McDonald’s (NYSE:MCD) Sets New 52-Week Low – Here’s Why

McDonald’s Corporation (NYSE:MCD) reached a new 52-week low during trading on Monday. The stock traded as low as $229.20 and last traded at $230.5330, with a volume of 1047216 shares changing hands. The stock had previously closed at $231.89.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s launched its 2026 Monopoly promotion with a $1 million top prize, vehicles, vacations, free food and digital rewards. The campaign could increase customer visits and sales during the important fall promotional period. McDonald’s Monopoly 2026 game launches with $1 million prize
• Positive Sentiment: KeyCorp maintained an “overweight” rating while lowering its price target from $305 to $280, implying substantial potential upside from recent trading levels. The target cut nevertheless reflects more cautious assumptions. McDonald’s Given New $280 Price Target at KeyCorp
• Neutral Sentiment: McDonald’s denied allegations that artificial intelligence sets menu prices, saying franchisees independently determine pricing. The response may limit reputational damage, but the issue remains unresolved. MCD Stock’s Rough Year Gets Worse
• Negative Sentiment: Franchisees are reportedly resisting approximately $800,000 per restaurant in remodeling costs tied to McDonald’s new business initiative. Pushback could slow store upgrades, increase franchisee strain and complicate execution. McDonald’s franchisees push back on remodeling costs
• Negative Sentiment: A proposed class-action lawsuit alleges McDonald’s used an algorithm to coordinate menu prices across restaurants. Although the company disputes the claim, potential litigation, regulatory scrutiny and reputational damage add risk. McDonald’s hit with lawsuit alleging AI-powered menu price-fixing
• Negative Sentiment: Analysts have reduced forecasts and price targets amid weak U.S. sales, softer traffic and intensifying value competition from other quick-service restaurants. Investors remain unconvinced that the U.S. turnaround will happen quickly. McDonald’s Stock Nears 52-Week Low

Wall Street Analyst Weigh In

Several analysts recently issued reports on MCD shares. DZ Bank reissued a “buy” rating on shares of McDonald’s in a research report on Thursday, September 24th. Jefferies Financial Group dropped their price objective on shares of McDonald’s from $260.00 to $250.00 and set an “overweight” rating on the stock in a research note on Tuesday, September 29th. UBS Group set a $260.00 price objective on shares of McDonald’s in a report on Thursday, September 24th. Evercore decreased their target price on shares of McDonald’s from $320.00 to $300.00 and set an “outperform” rating for the company in a research report on Thursday, September 24th. Finally, Freedom Capital upgraded shares of McDonald’s from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, McDonald’s currently has a consensus rating of “Moderate Buy” and an average target price of $297.76.

McDonald’s Trading Down 0.2%

The company’s 50-day simple moving average is $257.47 and its 200 day simple moving average is $275.87. The stock has a market cap of $164.66 billion, a P/E ratio of 18.90, a PEG ratio of 2.60 and a beta of 0.44.

McDonald’s (NYSE:MCD) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.McDonald’s’s quarterly revenue was up 3.7% on a year-over-year basis. During the same period in the prior year, the company posted $3.19 earnings per share. Research analysts anticipate that McDonald’s Corporation will post 12.85 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. Stockholders of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Tuesday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.

Hedge Funds Weigh In On McDonald’s

Institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp bought a new stake in McDonald’s in the 2nd quarter valued at about $1,359,276,000. Diamant Asset Management Inc. boosted its position in McDonald’s by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after purchasing an additional 2,587,986 shares during the period. J. Stern & Co. LLP increased its stake in shares of McDonald’s by 9,867.5% in the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock worth $776,608,000 after purchasing an additional 2,515,515 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of McDonald’s by 49.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant’s stock worth $948,779,000 after purchasing an additional 1,033,041 shares in the last quarter. Finally, State Street Corp raised its position in shares of McDonald’s by 2.7% in the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after purchasing an additional 959,140 shares during the period. Institutional investors own 70.29% of the company’s stock.

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.