McDonald’s (NYSE:MCD – Get Free Report)‘s stock had its “buy” rating restated by equities research analysts at BTIG Research in a report issued on Monday, Benzinga reports. They currently have a $295.00 price objective on the fast-food giant’s stock. BTIG Research‘s price objective points to a potential upside of 17.99% from the stock’s current price.
Several other research analysts also recently commented on the company. Weiss Ratings downgraded McDonald’s from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, October 2nd. Argus dropped their price target on McDonald’s from $320.00 to $310.00 and set a “buy” rating on the stock in a research note on Wednesday, August 26th. Gordon Haskett cut their price target on McDonald’s from $315.00 to $285.00 and set a “buy” rating for the company in a report on Thursday, September 24th. Guggenheim reduced their price objective on shares of McDonald’s from $290.00 to $250.00 and set a “neutral” rating for the company in a research report on Monday, October 5th. Finally, Bank of America upped their price objective on shares of McDonald’s from $339.00 to $343.00 in a report on Wednesday, August 5th. One research 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 assigned a Sell rating to the company’s stock. According to MarketBeat, McDonald’s currently has an average rating of “Moderate Buy” and an average price target of $295.64.
McDonald’s Stock Performance
NYSE MCD traded up $1.57 during trading hours on Monday, reaching $250.03. 1,105,601 shares of the company’s stock were exchanged, compared to its average volume of 4,268,188. The company has a market capitalization of $176.93 billion, a price-to-earnings ratio of 20.30, a price-to-earnings-growth ratio of 2.83 and a beta of 0.44. The company’s 50-day moving average is $249.43 and its two-hundred day moving average is $269.68. McDonald’s has a one year low of $229.20 and a one year high of $341.75.
McDonald’s (NYSE:MCD – Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 business had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. During the same period last year, the company earned $3.19 earnings per share. McDonald’s’s quarterly revenue was up 3.7% on a year-over-year basis. Research analysts predict that McDonald’s will post 12.84 earnings per share for the current fiscal year.
Hedge Funds Weigh In On McDonald’s
Several large investors have recently bought and sold shares of MCD. Ascentis Wealth Management LLC grew its position in McDonald’s by 4,008.8% during the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock worth $22,768,000 after buying an additional 82,180 shares in the last quarter. Ridgewood Investments LLC bought a new stake in shares of McDonald’s during the 3rd quarter valued at about $1,026,000. Borer Denton & Associates Inc. boosted its position in shares of McDonald’s by 16.9% during the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock valued at $3,746,000 after acquiring an additional 2,000 shares during the last quarter. HighTower Advisors LLC grew its holdings in shares of McDonald’s by 7.1% during the second quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock worth $397,822,000 after purchasing an additional 97,060 shares in the last quarter. Finally, Viking Fund Management LLC increased its position in shares of McDonald’s by 60.0% in the third quarter. Viking Fund Management LLC now owns 40,000 shares of the fast-food giant’s stock worth $9,238,000 after purchasing an additional 15,000 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.
McDonald’s News Summary
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: BTIG reaffirms Buy rating: BTIG Research maintained its “buy” recommendation and set a $295 price target, implying meaningful upside from McDonald’s recent trading level. The endorsement may be supporting the stock by reinforcing confidence in the company’s long-term earnings and franchise model. BTIG Research stock recommendations
- Positive Sentiment: McRib promotion returns: McDonald’s is bringing back the McRib in select U.S. cities this week. The limited-time offering could increase restaurant traffic, customer engagement, and sales, although its financial impact is likely to be modest relative to the company’s overall revenue. McDonald’s McRib returns this week
- Neutral Sentiment: Marketing strategy shifts: McDonald’s reportedly ended its 32-year FIFA World Cup sponsorship while emphasizing internally owned intellectual property. The move could reduce major sponsorship costs and give the company more control over marketing, but it also removes a globally recognized promotional platform. McDonald’s ends FIFA World Cup sponsorship
- Negative Sentiment: Traffic remains a concern: McDonald’s is investing approximately $8.5 billion in its “NEXT” strategy, while management reportedly expects customer traffic to remain flat. Revenue growth and pricing may continue to support results, but limited traffic growth could constrain comparable-sales momentum. McDonald’s bets $8.5 billion on NEXT
- Negative Sentiment: Estimate and income concerns: Erste Group Bank lowered its fiscal 2027 EPS estimates. Separate coverage also highlights that McDonald’s dividend yield may be less attractive than current Treasury-bill yields, potentially limiting demand from income-focused investors. FY2027 EPS estimates for McDonald’s cut
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.
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