McDonald's (NYSE:MCD) Given New $260.00 Price Target at Mizuho

Key Points

• Mizuho lowered McDonald’s price target from $290 to $260 and maintained a “neutral” rating, implying roughly 1% upside from the prior close.
• McDonald’s shares opened at $257.34, with a market capitalization of $182.1 billion; the stock remains below its 200-day moving average and has traded between $229.20 and $341.75 over the past year.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $294.73. The company recently exceeded quarterly EPS expectations, while institutional investors own approximately 70.29% of its shares.

McDonald's (NYSE:MCD - Get Free Report) had its price target cut by investment analysts at Mizuho from $290.00 to $260.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the fast-food giant's stock. Mizuho's price objective suggests a potential upside of 1.04% from the stock's previous close.

Several other equities analysts have also recently issued reports on MCD. Seaport Research Partners assumed coverage on shares of McDonald's in a research report on Wednesday, September 16th. They set a "neutral" rating on the stock. HSBC cut their price objective on McDonald's from $357.00 to $356.00 and set a "buy" rating on the stock in a research report on Wednesday, August 5th. UBS Group reiterated a "buy" rating on shares of McDonald's in a report on Monday, October 19th. Gordon Haskett decreased their target price on McDonald's from $315.00 to $285.00 and set a "buy" rating for the company in a research report on Thursday, September 24th. Finally, Piper Sandler set a $286.00 target price on McDonald's in a research note on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $294.73.

McDonald's Stock Up 2.7%

NYSE:MCD opened at $257.34 on Friday. The stock has a market cap of $182.10 billion, a P/E ratio of 20.90, a price-to-earnings-growth ratio of 2.86 and a beta of 0.44. The firm's fifty day simple moving average is $248.49 and its 200 day simple moving average is $283.68. McDonald's has a twelve month low of $229.20 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 EPS 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 business had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same period in the prior year, the business earned $3.19 EPS. The company's revenue for the quarter was up 3.7% on a year-over-year basis. On average, analysts expect that McDonald's will post 12.83 EPS for the current fiscal year.

Institutional Investors Weigh In On McDonald's

Several hedge funds have recently added to or reduced their stakes in the stock. Integrity Advisory Solutions LLC raised its position in shares of McDonald's by 25.6% in the 3rd quarter. Integrity Advisory Solutions LLC now owns 2,993 shares of the fast-food giant's stock worth $691,000 after acquiring an additional 610 shares in the last quarter. First Nebraska Trust Co purchased a new stake in shares of McDonald's during the 3rd quarter worth $1,387,000. Tucker Asset Management LLC boosted its position in McDonald's by 11.5% during the third quarter. Tucker Asset Management LLC now owns 1,799 shares of the fast-food giant's stock valued at $415,000 after purchasing an additional 186 shares in the last quarter. Eads & Heald Wealth Management boosted its position in McDonald's by 2.6% during the third quarter. Eads & Heald Wealth Management now owns 7,015 shares of the fast-food giant's stock valued at $1,620,000 after purchasing an additional 177 shares in the last quarter. Finally, Gerber Kawasaki Wealth & Investment Management grew its stake in McDonald's by 25.4% in the third quarter. Gerber Kawasaki Wealth & Investment Management now owns 2,118 shares of the fast-food giant's stock valued at $489,000 after purchasing an additional 429 shares during the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald's News Summary

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

• Positive Sentiment: McDonald’s stock advanced even as the broader market declined. Reuters noted that the shares have fallen about 18% this year, suggesting that investors may view the stock as oversold and positioned for a recovery. Mapping the Market: Beaten-down McDonald's stock may be ripe for a rally
• Positive Sentiment: McDonald’s is bringing back Pokémon Happy Meals in November, featuring 15 collectible toys and trading cards. The high-profile collaboration could increase family visits and promotional sales, although the financial impact is not yet quantified. Pokémon Happy Meals Are Coming Back to McDonald's
• Positive Sentiment: New seasonal drinks, a limited-time $8 Quarter Pounder meal, and the returning McRib give McDonald’s multiple value and holiday offerings that could help stimulate traffic during the important year-end selling period. McDonald's adds new holiday drinks to menu

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.