McDonald’s Corporation (NYSE:MCD) Receives $316.39 Consensus Price Target from Brokerages

McDonald’s Corporation (NYSE:MCD) has been given an average rating of “Moderate Buy” by the twenty-seven analysts that are currently covering the firm, MarketBeat.com reports. Eleven investment analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among analysts that have covered the stock in the last year is $316.3913.

A number of brokerages recently issued reports on MCD. Argus dropped their price target on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating on the stock in a research note on Wednesday, August 26th. BTIG Research restated a “buy” rating and set a $350.00 price objective on shares of McDonald’s in a research note on Wednesday, September 16th. Wells Fargo & Company decreased their target price on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday, July 16th. Morgan Stanley dropped their target price on shares of McDonald’s from $319.00 to $308.00 and set an “equal weight” rating on the stock in a research note on Monday, September 14th. Finally, KeyCorp cut their price target on shares of McDonald’s from $315.00 to $305.00 and set an “overweight” rating on the stock in a report on Wednesday, August 5th.

McDonald’s Stock Up 0.2%

McDonald’s stock opened at $248.69 on Friday. The company has a market capitalization of $175.98 billion, a P/E ratio of 20.20, a PEG ratio of 2.68 and a beta of 0.41. The stock’s 50 day moving average is $264.98 and its 200 day moving average is $283.50. McDonald’s has a twelve month low of $247.65 and a twelve month 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 earnings per share (EPS) for the quarter, beating 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 analysts’ expectations of $7.13 billion. During the same quarter in the previous year, the business earned $3.19 earnings per share. The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. As a group, equities analysts expect 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 given a $1.93 dividend. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $7.72 annualized dividend and a yield of 3.1%. McDonald’s’s payout ratio is currently 62.71%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Allied Investment Advisors LLC increased its stake in shares of McDonald’s by 2.6% in the fourth quarter. Allied Investment Advisors LLC now owns 1,366 shares of the fast-food giant’s stock worth $417,000 after acquiring an additional 34 shares during the period. Sterling Investment Advisors Ltd. lifted its position in McDonald’s by 0.6% during the fourth quarter. Sterling Investment Advisors Ltd. now owns 5,799 shares of the fast-food giant’s stock valued at $1,772,000 after purchasing an additional 35 shares during the period. Cypress Capital Management LLC WY lifted its position in McDonald’s by 7.0% during the fourth quarter. Cypress Capital Management LLC WY now owns 535 shares of the fast-food giant’s stock valued at $164,000 after purchasing an additional 35 shares during the period. Sound Income Strategies LLC boosted its holdings in McDonald’s by 0.6% in the first quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant’s stock valued at $1,718,000 after purchasing an additional 35 shares during the last quarter. Finally, Rooted Wealth Advisors Inc. boosted its holdings in McDonald’s by 1.7% in the fourth quarter. Rooted Wealth Advisors Inc. now owns 2,207 shares of the fast-food giant’s stock valued at $714,000 after purchasing an additional 36 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

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

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.