BTIG Research Reiterates Buy Rating for McDonald's (NYSE:MCD)

Key Points

• BTIG Research reiterated its Buy rating on McDonald’s and set a $350 price target, implying 38.42% upside from the prior close. The broader analyst consensus is Moderate Buy, with an average target of $317.91.
• McDonald’s shares opened at $252.85, down 1.8%, and remain below their 50-day and 200-day moving averages. The company’s latest quarterly results beat earnings expectations, reporting $3.38 per share versus the $3.32 consensus, while revenue rose 3.7% year over year.
• Institutional investors own 70.29% of McDonald’s stock, while the company focuses on digital and delivery growth. Investors are also awaiting the September 23 investor day for longer-term financial targets and details on addressing challenging customer demand.

McDonald's (NYSE:MCD - Get Free Report)'s stock had its "buy" rating reiterated by investment analysts at BTIG Research in a research note issued to investors on Wednesday, Benzinga reports. They currently have a $350.00 target price on the fast-food giant's stock. BTIG Research's target price suggests a potential upside of 38.42% from the company's previous close.

Several other research analysts have also issued reports on the stock. Seaport Research Partners assumed coverage on shares of McDonald's in a research report on Wednesday. They issued a "neutral" rating for the company. Citigroup lifted their price target on McDonald's from $335.00 to $345.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Morgan Stanley cut their price objective on McDonald's from $319.00 to $308.00 and set an "equal weight" rating for the company in a report on Monday. Piper Sandler set a $286.00 price objective on McDonald's in a research report on Tuesday, August 4th. Finally, Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, McDonald's presently has an average rating of "Moderate Buy" and a consensus target price of $317.91.

McDonald's Trading Down 1.8%

Shares of NYSE MCD opened at $252.85 on Wednesday. The business has a 50-day moving average of $266.66 and a 200-day moving average of $285.37. The firm has a market capitalization of $178.93 billion, a price-to-earnings ratio of 20.54, a PEG ratio of 2.78 and a beta of 0.41. McDonald's has a 12 month low of $252.15 and a 12 month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. The business 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%. McDonald's's quarterly revenue was up 3.7% on a year-over-year basis. During the same period last year, the firm posted $3.19 earnings per share. On average, analysts predict that McDonald's will post 12.88 earnings per share for the current year.

Institutional Investors Weigh In On McDonald's

Several hedge funds have recently bought and sold shares of MCD. Abound Financial LLC bought a new position in shares of McDonald's during the fourth quarter valued at approximately $30,000. Purpose Unlimited Inc. bought a new stake in shares of McDonald's during the 4th quarter worth approximately $31,000. GKV Capital Management Co. Inc. purchased a new position in McDonald's during the 1st quarter valued at $33,000. Merkkuri Wealth Advisors LLC purchased a new position in McDonald's during the 1st quarter valued at $43,000. Finally, Financial Life Planners bought a new position in McDonald's in the 1st quarter valued at $51,000. Institutional investors own 70.29% of the company's stock.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s is expanding its digital growth strategy. Its delivery platform generates more than $20 billion in systemwide sales and reaches roughly 90% of restaurants, while the company aims to route 30% of delivery orders through its own app by the end of 2027. How Investors May Respond To McDonald's US$20 Billion Delivery Push And App Strategy
• Positive Sentiment: McDonald’s plans to use its September 23 investor day to provide more detail on its long-term strategy and potentially announce financial targets through 2030. Clearer targets could help restore investor confidence if management demonstrates a credible path to stronger demand and digital growth. McDonald's Likely to Issue New Financial Targets Through 2030 at Investor Day, RBC Says
• Neutral Sentiment: Jefferies maintained its positive view of McDonald’s recovery potential but lowered its price target to $325 from $350, indicating that the brokerage still sees upside while acknowledging greater uncertainty around the timing and strength of a sales rebound. McDonald's Target Falls to $325, but Jefferies Keeps Faith in Recovery
• Negative Sentiment: Analysts expect investor day to address challenging demand conditions. The need to explain how McDonald’s will regain traffic and sustain growth is weighing on sentiment ahead of the event. McDonald's Investor Day to Provide Details on Strategy Amid Challenging Demand
• Negative Sentiment: The company’s $8 Big Mac meal promotion is intended to attract price-sensitive customers, but steep diesel prices could increase distribution and supply-chain costs, pressuring restaurant-level margins and franchisee profitability. McDonald's Pitches $8 Big Macs as Diesel Hits Record Levels

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.

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