Citigroup Issues Pessimistic Forecast for McDonald's (NYSE:MCD) Stock Price

Key Points

• Citigroup has lowered its price target for McDonald's stock from $381.00 to $375.00, maintaining a "buy" rating, which suggests a potential upside of 21.98% from the recent close.
• The consensus rating for McDonald's among analysts is currently a "Hold," with an average target price of $324.41, amidst mixed ratings from various investment firms.
• In the latest quarter, McDonald's reported earnings of $3.19 per share, exceeding expectations, and showed a year-over-year revenue increase of 5.4% to $6.84 billion.

McDonald's (NYSE:MCD - Get Free Report) had its target price lowered by investment analysts at Citigroup from $381.00 to $375.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the fast-food giant's stock. Citigroup's price target indicates a potential upside of 21.98% from the stock's previous close.

MCD has been the subject of a number of other reports. Melius initiated coverage on shares of McDonald's in a research report on Monday, July 14th. They issued a "sell" rating and a $250.00 price objective for the company. Guggenheim decreased their price target on shares of McDonald's from $310.00 to $295.00 and set a "neutral" rating on the stock in a research note on Friday, October 10th. BMO Capital Markets lifted their price target on shares of McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research note on Thursday, September 4th. Piper Sandler lifted their price target on shares of McDonald's from $314.00 to $325.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Finally, Stifel Nicolaus lifted their price target on shares of McDonald's from $300.00 to $315.00 and gave the stock a "hold" rating in a research note on Friday, August 22nd. Eleven investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $324.41.

McDonald's Price Performance

Shares of MCD stock traded down $0.35 on Tuesday, hitting $307.42. The stock had a trading volume of 587,032 shares, compared to its average volume of 3,460,326. The business has a 50 day moving average of $306.36 and a 200 day moving average of $305.47. The stock has a market cap of $219.38 billion, a price-to-earnings ratio of 26.35, a price-to-earnings-growth ratio of 3.25 and a beta of 0.50. McDonald's has a 12-month low of $276.53 and a 12-month high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.15 by $0.04. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The business had revenue of $6.84 billion during the quarter, compared to the consensus estimate of $6.68 billion. During the same quarter last year, the company posted $2.97 earnings per share. The firm's quarterly revenue was up 5.4% compared to the same quarter last year. As a group, research analysts expect that McDonald's will post 12.25 earnings per share for the current fiscal year.

Insider Buying and Selling at McDonald's

In related news, CMO Edith Morgan Flatley sold 1,000 shares of the company's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $315.00, for a total value of $315,000.00. Following the transaction, the chief marketing officer owned 6,858 shares in the company, valued at $2,160,270. The trade was a 12.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 939 shares of the stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total transaction of $281,221.11. Following the transaction, the insider owned 9,283 shares in the company, valued at approximately $2,780,165.67. This trade represents a 9.19% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 6,402 shares of company stock worth $1,973,407. Corporate insiders own 0.25% of the company's stock.

Institutional Investors Weigh In On McDonald's

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Decker Retirement Planning Inc. grew its holdings in McDonald's by 142.9% during the 2nd quarter. Decker Retirement Planning Inc. now owns 85 shares of the fast-food giant's stock valued at $25,000 after buying an additional 50 shares in the last quarter. Legacy Investment Solutions LLC bought a new position in shares of McDonald's during the 2nd quarter valued at approximately $25,000. HFM Investment Advisors LLC bought a new position in shares of McDonald's during the 1st quarter valued at approximately $26,000. Nova Wealth Management Inc. bought a new position in shares of McDonald's during the 1st quarter valued at approximately $26,000. Finally, GFG Capital LLC bought a new position in shares of McDonald's during the 2nd quarter valued at approximately $29,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

About McDonald's

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.

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