Citigroup Cuts McDonald’s (NYSE:MCD) Price Target to $310.00

McDonald’s (NYSE:MCD) had its price target trimmed by Citigroup from $345.00 to $310.00 in a research note issued to investors on Thursday, Marketbeat Ratings reports. The firm currently has a buy rating on the fast-food giant’s stock.

MCD has been the topic of several other reports. Morgan Stanley lowered their price target on shares of McDonald’s from $319.00 to $308.00 and set an “equal weight” rating on the stock in a report on Monday, September 14th. Robert W. Baird upgraded McDonald’s to a “hold” rating in a report on Monday, August 24th. Evercore set a $320.00 price objective on McDonald’s in a research report on Thursday, July 23rd. Tigress Financial boosted their target price on McDonald’s from $385.00 to $390.00 and gave the company a “buy” rating in a research note on Friday, July 17th. Finally, Wells Fargo & Company dropped their target price on McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a research report on Thursday, July 16th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, McDonald’s has an average rating of “Moderate Buy” and an average price target of $316.39.

McDonald’s Price Performance

NYSE MCD opened at $248.69 on Thursday. The firm has a market capitalization of $175.98 billion, a price-to-earnings ratio of 20.20, a price-to-earnings-growth ratio of 2.68 and a beta of 0.41. The company has a 50 day simple moving average of $264.98 and a 200-day simple moving average of $283.86. McDonald’s has a 52-week low of $247.65 and a 52-week high of $341.75.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. The firm had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 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 3.7% on a year-over-year basis. During the same period in the previous year, the firm posted $3.19 earnings per share. On average, analysts predict that McDonald’s will post 12.88 EPS for the current year.

McDonald’s Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be issued a $1.93 dividend. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Tuesday, December 1st. McDonald’s’s dividend payout ratio is currently 60.44%.

Hedge Funds Weigh In On McDonald’s

Institutional investors have recently bought and sold shares of the stock. State Street Corp grew its stake in McDonald’s by 2.7% in the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after buying an additional 959,140 shares during the last quarter. Geode Capital Management LLC boosted its holdings in McDonald’s by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock valued at $5,195,965,000 after acquiring an additional 76,090 shares during the period. Norges Bank acquired a new stake in shares of McDonald’s in the fourth quarter valued at about $2,890,438,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of McDonald’s by 7.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant’s stock valued at $1,699,314,000 after purchasing an additional 384,762 shares during the last quarter. Finally, Bank of New York Mellon Corp grew its position in shares of McDonald’s by 0.8% in the fourth quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant’s stock valued at $1,614,843,000 after purchasing an additional 40,506 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s raised its quarterly dividend 3.8% to $1.93 per share, or $7.72 annualized, marking 50 consecutive years of increases and officially placing the company among the Dividend Kings. The increase supports the stock’s income appeal, with a yield of approximately 3.1%. McDonald’s marks 50 consecutive years of dividend increases
• Positive Sentiment: BTIG initiated or reiterated a “Buy” rating, while Citigroup maintained a Buy rating despite reducing its price target from $345 to $310. The revised target still implies substantial potential upside from current levels. McDonald’s earns Buy rating from BTIG Research
• Positive Sentiment: One Wall Street analyst argues that the selloff has created a possible 45% recovery opportunity if McDonald’s can restore sales momentum and close its valuation gap with the broader market. McDonald’s potential 45% gain

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.