McDonald's (NYSE:MCD) Price Target Lowered to $285.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada lowered McDonald’s price target from $290 to $285 while maintaining a “sector perform” rating, implying approximately 18.9% upside from the stock’s quoted price.
• Analyst sentiment remains broadly positive: McDonald’s has a “Moderate Buy” consensus rating and an average price target of $311.25, despite several recent target reductions.
• McDonald’s reported quarterly EPS of $3.38, beating estimates of $3.32, while revenue of $7.10 billion fell slightly short of expectations but increased 3.7% year over year.

McDonald's (NYSE:MCD - Get Free Report) had its price target reduced by Royal Bank Of Canada from $290.00 to $285.00 in a research report issued on Thursday, Benzinga reports. The brokerage currently has a "sector perform" rating on the fast-food giant's stock. Royal Bank Of Canada's price target would suggest a potential upside of 18.94% from the stock's current price.

Other analysts also recently issued reports about the company. Deutsche Bank Aktiengesellschaft dropped their price objective on McDonald's from $325.00 to $300.00 and set a "buy" rating for the company in a report on Monday, September 14th. KeyCorp reiterated an "overweight" rating on shares of McDonald's in a report on Monday. Argus reduced their price target on shares of McDonald's from $320.00 to $310.00 and set a "buy" rating on the stock in a research report on Wednesday, August 26th. Morgan Stanley cut their price objective on McDonald's from $319.00 to $308.00 and set an "equal weight" rating on the stock in a research report on Monday, September 14th. Finally, Guggenheim lowered their price objective on shares of McDonald's from $320.00 to $290.00 and set a "neutral" rating for the company in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $311.25.

McDonald's Trading Up 0.5%

NYSE MCD opened at $239.61 on Thursday. The company has a market capitalization of $169.56 billion, a PE ratio of 19.50, a price-to-earnings-growth ratio of 2.71 and a beta of 0.41. The business's 50-day moving average price is $263.58 and its 200 day moving average price is $281.71. McDonald's has a twelve month low of $234.03 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period in the prior year, the firm posted $3.19 EPS. The company's revenue was up 3.7% on a year-over-year basis. Equities analysts predict that McDonald's will post 12.88 EPS for the current year.

Institutional Trading of McDonald's

Several institutional investors have recently added to or reduced their stakes in MCD. State Street Corp boosted its stake 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 acquiring an additional 959,140 shares during the period. Geode Capital Management LLC grew its stake in McDonald's by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock worth $5,195,965,000 after buying an additional 76,090 shares during the last quarter. Norges Bank bought a new position in McDonald's during the 4th quarter worth $2,890,438,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in McDonald's by 7.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant's stock worth $1,699,314,000 after buying an additional 384,762 shares during the period. Finally, Bank of New York Mellon Corp boosted its holdings in shares of McDonald's by 0.8% during the fourth quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant's stock valued at $1,614,843,000 after acquiring an additional 40,506 shares during the period. 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: BTIG maintains a Buy rating: BTIG lowered its price target from $350 to $295 but still sees approximately 23.9% upside, suggesting the recent selloff may be excessive. BTIG lowers McDonald's price target and maintains Buy rating
• Positive Sentiment: Dividend support remains attractive: McDonald’s raised its dividend by nearly 4%, reinforcing its appeal as a long-standing dividend-growth company. Some analysts argue that the market is undervaluing the company’s durable franchising model and shareholder returns. McDonald's increased its dividend by nearly 4%
• Positive Sentiment: NEXT strategy could improve longer-term growth: McDonald’s plans to invest $8.5 billion through 2036 in restaurant remodels, employee training, technology, AI-enabled ordering, and franchisee support. New grilled-chicken products, protein-focused meals, smaller portions and beverage offerings are intended to attract health-conscious customers, including users of GLP-1 medications. McDonald's outlines $8.5 billion franchisee support plan
• Positive Sentiment: Potential advertising revenue: The company is testing a media network that could eventually become a $1 billion advertising business, adding a higher-margin revenue stream beyond restaurant sales. Why McDonald's is building an advertising business

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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