lowered shares of McDonald’s from a “buy” rating to a “hold” rating and lowered their price objective for the stock from $305.00 to $298.00 in a research note on Thursday. Finally, TD Cowen upped their target price on shares of McDonald’s from $270.00 to $285.00 and gave the company a “hold” rating in a report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, McDonald’s presently has a consensus rating of “Moderate Buy” and an average target price of $297.82.

McDonald’s Trading Down 0.6%

Shares of NYSE MCD traded down $1.68 during midday trading on Thursday, reaching $276.36. The company’s stock had a trading volume of 6,331,310 shares, compared to its average volume of 5,495,061. McDonald’s has a fifty-two week low of $229.20 and a fifty-two week high of $341.75. The stock has a market capitalization of $195.56 billion, a price-to-earnings ratio of 21.86, a PEG ratio of 3.03 and a beta of 0.42. The stock has a 50 day simple moving average of $248.76 and a 200-day simple moving average of $282.57.

McDonald’s (NYSE:MCD) last announced its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 EPS for the quarter, topping the consensus estimate of $3.38 by $0.19. The business had revenue of $7.16 billion during the quarter, compared to analysts’ expectations of $7.28 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The firm’s revenue was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.22 earnings per share. As a group, equities analysts anticipate that McDonald’s will post 12.84 EPS for the current year.

Hedge Funds Weigh In On McDonald’s

Several institutional investors and hedge funds have recently modified their holdings of the stock. GKV Capital Management Co. Inc. bought a new position in McDonald’s in the 1st quarter valued at about $33,000. Valued Wealth Advisors LLC boosted its holdings in shares of McDonald’s by 121.1% during the third quarter. Valued Wealth Advisors LLC now owns 168 shares of the fast-food giant’s stock worth $39,000 after acquiring an additional 92 shares during the period. POM Investment Strategies LLC boosted its holdings in shares of McDonald’s by 46.2% during the second quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after acquiring an additional 55 shares during the period. Westfuller Advisors LLC grew its position in shares of McDonald’s by 140.0% in the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock valued at $49,000 after purchasing an additional 105 shares during the last quarter. Finally, Burkett Financial Services LLC grew its position in shares of McDonald’s by 2,312.5% in the third quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock valued at $45,000 after purchasing an additional 185 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

More McDonald’s News

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

• Positive Sentiment: Argus raised its price target to $320 from $310 and reiterated a “buy” rating, signaling confidence in the stock’s prospects. Argus rating
• Neutral Sentiment: McDonald’s is testing value bundles at nearly 2,000 U.S. restaurants, ahead of a planned national value platform in early 2027. The deals may help bring back customers, but the company is still assessing their effect on traffic and orders. McDonald’s value-bundle test
• Neutral Sentiment: Third-quarter profit beat analyst estimates, but revenue missed and U.S. comparable sales declined. That mixed backdrop helps explain why investors are watching for evidence that value promotions can sustain a domestic recovery. Q3 earnings and U.S. traffic
• Negative Sentiment: Consumers have filed a lawsuit alleging McDonald’s labeled McCafé drinks “sugar free” despite some containing as much as 18 grams of sugar. The allegations are unproven, but the case could create legal and reputational risk. McCafé labeling lawsuit
• Negative Sentiment: Freedom Broker cut its rating from “buy” to “hold” and lowered its price target to $298 from $305, adding a more cautious view alongside the recent analyst optimism. Freedom Broker rating change

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.