McDonald's (NYSE:MCD) Stock Price Target Raised at Citigroup

Key Points

• Citigroup raised its McDonald’s price target from $295 to $315 and maintained a Buy rating, implying about 13.3% upside from the share price cited in the report.
• Analyst sentiment is broadly positive: MarketBeat reports a Moderate Buy consensus and an average price target of $297.21, though some analysts rate the stock Hold or Sell.
• McDonald’s quarterly EPS of $3.57 beat estimates, but revenue missed forecasts; U.S. comparable sales fell 0.2%, reflecting sluggish traffic and pressure on consumers.

McDonald's (NYSE:MCD - Get Free Report) had its price target upped by equities research analysts at Citigroup from $295.00 to $315.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the fast-food giant's stock. Citigroup's target price indicates a potential upside of 13.28% from the stock's current price.

A number of other research analysts have also recently weighed in on MCD. HC Wainwright set a $250.00 price target on McDonald's in a research report on Friday, September 25th. Seaport Research Partners initiated coverage on shares of McDonald's in a research report on Wednesday, September 16th. They issued a "neutral" rating on the stock. Argus lowered their price objective on shares of McDonald's from $320.00 to $310.00 and set a "buy" rating on the stock in a research note on Wednesday, August 26th. Guggenheim lowered their price objective on shares of McDonald's from $290.00 to $250.00 and set a "neutral" rating on the stock in a research note on Monday, October 5th. Finally, UBS Group restated a "buy" rating on shares of McDonald's in a report on Monday, October 19th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $297.21.

McDonald's Trading Down 0.8%

Shares of NYSE:MCD traded down $2.16 during trading on Thursday, hitting $278.06. 7,258,663 shares of the stock were exchanged, compared to its average volume of 4,353,272. The company has a fifty day moving average price of $248.20 and a two-hundred day moving average price of $282.85. The company has a market cap of $196.77 billion, a PE ratio of 22.59, a P/E/G 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.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.38 by $0.19. The firm had revenue of $7.16 billion during the quarter, compared to analysts' expectations of $7.28 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%. McDonald's's revenue was up 1.1% on a year-over-year basis. During the same period in the previous year, the firm posted $3.22 earnings per share. Equities research analysts anticipate that McDonald's will post 12.82 earnings per share for the current fiscal year.

Institutional Trading of McDonald's

Several hedge funds and other institutional investors have recently bought and sold shares of the company. GKV Capital Management Co. Inc. bought a new stake in shares of McDonald's in the 1st quarter worth approximately $33,000. POM Investment Strategies LLC raised its holdings in shares of McDonald's by 46.2% during the second quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant's stock valued at $47,000 after acquiring an additional 55 shares in the last quarter. Westfuller Advisors LLC raised its holdings in shares of McDonald's by 140.0% during the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant's stock valued at $49,000 after acquiring an additional 105 shares in the last quarter. Burkett Financial Services LLC raised its holdings in shares of McDonald's by 2,312.5% during the third quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant's stock valued at $45,000 after acquiring an additional 185 shares in the last quarter. Finally, Main Street Group LTD purchased a new stake in McDonald's in the first quarter worth $64,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: Third-quarter adjusted EPS of $3.57 beat the roughly $3.38 analyst estimate, with franchised margins and international markets helping offset domestic weakness. McDonald's Q3 Earnings Beat, but U.S. Traffic Still Pressures Growth
• Positive Sentiment: KeyCorp raised its price target to $307 and Wells Fargo lifted its target to $300; both maintained Overweight ratings, signaling potential upside in their assessments. KeyCorp recommendations Wells Fargo recommendations
• Neutral Sentiment: McDonald’s is testing value-menu options in 1,900 U.S. restaurants, with a possible nationwide launch in early 2027. Affordable bundles, digital offers and beverage expansion are intended to bring customers back, though their effect on sales and margins is not yet clear. McDonald's plans new value menu offerings next year
• Negative Sentiment: Revenue of $7.16 billion fell short of the roughly $7.28 billion forecast. U.S. comparable sales declined 0.2%—the first drop in six quarters—as consumers remain pressured by living costs and restaurant traffic is sluggish. McDonald's US sales decline for first time in six quarters

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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