McDonald's (NYSE:MCD) Raised to "Hold" at Robert W. Baird

Key Points

• Robert W. Baird upgraded McDonald’s to “Hold,” while analyst sentiment remains more positive overall, with a consensus “Moderate Buy” rating and average price target of $325.88.
• McDonald’s shares opened at $268.05, near the lower end of their 12-month range. The company’s latest quarterly results beat EPS estimates ($3.38 versus $3.32), although revenue of $7.10 billion fell slightly short of expectations.
• Insiders recently sold shares, while institutional investors and hedge funds own approximately 70.29% of the stock; corporate insiders own 0.26%.

McDonald's (NYSE:MCD - Get Free Report) was upgraded by Robert W. Baird to a "hold" rating in a research note issued on Monday,Zacks.com reports.

MCD has been the topic of a number of other research reports. Erste Group Bank downgraded McDonald's from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. JPMorgan Chase & Co. reduced their price target on McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Sanford C. Bernstein restated a "market perform" rating and issued a $295.00 price target on shares of McDonald's in a research note on Wednesday, August 5th. Finally, Tigress Financial boosted their price target on McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a research report on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat.com, McDonald's presently has a consensus rating of "Moderate Buy" and an average price target of $325.88.

McDonald's Stock Down 1.6%

Shares of MCD stock opened at $268.05 on Monday. McDonald's has a 12 month low of $260.96 and a 12 month high of $341.75. The company's fifty day simple moving average is $271.68 and its 200-day simple moving average is $292.78. The firm has a market cap of $189.68 billion, a PE ratio of 21.77, a P/E/G ratio of 3.05 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period in the previous year, the business earned $3.19 EPS. The company's revenue was up 3.7% compared to the same quarter last year. On average, equities analysts predict that McDonald's will post 12.88 earnings per share for the current fiscal year.

Insider Transactions at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of the business's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the transaction, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. The trade was a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.26% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Your Advocates Ltd. LLP acquired a new position in shares of McDonald's in the fourth quarter valued at $27,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of McDonald's during the 4th quarter worth about $29,000. Abound Financial LLC acquired a new stake in shares of McDonald's during the 4th quarter worth about $30,000. Entrust Financial LLC bought a new stake in shares of McDonald's during the 4th quarter worth about $31,000. Finally, Purpose Unlimited Inc. bought a new stake in shares of McDonald's during the 4th quarter worth about $31,000. 70.29% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s franchises in South Florida plan to add more than 1,000 workers, signaling continued local operating activity and potential demand growth in the region. McDonald’s franchises to add more than 1,000 workers in South Florida
• Positive Sentiment: McDonald’s is bringing back Spicy Chicken McNuggets for a limited time. The promotion could support traffic and customer engagement, though its short duration limits the likely financial impact. McDonald’s bringing back popular spicy snack
• Positive Sentiment: Analysts highlighted McDonald’s unified digital platform, which is nearing completion across major markets. Better integration could improve personalization, loyalty engagement, order frequency and restaurant productivity over time. Can MCD’s Unified Digital Platform Unlock More Growth & Productivity?
• Positive Sentiment: New and returning menu items—including limited-edition chicken nuggets, seasonal offerings and expanded cold-drink initiatives—could help McDonald’s compete for beverage and value-oriented spending. McDonald’s cold-drink competition

About McDonald's

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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