McDonald’s (NYSE:MCD) Upgraded to Buy at Argus

Argus upgraded shares of McDonald’s (NYSE:MCD) from a hold rating to a buy rating in a research note released on Friday, MarketBeat reports. They currently have $380.00 price objective on the fast-food giant’s stock.

MCD has been the topic of several other research reports. Sanford C. Bernstein reissued a “market perform” rating and issued a $340.00 price target on shares of McDonald’s in a research report on Thursday. BTIG Research lifted their price objective on McDonald’s from $360.00 to $370.00 and gave the company a “buy” rating in a research note on Thursday. Oppenheimer upgraded McDonald’s from a “market perform” rating to an “outperform” rating and set a $355.00 target price on the stock in a research note on Tuesday, January 6th. Truist Financial lifted their price target on McDonald’s from $356.00 to $370.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Guggenheim decreased their price objective on shares of McDonald’s from $325.00 to $320.00 and set a “neutral” rating on the stock in a research report on Friday. Fifteen research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, McDonald’s presently has a consensus rating of “Hold” and a consensus target price of $337.04.

McDonald’s Price Performance

MCD opened at $327.58 on Friday. McDonald’s has a 1 year low of $283.47 and a 1 year high of $335.67. The company has a market capitalization of $233.29 billion, a price-to-earnings ratio of 27.41, a P/E/G ratio of 3.35 and a beta of 0.52. The firm’s fifty day moving average price is $313.02 and its two-hundred day moving average price is $308.26.

McDonald’s (NYSE:MCD) last released its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.05 by $0.07. The company had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.81 billion. McDonald’s had a negative return on equity of 343.90% and a net margin of 31.85%.McDonald’s’s quarterly revenue was up 9.7% on a year-over-year basis. During the same period in the prior year, the company posted $2.83 earnings per share. As a group, equities analysts anticipate that McDonald’s will post 12.25 EPS for the current year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd will be issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Tuesday, March 3rd. McDonald’s’s payout ratio is currently 63.48%.

Insiders Place Their Bets

In related news, EVP Manuel Jm Steijaert sold 6,567 shares of the business’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $305.50, for a total transaction of $2,006,218.50. Following the transaction, the executive vice president owned 4,606 shares in the company, valued at $1,407,133. The trade was a 58.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,486 shares of the company’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $320.00, for a total transaction of $795,520.00. Following the completion of the sale, the executive vice president owned 6,268 shares in the company, valued at approximately $2,005,760. This trade represents a 28.40% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 31,439 shares of company stock valued at $9,772,464 over the last three months. 0.25% of the stock is currently owned by corporate insiders.

Institutional Trading of McDonald’s

A number of institutional investors and hedge funds have recently bought and sold shares of MCD. Decker Retirement Planning Inc. grew its position in shares of McDonald’s by 142.9% during the second quarter. Decker Retirement Planning Inc. now owns 85 shares of the fast-food giant’s stock worth $25,000 after purchasing an additional 50 shares in the last quarter. Legacy Investment Solutions LLC bought a new stake in shares of McDonald’s during the second quarter valued at approximately $25,000. Evergreen Private Wealth LLC lifted its holdings in shares of McDonald’s by 162.5% in the third quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant’s stock worth $26,000 after buying an additional 52 shares in the last quarter. Your Advocates Ltd. LLP bought a new position in shares of McDonald’s during the fourth quarter worth $27,000. Finally, Park Place Capital Corp grew its stake in McDonald’s by 95.7% during the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after acquiring an additional 45 shares in 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: Q4 beat and momentum — McDonald’s reported stronger-than-expected Q4 results (revenue ~ $7.0B, EPS beat, systemwide comps up ~5.7% with U.S. comps ~6.8%) and cited loyalty growth that helped drive sales and margins; this is the primary bullish catalyst supporting the stock. Q4 Earnings Beat
• Positive Sentiment: Analyst upgrades and higher targets — Several firms raised ratings/targets (Argus upgraded to Buy with a $380 target; Truist/BTIG raised targets toward ~$370), which can support further upside as sentiment shifts. Analyst Upgrades
• Positive Sentiment: Buyback/dividend tailwind — Coverage notes that strong cash flow from Q4 and a healthy dividend yield support continued buybacks and payouts, a structural catalyst for EPS per-share gains over time. Buybacks & Dividends
• Neutral Sentiment: Promotions/brand buzz — Seasonal items and PR stunts (Shamrock Shake, McNugget kits) are driving traffic and media attention; helpful for short-term comps but likely temporary. Promotions
• Negative Sentiment: Insider selling — A disclosed sale by a senior U.S. executive (Form 4) may have added to near-term selling pressure as some investors lock in gains after the earnings pop. Insider Sale
• Negative Sentiment: Franchisee execution risk — Reports of tension between corporate pricing/value pushes and some franchisees could complicate uniform execution and margins across markets, a potential headwind if disputes persist. Franchisee Tensions

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.