McDonald’s (NYSE:MCD) Price Target Cut to $250.00 by Analysts at Jefferies Financial Group

McDonald’s (NYSE:MCD) had its price target lowered by Jefferies Financial Group from $260.00 to $250.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The firm presently has an “overweight” rating on the fast-food giant’s stock. Jefferies Financial Group’s price target suggests a potential upside of 6.16% from the stock’s previous close.

MCD has been the topic of a number of other research reports. Tigress Financial upped their target price on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. BTIG Research reduced their price target on McDonald’s from $350.00 to $295.00 and set a “buy” rating for the company in a research report on Thursday, September 24th. JPMorgan Chase & Co. decreased their price target on McDonald’s from $280.00 to $260.00 and set an “overweight” rating for the company in a report on Thursday, September 24th. BMO Capital Markets lowered their price objective on McDonald’s from $335.00 to $310.00 and set an “outperform” rating on the stock in a research report on Thursday, September 24th. Finally, Melius Research dropped their price objective on shares of McDonald’s from $250.00 to $230.00 and set a “sell” rating on the stock in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $294.38.

McDonald’s Trading Up 0.8%

Shares of NYSE:MCD traded up $1.89 on Tuesday, hitting $235.49. 678,770 shares of the company were exchanged, compared to its average volume of 4,112,749. The firm has a market capitalization of $166.64 billion, a P/E ratio of 19.14, a price-to-earnings-growth ratio of 2.56 and a beta of 0.41. McDonald’s has a 1-year low of $232.06 and a 1-year high of $341.75. The stock’s 50 day moving average price is $261.55 and its 200 day moving average price is $279.74.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same quarter in the prior year, the company earned $3.19 EPS. McDonald’s’s quarterly revenue was up 3.7% on a year-over-year basis. On average, equities analysts predict that McDonald’s will post 12.86 EPS for the current fiscal year.

Institutional Trading of McDonald’s

Several large investors have recently bought and sold shares of MCD. Bank of New York Mellon Corp purchased a new position in shares of McDonald’s in the 2nd quarter valued at about $1,359,276,000. Diamant Asset Management Inc. lifted its stake 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 last quarter. J. Stern & Co. LLP lifted its stake in McDonald’s by 9,867.5% during 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 during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in 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 valued at $948,779,000 after purchasing an additional 1,033,041 shares in the last quarter. Finally, State Street Corp boosted its holdings in 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 in the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is targeting roughly 250 basis points of restaurant-level efficiency gains through its NEXT strategy, while artificial intelligence could reduce labor requirements by about 50 hours per week at participating restaurants. These initiatives may improve franchisee economics and margins over time. Restaurant Dive article
• Positive Sentiment: The company is testing advertising on drive-thru menu boards through a media network at approximately 450 U.S. company-owned restaurants. Management hopes the platform could eventually become a substantial new revenue opportunity, potentially approaching $1 billion. Quartz article
• Positive Sentiment: McDonald’s scale, franchise model, valuation and dividend history remain supportive factors. Recent commentary describes the dividend as backed by recurring franchise-related cash flow, while some analysts view the depressed valuation as an opportunity for long-term investors.
• Neutral Sentiment: McDonald’s is increasingly using AI to guide menu pricing. The technology could improve revenue and profitability, but aggressive or inconsistent pricing may alienate customers and invite regulatory or antitrust scrutiny. Reuters article
• Negative Sentiment: Melius Research downgraded MCD to “Strong Sell,” adding pressure to the stock and reinforcing concerns about weakening traffic and limited near-term growth.
• Negative Sentiment: Morgan Stanley expects U.S. comparable sales to remain pressured through year-end because of difficult comparisons, and it lowered earnings estimates through 2030 to reflect investment costs associated with NEXT. Price-target cuts from Morgan Stanley and Melius further weighed on sentiment. Yahoo Finance article
• Negative Sentiment: Higher 10-year Treasury yields have coincided with a major decline in McDonald’s shares, making the stock’s income-oriented valuation less attractive and increasing competition from bonds. The relationship may also be partly coincidental, but it adds to macroeconomic pressure.
• Negative Sentiment: Technical weakness is amplifying the concerns: MCD is trading near a multiyear low and well below its long-term moving averages, signaling deteriorating momentum.

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.