Robert W. Baird Cuts McDonald's (NYSE:MCD) Price Target to $250.00

Key Points

• Robert W. Baird lowered McDonald’s price target from $285 to $250 and maintained a “neutral” rating, implying approximately 4.46% upside from the stock’s $239.33 price.
• McDonald’s shares are near their 52-week low, with the stock trading below both its 50-day and 200-day moving averages. The company reported quarterly earnings of $3.38 per share, slightly above estimates, while revenue rose 3.7% year over year.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $302.50, although several brokerages have recently reduced their targets amid concerns about inflation, weak traffic and consumer demand.

McDonald's (NYSE:MCD - Get Free Report) had its target price decreased by stock analysts at Robert W. Baird from $285.00 to $250.00 in a report issued on Thursday, Marketbeat.com reports. The brokerage presently has a "neutral" rating on the fast-food giant's stock. Robert W. Baird's price objective would indicate a potential upside of 4.46% from the company's current price.

Several other brokerages have also recently weighed in on MCD. Citigroup dropped their price target on shares of McDonald's from $345.00 to $310.00 and set a "buy" rating for the company in a research report on Thursday, September 17th. Morgan Stanley cut their price objective on shares of 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. Royal Bank Of Canada decreased their target price on McDonald's from $290.00 to $285.00 and set a "sector perform" rating for the company in a research report on Thursday. Deutsche Bank Aktiengesellschaft dropped their price target on McDonald's from $325.00 to $300.00 and set a "buy" rating on the stock in a research note on Monday, September 14th. Finally, BMO Capital Markets cut their target price on shares of McDonald's from $335.00 to $310.00 and set an "outperform" rating for the company in a research report on Thursday. One investment 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 company. According to data from MarketBeat.com, McDonald's has a consensus rating of "Moderate Buy" and an average target price of $302.50.

McDonald's Price Performance

Shares of NYSE MCD traded up $1.01 during mid-day trading on Thursday, reaching $239.33. 4,542,855 shares of the company's stock were exchanged, compared to its average volume of 4,098,058. The firm has a 50-day moving average price of $263.58 and a two-hundred day moving average price of $281.71. The firm has a market capitalization of $169.36 billion, a price-to-earnings ratio of 19.43, a price-to-earnings-growth ratio of 2.71 and a beta of 0.41. McDonald's has a 52 week low of $234.03 and a 52 week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. The firm had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.13 billion. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company's quarterly revenue 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, sell-side analysts forecast that McDonald's will post 12.88 EPS for the current fiscal year.

Institutional Trading of McDonald's

Several institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp increased its stake in McDonald's by 1.8% in the second quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock valued at $9,752,921,000 after purchasing an additional 646,675 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of McDonald's by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock valued at $5,195,965,000 after buying an additional 76,090 shares during the last quarter. Norges Bank bought a new stake in shares of McDonald's during the 4th quarter worth about $2,890,438,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in McDonald's by 7.4% during 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 valued at $1,699,314,000 after purchasing an additional 384,762 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its position in McDonald's by 0.8% in the fourth quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant's stock worth $1,614,843,000 after acquiring an additional 40,506 shares in the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key McDonald's News

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

• Positive Sentiment: McDonald’s announced its NEXT strategy, which includes restaurant modernization, AI-enabled ordering and operations, employee training, expanded chicken and protein offerings, and support for franchisees. Management is targeting improved productivity and operating margins potentially exceeding 50% by 2030. McDonald’s NEXT strategy and margin outlook
• Positive Sentiment: Analysts remain constructive despite reducing their estimates: Oppenheimer cut its price target to $295 while maintaining an “outperform” rating, JPMorgan lowered its target to $260 with an “overweight” rating, and BTIG set a $295 target with a “buy” rating. Analyst views on McDonald’s
• Positive Sentiment: McDonald’s increased its dividend by nearly 4%, supporting the stock’s appeal to income-focused investors. Unusually heavy call-option activity also suggests some traders are positioning for a rebound, although options activity is not a guarantee of future performance. McDonald’s dividend increase
• Neutral Sentiment: The company plans to spend approximately $8.5 billion through 2036—about $5 billion by 2030—to provide rent relief and capital support to franchisees, refresh restaurants, upgrade technology, and improve service. The investment could strengthen long-term sales but weighs on near-term cash flow and returns. McDonald’s franchisee support plan
• Negative Sentiment: Investors were discouraged by management’s cautious outlook for persistent inflation and flat traffic, particularly among lower-income customers. The large spending commitment, slower expected growth, and several analyst target reductions intensified concerns about execution and profitability. McDonald’s inflation and traffic outlook
• Negative Sentiment: Shares have fallen sharply and are on track for a prolonged losing streak as investors question whether chicken innovation, protein-focused menu items, GLP-1-friendly offerings, and a new advertising business can offset weak consumer demand soon. McDonald’s chicken and AI strategy

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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