McDonald's Corporation (NYSE:MCD) Stock Has Average Target Price of $297.82 According to Analysts

Key Points

• Analysts’ consensus is “Moderate Buy,” with 22 buy and one strong-buy ratings among 38 analysts; the average 12-month price target is $297.82.
• McDonald’s quarterly earnings per share beat estimates at $3.57, but revenue came in below expectations at $7.16 billion. The company raised its quarterly dividend from $1.86 to $1.93 per share.
• The company is testing value bundles at nearly 2,000 U.S. restaurants as it seeks to attract customers amid weaker domestic comparable sales; the impact on traffic and orders remains uncertain.

McDonald's Corporation (NYSE:MCD - Get Free Report) has received a consensus rating of "Moderate Buy" from the thirty-eight ratings firms that are covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, twenty-two have issued a buy rating and one has assigned a strong buy rating to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $297.82.

Several equities analysts have recently commented on MCD shares. Daiwa Securities Group dropped their target price on shares of McDonald's from $309.00 to $293.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. Melius Research reduced their price target on shares of McDonald's from $250.00 to $230.00 and set a "sell" rating on the stock in a report on Monday, September 28th. BTIG Research raised their price target on shares of McDonald's from $295.00 to $305.00 and gave the stock a "buy" rating in a report on Thursday. UBS Group reiterated a "buy" rating on shares of McDonald's in a research report on Monday, October 19th. Finally, HC Wainwright set a $250.00 price objective on McDonald's in a research note on Friday, September 25th.

McDonald's Price Performance

Shares of MCD stock opened at $276.36 on Friday. McDonald's has a 1-year low of $229.20 and a 1-year high of $341.75. The business's fifty day moving average price is $248.76 and its 200 day moving average price is $282.57. The firm has a market capitalization of $195.56 billion, a PE ratio of 21.86, a P/E/G ratio of 3.03 and a beta of 0.42.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share for the quarter, topping the consensus estimate of $3.38 by $0.19. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.16 billion during the quarter, compared to the consensus estimate of $7.28 billion. During the same quarter in the previous year, the firm earned $3.22 EPS. The company's revenue was up 1.1% on a year-over-year basis. Equities research analysts expect that McDonald's will post 12.84 earnings per share for the current fiscal year.

McDonald's Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This is an increase from McDonald's's previous quarterly dividend of $1.86. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $7.72 dividend on an annualized basis and a yield of 2.8%. McDonald's's payout ratio is currently 58.86%.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: Argus raised its price target to $320 from $310 and reiterated a “buy” rating, signaling confidence in the stock’s prospects. Argus rating
• Neutral Sentiment: McDonald’s is testing value bundles at nearly 2,000 U.S. restaurants, ahead of a planned national value platform in early 2027. The deals may help bring back customers, but the company is still assessing their effect on traffic and orders. McDonald’s value-bundle test
• Neutral Sentiment: Third-quarter profit beat analyst estimates, but revenue missed and U.S. comparable sales declined. That mixed backdrop helps explain why investors are watching for evidence that value promotions can sustain a domestic recovery. Q3 earnings and U.S. traffic
• Negative Sentiment: Consumers have filed a lawsuit alleging McDonald’s labeled McCafé drinks “sugar free” despite some containing as much as 18 grams of sugar. The allegations are unproven, but the case could create legal and reputational risk. McCafé labeling lawsuit
• Negative Sentiment: Freedom Broker cut its rating from “buy” to “hold” and lowered its price target to $298 from $305, adding a more cautious view alongside the recent analyst optimism. Freedom Broker rating change

Institutional Trading of McDonald's

Several institutional investors have recently added to or reduced their stakes in the business. Bernicke Wealth Management Ltd. purchased a new stake in McDonald's during the 3rd quarter worth approximately $353,000. Diversified Trust Co raised its position in shares of McDonald's by 7.3% during the third quarter. Diversified Trust Co now owns 10,219 shares of the fast-food giant's stock worth $2,360,000 after purchasing an additional 692 shares during the period. McElhenny Sheffield Capital Management LLC lifted its position in shares of McDonald's by 3.1% during the 3rd quarter. McElhenny Sheffield Capital Management LLC now owns 1,739 shares of the fast-food giant's stock worth $402,000 after purchasing an additional 53 shares during the last quarter. Patrick Mauro Investment Advisor INC. boosted its position in shares of McDonald's by 17.7% in the 3rd quarter. Patrick Mauro Investment Advisor INC. now owns 36,793 shares of the fast-food giant's stock worth $8,497,000 after purchasing an additional 5,524 shares during the last quarter. Finally, Hamel Associates Inc. increased its position in McDonald's by 4.4% during the third quarter. Hamel Associates Inc. now owns 21,954 shares of the fast-food giant's stock worth $5,070,000 after acquiring an additional 929 shares during the period. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.