McDonald's (NYSE:MCD) Stock Price Target Cut by KeyCorp

Key Points

• KeyCorp lowered McDonald’s price target from $305 to $280 while maintaining an “overweight” rating, implying approximately 20.33% upside from the stock’s $232.70 opening price.
• Analyst sentiment remains broadly positive, with McDonald’s holding a “Moderate Buy” consensus rating and an average price target of $297.76, despite several firms recently cutting their targets.
• McDonald’s exceeded quarterly EPS expectations, reporting $3.38 versus the $3.32 consensus, while revenue rose 3.7% year over year to $7.10 billion; however, weak traffic, value competition and turnaround execution remain key risks.

McDonald's (NYSE:MCD - Get Free Report) had its target price reduced by analysts at KeyCorp from $305.00 to $280.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The brokerage currently has an "overweight" rating on the fast-food giant's stock. KeyCorp's price objective suggests a potential upside of 20.33% from the stock's current price.

MCD has been the subject of several other reports. Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $295.00 price objective (down from $310.00) on shares of McDonald's in a research report on Friday, September 25th. Jefferies Financial Group reduced their target price on McDonald's from $260.00 to $250.00 and set an "overweight" rating for the company in a research note on Tuesday, September 29th. Tigress Financial raised their price objective on McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a research note on Friday, July 17th. Oppenheimer cut their price target on shares of McDonald's from $325.00 to $295.00 and set an "outperform" rating on the stock in a report on Thursday, September 24th. Finally, Rothschild & Co Redburn reduced their target price on shares of McDonald's from $306.00 to $285.00 in a report on Wednesday, August 26th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, McDonald's presently has an average rating of "Moderate Buy" and an average target price of $297.76.

McDonald's Stock Up 0.4%

Shares of McDonald's stock opened at $232.70 on Tuesday. McDonald's has a 52-week low of $229.20 and a 52-week high of $341.75. The firm's 50 day moving average price is $258.28 and its 200-day moving average price is $276.45. The company has a market cap of $164.67 billion, a P/E ratio of 18.90, a PEG ratio of 2.59 and a beta of 0.44.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly 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. The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The business's revenue for the quarter was up 3.7% on a year-over-year basis. During the same period in the previous year, the company earned $3.19 earnings per share. As a group, equities research analysts forecast that McDonald's will post 12.85 EPS for the current fiscal year.

Institutional Trading of McDonald's

Several large investors have recently bought and sold shares of MCD. State Street Corp boosted its stake in McDonald's by 1.8% during the second quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock worth $9,752,921,000 after buying an additional 646,675 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of McDonald's by 7.4% in the 4th 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 acquiring an additional 384,762 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of McDonald's during the 2nd quarter worth $1,359,276,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of McDonald's by 17.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant's stock worth $1,130,587,000 after acquiring an additional 533,448 shares during the period. Finally, Diamant Asset Management Inc. boosted its position in shares of McDonald's by 30,979.0% during the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock valued at $806,917,000 after acquiring an additional 2,587,986 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 continues to offer income support, with its 50th consecutive annual dividend increase highlighting management’s commitment to shareholder returns. The company’s McDonald’s Next growth strategy is also aimed at improving value, restaurant performance and customer traffic. McDonald’s Is Undergoing a Massive New Growth Strategy
• Positive Sentiment: New product and promotional initiatives, including an exclusive menu item and the return of the Monopoly promotion with a $1 million prize, could support customer engagement and near-term traffic. McDonald’s Is Releasing an Exclusive New Item
• Neutral Sentiment: McDonald’s supplier HyFun Foods plans a potential $208 million India IPO in late 2028, supported by rising local demand for frozen foods. The long-dated plan has limited immediate impact on MCD but underscores growth opportunities in the company’s supply chain and international markets. McDonald’s Supplier HyFun Plans India IPO
• Negative Sentiment: A lawsuit alleges that McDonald’s use of machine-learning pricing tools amounts to AI-powered menu price fixing. McDonald’s has pushed back on the claims, but the litigation creates regulatory, legal and reputational risk. McDonald’s Hit With Lawsuit Alleging AI-Powered Menu Price-Fixing
• Negative Sentiment: Analysts and market coverage continue to focus on weak traffic, intensified value competition from other restaurant chains and execution risks in the turnaround plan. Higher interest rates are also weighing broadly on consumer-discretionary stocks, adding pressure to valuation and consumer spending. Value Wars Intensify

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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