McDonald's (NYSE:MCD) Given New $307.00 Price Target at KeyCorp

Key Points

• KeyCorp raised McDonald’s price target to $307 from $280 and maintained an “overweight” rating, implying 9.63% upside from the share price cited in the report.
• Analyst consensus is “Moderate Buy,” with an average price target of $295.24; ratings include 22 Buys, 13 Holds, one Strong Buy, and one Sell.
• McDonald’s reported quarterly EPS of $3.57, beating expectations, but revenue of $7.16 billion fell short of forecasts. U.S. comparable sales declined 0.2%, according to the article’s cited updates.

McDonald's (NYSE:MCD - Get Free Report) had its price target raised by research analysts at KeyCorp from $280.00 to $307.00 in a research report issued on Thursday, Benzinga reports. The firm presently has an "overweight" rating on the fast-food giant's stock. KeyCorp's price target suggests a potential upside of 9.63% from the company's current price.

Several other research analysts have also recently weighed in on the stock. JPMorgan Chase & Co. decreased their price objective on shares of McDonald's from $280.00 to $260.00 and set an "overweight" rating on the stock in a research report on Thursday, September 24th. Freedom Capital upgraded shares of McDonald's from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 5th. Bank of America lifted their price target on shares of McDonald's from $339.00 to $343.00 in a report on Wednesday, August 5th. BTIG Research increased their target price on McDonald's from $295.00 to $305.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, HC Wainwright set a $250.00 price objective on shares of McDonald's in a report on Friday, September 25th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $295.24.

McDonald's Stock Performance

McDonald's stock traded down $0.19 during mid-day trading on Thursday, reaching $280.03. The company's stock had a trading volume of 1,454,814 shares, compared to its average volume of 4,326,264. The company has a market capitalization of $198.16 billion, a P/E ratio of 22.70, a PEG ratio of 3.01 and a beta of 0.42. McDonald's has a 12-month low of $229.20 and a 12-month high of $341.75. The firm's fifty day moving average price is $248.20 and its two-hundred day moving average price is $282.85.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 EPS for the quarter, topping the consensus estimate of $3.38 by $0.19. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%. The business had revenue of $7.16 billion during the quarter, compared to the consensus estimate of $7.28 billion. During the same quarter last year, the company earned $3.22 EPS. The firm's revenue was up 1.1% compared to the same quarter last year. On average, research analysts predict that McDonald's will post 12.82 EPS for the current fiscal year.

Hedge Funds Weigh In On McDonald's

A number of institutional investors have recently bought and sold shares of the stock. Cassia Capital Partners LLC boosted its position in McDonald's by 10.7% during the 3rd quarter. Cassia Capital Partners LLC now owns 5,077 shares of the fast-food giant's stock worth $1,173,000 after purchasing an additional 492 shares during the period. Gables Capital Management Inc. raised its stake in shares of McDonald's by 18.9% in the 3rd quarter. Gables Capital Management Inc. now owns 16,111 shares of the fast-food giant's stock valued at $3,721,000 after purchasing an additional 2,560 shares in the last quarter. Marathon Wealth Advisors LLC grew its position in shares of McDonald's by 0.6% in the 3rd quarter. Marathon Wealth Advisors LLC now owns 10,571 shares of the fast-food giant's stock worth $2,441,000 after acquiring an additional 61 shares in the last quarter. Gen Wealth Partners Inc raised its holdings in shares of McDonald's by 5.0% during the third quarter. Gen Wealth Partners Inc now owns 7,848 shares of the fast-food giant's stock worth $1,812,000 after purchasing an additional 374 shares during the period. Finally, Kinsale Capital Group Inc. lifted its holdings in shares of McDonald's by 2.4% in the 3rd quarter. Kinsale Capital Group Inc. now owns 43,309 shares of the fast-food giant's stock worth $10,002,000 after purchasing an additional 1,025 shares during the last quarter. 70.29% of the stock is owned by institutional investors.

Trending Headlines about McDonald's

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

• Positive Sentiment: Adjusted Q3 earnings were $3.57 per share, ahead of the roughly $3.38 analyst consensus and up from $3.22 a year earlier. Stronger franchised margins and international performance helped offset U.S. softness. McDonald’s Q3 Earnings Beat on Franchised Margins, Revenues Miss
• Positive Sentiment: Management said U.S. sales improved as the quarter progressed, with value promotions helping draw diners back. Investors are looking to these efforts to support a recovery in traffic. McDonald's says US sales on the mend as promotions draw diners back
• Positive Sentiment: The company plans additional value bundles and is testing affordable offers at U.S. restaurants, aiming to attract budget-conscious customers. McDonald’s also raised its dividend for the 50th consecutive year. Why McDonald's Stock Popped Today
• Neutral Sentiment: New value bundles could help restore traffic, but their effectiveness will depend on execution and franchisee participation; the company has reported tensions with some franchisees over promotions and pricing. McDonald’s says US sales are improving amid tensions with franchisees
• Negative Sentiment: Revenue was $7.16 billion, below the roughly $7.28 billion consensus, while U.S. comparable sales fell 0.2%—the first decline in six quarters—amid pressured consumer spending and weaker traffic. McDonald's US sales decline for first time in six quarters despite value push

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.

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