McDonald’s’ (MCD) “Hold” Rating Reaffirmed at TD Cowen

McDonald’s (NYSE:MCD)‘s stock had its “hold” rating reiterated by analysts at TD Cowen in a research note issued to investors on Thursday,Benzinga reports. They currently have a $320.00 target price on the fast-food giant’s stock. TD Cowen’s price target suggests a potential downside of 1.03% from the stock’s previous close.

Other equities analysts have also recently issued reports about the company. Mizuho raised their price objective on McDonald’s from $300.00 to $325.00 and gave the stock a “neutral” rating in a research note on Friday, February 6th. Robert W. Baird raised their price target on shares of McDonald’s from $322.00 to $325.00 and gave the stock a “neutral” rating in a research report on Thursday, November 6th. Sanford C. Bernstein reaffirmed an “overweight” rating and issued a $372.00 price target on shares of McDonald’s in a report on Wednesday, January 7th. Guggenheim increased their price objective on shares of McDonald’s from $310.00 to $325.00 and gave the stock a “neutral” rating in a research note on Tuesday, February 3rd. Finally, Piper Sandler reissued a “neutral” rating and issued a $325.00 target price on shares of McDonald’s in a report on Wednesday, October 22nd. Thirteen investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $332.77.

McDonald’s Price Performance

Shares of MCD stock opened at $323.33 on Thursday. The firm has a fifty day moving average of $312.21 and a two-hundred day moving average of $307.90. The firm has a market cap of $230.26 billion, a P/E ratio of 27.59, a P/E/G ratio of 3.29 and a beta of 0.52. McDonald’s has a 1-year low of $283.47 and a 1-year high of $328.06.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, topping the consensus estimate of $3.05 by $0.07. The business had revenue of $7.01 billion for the quarter, compared to analysts’ expectations of $6.81 billion. McDonald’s had a net margin of 32.04% and a negative return on equity of 280.89%. The company’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter last year, the company posted $2.83 earnings per share. On average, sell-side analysts expect that McDonald’s will post 12.25 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Desiree Ralls-Morrison sold 2,486 shares of the stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $320.00, for a total value of $795,520.00. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $2,005,760. This represents a 28.40% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Manuel Jm Steijaert sold 6,567 shares of the firm’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 directly owned 4,606 shares in the company, valued at approximately $1,407,133. The trade was a 58.78% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 34,634 shares of company stock valued at $10,749,559 over the last three months. 0.25% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Encompass More Asset Management boosted its stake in McDonald’s by 1.5% during the fourth quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock valued at $648,000 after buying an additional 32 shares in the last quarter. WD Rutherford LLC lifted its holdings in McDonald’s by 1.0% in the 3rd quarter. WD Rutherford LLC now owns 3,261 shares of the fast-food giant’s stock valued at $991,000 after acquiring an additional 33 shares during the last quarter. Physician Wealth Advisors Inc. lifted its holdings in McDonald’s by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock valued at $642,000 after acquiring an additional 33 shares during the last quarter. Redhawk Wealth Advisors Inc. boosted its position in shares of McDonald’s by 1.4% during the 3rd quarter. Redhawk Wealth Advisors Inc. now owns 2,423 shares of the fast-food giant’s stock valued at $736,000 after purchasing an additional 34 shares in the last quarter. Finally, Symmetry Partners LLC grew its stake in shares of McDonald’s by 2.0% in the 3rd quarter. Symmetry Partners LLC now owns 1,771 shares of the fast-food giant’s stock worth $538,000 after purchasing an additional 34 shares during the last quarter. Institutional investors and hedge funds 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: Q4 beat — McDonald’s reported stronger-than-expected Q4 results (revenue up ~9.7% YoY; EPS beat consensus), driven by rising comparable sales and traffic tied to value offers. This is the primary bullish catalyst supporting the stock. Read More.
• Positive Sentiment: Value strategy and loyalty gains — Management says Extra Value Meals and promotions pulled back budget-conscious customers; systemwide loyalty sales rose ~20% and 90‑day active users climbed to ~210M, underpinning sustainable traffic and digital sales growth. Read More.
• Positive Sentiment: Analyst backdrop supportive — Multiple firms have buy/overweight ratings and recent price targets generally sit above the current share level, giving analysts a lift to investor confidence after the results. Read More.
• Positive Sentiment: Menu innovation to address trends — McDonald’s is testing high‑protein menu items to appeal to consumers using GLP‑1 weight‑loss drugs, a potential revenue hedge if eating habits shift. Read More.
• Neutral Sentiment: Marketing buzz — Limited-time stunts (e.g., McNugget “caviar” kits) sold out quickly and drove media attention and short‑term traffic, but are unlikely to be a sustained earnings driver. Read More.
• Neutral Sentiment: Growth roadmap commentary — Coverage (podcasts/analysis) highlights management’s push toward a larger store base (discussion of a 50k footprint) — strategic upside but long‑dated. Read More.
• Negative Sentiment: Franchisee friction — Some franchisees resist centralized pricing/value moves, which could complicate uniform execution and limit margin upside if disputes persist. Read More.
• Negative Sentiment: Insider selling — A senior U.S. executive disclosed the sale of ~2,626 shares (~$854K), which may be interpreted as profit-taking and can damp investor sentiment after the earnings pop. Read More.

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.