McDonald’s Corporation (NYSE:MCD – Get Free Report)’s stock price hit a new 52-week low on Tuesday . The stock traded as low as $283.02 and last traded at $284.6980, with a volume of 641118 shares traded. The stock had previously closed at $284.10.
Key Stories Impacting McDonald’s
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: Analysts say value promotions, digital sales and pricing could lift Q1 revenue and help MCD beat expectations — a key near-term catalyst ahead of May 7 earnings. Will These 3 Restaurant Stocks Report Strong Q1 Results?
- Positive Sentiment: UBS and other outlets highlight menu and marketing changes (including loyalty and digital) as potential catalysts that could drive a bounce if execution convinces investors. McDonald’s likely to bounce as fast-food chain overhauls menus, marketing, UBS says
- Positive Sentiment: McDonald’s is rolling out six specialty drinks and refreshing its beverage lineup — a higher-margin category that could boost average check and traffic if consumer uptake is strong. McDonald’s is shaking up your soda run
- Neutral Sentiment: Policy tailwind for franchising: commentary on the American Franchise Act suggests regulatory support for the franchise model, a long-term positive for McDonald’s franchised footprint but not an immediate earnings driver. This One Federal Standard Is the ‘Lynchpin’ of Franchising — And Congress Could Make It Permanent
- Neutral Sentiment: Valuation and product notes: coverage highlights the specialty-drinks push and restaurant changes while noting recent softening in the share price — useful context for investors weighing entry points versus long-term positioning. A Look At McDonald’s (MCD) Valuation As New Specialty Drinks And Restaurant Changes Gain Attention
- Negative Sentiment: UBS warned U.S. same-store sales may miss consensus, which would weigh on sentiment and could pressure guidance if confirmed in the Q1 report. McDonald’s Could Miss First-Quarter US Comparable Sales Consensus Views, UBS Says
- Negative Sentiment: Shares have slid to 52-week lows ahead of earnings, reflecting investor caution after gains earlier this year — increased volatility could amplify post-earnings moves. McDonald’s Stock Hits 52-Week Low Ahead of Earnings
- Negative Sentiment: Erste Group downgraded MCD to Hold, citing below-sector profit growth expectations and a sideways medium-term outlook — an analyst headwind that can weigh on sentiment. Erste Group Turns Cautious on McDonald’s (MCD), Downgrades to Hold
Analysts Set New Price Targets
Several equities analysts recently weighed in on MCD shares. JPMorgan Chase & Co. increased their price target on shares of McDonald’s from $305.00 to $325.00 and gave the stock an “overweight” rating in a report on Tuesday, February 24th. Argus upgraded shares of McDonald’s from a “hold” rating to a “buy” rating and set a $380.00 price target on the stock in a report on Friday, February 13th. BTIG Research reiterated a “buy” rating and issued a $370.00 price target on shares of McDonald’s in a report on Tuesday, April 28th. Morgan Stanley cut their price target on shares of McDonald’s from $335.00 to $334.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 21st. Finally, Jefferies Financial Group increased their price target on shares of McDonald’s from $360.00 to $375.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Sixteen analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, McDonald’s has an average rating of “Hold” and a consensus price target of $340.93.
McDonald’s Trading Up 0.5%
The company has a 50-day simple moving average of $314.29 and a 200 day simple moving average of $311.86. The firm has a market cap of $203.01 billion, a PE ratio of 23.91, a price-to-earnings-growth ratio of 2.65 and a beta of 0.43.
McDonald’s (NYSE:MCD – Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, topping the consensus estimate of $3.05 by $0.07. McDonald’s had a negative return on equity of 343.90% and a net margin of 31.85%.The business had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.81 billion. During the same quarter in the prior year, the firm posted $2.83 EPS. The business’s quarterly revenue was up 9.7% compared to the same quarter last year. On average, equities analysts expect that McDonald’s Corporation will post 13.2 earnings per share for the current year.
McDonald’s Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 17th. Shareholders of record on Tuesday, March 3rd were given a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.6%. The ex-dividend date was Tuesday, March 3rd. McDonald’s’s dividend payout ratio is currently 62.26%.
Insiders Place Their Bets
In other news, CEO Christopher J. Kempczinski sold 26,277 shares of the stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $331.35, for a total transaction of $8,706,883.95. Following the transaction, the chief executive officer owned 22,900 shares in the company, valued at $7,587,915. This trade represents a 53.43% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Jonathan Banner sold 6,201 shares of the stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total value of $2,066,731.29. Following the transaction, the executive vice president owned 2,291 shares in the company, valued at $763,567.39. This trade represents a 73.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 71,990 shares of company stock worth $23,824,113. Corporate insiders own 0.26% of the company’s stock.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently made changes to their positions in MCD. Norges Bank purchased a new position in shares of McDonald’s during the 4th quarter valued at approximately $2,890,438,000. Diamant Asset Management Inc. lifted its position in shares of McDonald’s by 30,979.0% during the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock valued at $806,917,000 after buying an additional 2,587,986 shares in the last quarter. J. Stern & Co. LLP lifted its position in shares of McDonald’s by 9,867.5% during the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after buying an additional 2,515,515 shares in the last quarter. Viking Global Investors LP lifted its position in shares of McDonald’s by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock valued at $913,157,000 after buying an additional 1,974,998 shares in the last quarter. Finally, Franklin Resources Inc. lifted its holdings in McDonald’s by 36.6% in the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant’s stock valued at $1,336,155,000 after purchasing an additional 1,179,244 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.
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.
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