McDonald's (NYSE:MCD) Price Target Lowered to $295.00 at Oppenheimer

Key Points

• Oppenheimer lowered McDonald’s price target from $325 to $295 while maintaining an “outperform” rating, implying 22.67% upside from the prior close.
• Analyst sentiment remains favorable but mixed: McDonald’s has a “Moderate Buy” consensus rating and an average price target of $303.96, with recent targets ranging from $260 to $390.
• Shares traded near $240.47, close to the stock’s 52-week low, despite the company exceeding quarterly EPS expectations and reporting 3.7% year-over-year revenue growth.

McDonald's (NYSE:MCD - Get Free Report) had its target price lowered by analysts at Oppenheimer from $325.00 to $295.00 in a research note issued to investors on Thursday, Briefing.com reports. The brokerage presently has an "outperform" rating on the fast-food giant's stock. Oppenheimer's target price points to a potential upside of 22.67% from the stock's previous close.

MCD has been the topic of a number of other reports. UBS Group set a $260.00 target price on shares of McDonald's in a research note on Thursday. BTIG Research lowered their target price on shares of McDonald's from $350.00 to $295.00 and set a "buy" rating for the company in a research note on Thursday. Tigress Financial lifted their price target on McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a report on Friday, July 17th. Citigroup decreased their target price on McDonald's from $345.00 to $310.00 and set a "buy" rating for the company in a research note on Thursday, September 17th. Finally, Guggenheim cut their price objective on shares of McDonald's from $320.00 to $290.00 and set a "neutral" rating on the stock in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $303.96.

McDonald's Price Performance

Shares of NYSE:MCD traded up $2.15 during mid-day trading on Thursday, reaching $240.47. 3,151,701 shares of the company were exchanged, compared to its average volume of 4,089,509. McDonald's has a 1 year low of $234.03 and a 1 year high of $341.75. The firm's 50-day simple moving average is $263.58 and its 200 day simple moving average is $281.71. The firm has a market cap of $170.17 billion, a price-to-earnings ratio of 19.57, a P/E/G ratio of 2.71 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The firm had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same quarter in the prior year, the company earned $3.19 EPS. McDonald's's revenue was up 3.7% on a year-over-year basis. On average, research analysts forecast that McDonald's will post 12.88 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in MCD. Ascentis Wealth Management LLC grew its holdings in McDonald's by 4,008.8% during the 2nd quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant's stock valued at $22,768,000 after purchasing an additional 82,180 shares in the last quarter. Borer Denton & Associates Inc. boosted its stake in McDonald's by 16.9% during the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant's stock valued at $3,746,000 after acquiring an additional 2,000 shares during the last quarter. Peterson Wealth Services grew its position in shares of McDonald's by 3,294.5% in the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant's stock worth $3,600,000 after acquiring an additional 11,432 shares in the last quarter. HighTower Advisors LLC lifted its holdings in shares of McDonald's by 7.1% in the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant's stock worth $397,822,000 after purchasing an additional 97,060 shares during the last quarter. Finally, Capital International Sarl lifted its position in McDonald's by 10.4% in the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant's stock valued at $19,639,000 after purchasing an additional 6,079 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

Key McDonald's News

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

• Positive Sentiment: McDonald’s announced a nearly 4% dividend increase, reinforcing its appeal as a mature income investment and supporting the case that the stock’s valuation has become more attractive after its decline. McDonald’s Increased Its Dividend by Nearly 4%
• Positive Sentiment: The company’s NEXT strategy calls for approximately $8.5 billion of franchisee support through 2036, including restaurant remodels, technology upgrades, employee training and productivity improvements. Management expects the investments to improve restaurant economics and margins over time. McDonald’s bets $8.5 billion on a productivity makeover
• Positive Sentiment: Growth initiatives include hand-breaded and grilled chicken, protein-focused bowls and wraps aimed at attracting health-conscious consumers and GLP-1 users, as well as AI-enabled ordering and a potential advertising network. These efforts could diversify revenue and help recover market share. Why McDonald’s is following Walmart and Amazon into advertising
• Positive Sentiment: BTIG maintained a “buy” rating with a $295 price target, while Royal Bank of Canada’s $285 target still implies substantial upside from recent levels, suggesting analysts see long-term recovery potential.
• Neutral Sentiment: Royal Bank of Canada lowered its target to $285 and shifted to “sector perform,” reflecting a more cautious near-term outlook despite retaining meaningful upside.
• Negative Sentiment: Management warned that elevated inflation and flat customer traffic could persist. Investors were also concerned that roughly $5 billion of the franchisee support plan will be spent by 2030, creating significant near-term cash commitments before the benefits of modernization are realized. McDonald’s expects inflation to keep traffic flat

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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