McDonald's Corporation (NYSE:MCD) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• McDonald’s has a consensus rating of “Moderate Buy” from 32 analysts, with 17 buy ratings, 14 holds, and 1 sell. The average 12-month price target is about $334.45, above the recent share price.
• The company’s latest quarterly results beat expectations, with EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion versus $6.47 billion expected. Revenue rose 9.4% year over year, and analysts now expect full-year EPS of 12.96.
• Despite solid earnings, the stock has been under pressure, trading near its 1-year low and below both its 50-day and 200-day moving averages. The article also notes insider selling and investor concern about margins and broader consumer spending pressures.

Shares of McDonald's Corporation (NYSE:MCD - Get Free Report) have received a consensus rating of "Moderate Buy" from the thirty-two research firms that are currently covering the company, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, fourteen have given a hold recommendation and seventeen have given a buy recommendation to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $334.4483.

A number of equities analysts recently commented on MCD shares. Evercore set a $350.00 target price on McDonald's in a report on Friday, May 8th. Barclays dropped their target price on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. KeyCorp decreased their price target on shares of McDonald's from $345.00 to $330.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. TD Cowen decreased their price target on shares of McDonald's from $330.00 to $300.00 and set a "hold" rating for the company in a research note on Thursday, May 7th. Finally, Jefferies Financial Group boosted their price objective on shares of McDonald's from $360.00 to $375.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th.

McDonald's Price Performance

Shares of MCD stock opened at $276.42 on Friday. The business has a 50-day moving average of $304.30 and a 200 day moving average of $310.02. The stock has a market capitalization of $196.40 billion, a PE ratio of 22.79, a P/E/G ratio of 2.73 and a beta of 0.43. McDonald's has a 1-year low of $271.98 and a 1-year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping the consensus estimate of $2.74 by $0.09. The company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The firm's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.67 EPS. Analysts anticipate that McDonald's will post 12.96 EPS for the current year.

Insider Buying and Selling at McDonald's

In other news, EVP Jonathan Banner sold 6,201 shares of the stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the sale, the executive vice president directly owned 2,291 shares of the company's stock, valued at $763,567.39. This represents a 73.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Joseph M. Erlinger sold 333 shares of the stock in a transaction dated Thursday, April 23rd. The stock was sold at an average price of $302.72, for a total transaction of $100,805.76. Following the sale, the insider directly owned 8,067 shares in the company, valued at approximately $2,442,042.24. The trade was a 3.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 12,119 shares of company stock worth $3,945,973. 0.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Your Advocates Ltd. LLP acquired a new stake in McDonald's in the 4th quarter valued at about $27,000. Park Place Capital Corp boosted its position in McDonald's by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after buying an additional 45 shares during the period. IFC & Insurance Marketing Inc. purchased a new position in McDonald's in the 4th quarter valued at approximately $29,000. Abound Financial LLC purchased a new stake in shares of McDonald's during the 4th quarter worth $30,000. Finally, Purpose Unlimited Inc. purchased a new stake in shares of McDonald's during the 4th quarter worth $31,000. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's News Roundup

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

• Positive Sentiment: Several analysts and market commentators argue that McDonald’s looks oversold and inexpensive relative to its historical valuation, with strong fundamentals and long-term growth prospects potentially supporting a rebound. McDonald's Is the Cheapest It’s Been in Years—Does That Make It a Buy?
• Positive Sentiment: McDonald’s landed a major naming-rights deal for the Chicago Fire stadium, which adds brand visibility and reinforces the company’s deep marketing reach. McDonald's Lands Naming Rights Deal for $750 Million Chicago Fire Stadium
• Neutral Sentiment: McDonald’s remains a widely watched dividend stalwart, with its long record of shareholder payouts keeping it on income investors’ radar. Don’t Look Now, But 4 Blue-Chip Giants Could Be the Newest Dividend Kings
• Neutral Sentiment: News coverage also highlights that McDonald’s is a trending stock and a subject of debate among investors, but this mostly reflects attention rather than a clear new catalyst. McDonald's Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Attention is centered on weaker U.S. company-run restaurant margins, with investors worried about pricing pressure, cost inflation, and the ownership mix affecting profitability. McDonald's Company-Run Margins Draw Focus: Can Ownership Mix Help?
• Negative Sentiment: Commentary from Jim Cramer and others points to the stock’s recent weakness, with concerns that McDonald’s has been “breaking down” despite being a defensive name. Jim Cramer on McDonald’s: “QSR I Think Is the Better”
• Negative Sentiment: Broader consumer cost pressures, including rising restaurant prices and higher gas prices, may weigh on traffic and spending at quick-service restaurants like McDonald’s. Grocery and Restaurant Prices Post Biggest Jump Since 2022

About McDonald's

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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