McDonald's Corporation (NYSE:MCD) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on McDonald’s, with 15 buy, 11 hold and one strong-buy rating among 27 firms. The average 12-month price target is $325.88.
• McDonald’s reported quarterly EPS of $3.38, beating estimates by $0.06, while revenue rose 3.7% year over year to $7.10 billion, slightly below expectations.
• The company declared a quarterly dividend of $1.86 per share, equivalent to $7.44 annually and a 2.7% yield. Insiders sold $2.36 million of stock over the past 90 days, while institutional investors own 70.29% of shares.

McDonald's Corporation (NYSE:MCD - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the twenty-seven ratings firms that are currently covering the stock, MarketBeat Ratings reports. Eleven research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $325.8750.

A number of analysts recently weighed in on MCD shares. Tigress Financial increased their price target on shares of McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a research note on Friday, July 17th. Erste Group Bank lowered shares of McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Evercore set a $320.00 target price on shares of McDonald's in a report on Thursday, July 23rd. TD Cowen reiterated a "hold" rating on shares of McDonald's in a research note on Tuesday, August 4th. Finally, BTIG Research reissued a "buy" rating and set a $350.00 price target on shares of McDonald's in a report on Wednesday, August 5th.

Insider Buying and Selling

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 8,348 shares of company stock valued at $2,355,634 over the last ninety days. 0.26% of the stock is owned by insiders.

Hedge Funds Weigh In On McDonald's

Several institutional investors have recently bought and sold shares of the company. Hamilton Point Investment Advisors LLC increased its stake in McDonald's by 1.8% in the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant's stock valued at $535,000 after purchasing an additional 31 shares during the last quarter. Encompass More Asset Management lifted its position in McDonald's by 1.5% during the fourth quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock worth $648,000 after buying an additional 32 shares during the period. Richmond Investment Services LLC boosted its stake in McDonald's by 1.4% in the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant's stock worth $696,000 after buying an additional 32 shares during the last quarter. Papamarkou Wellner Asset Management inc. boosted its stake in McDonald's by 0.4% in the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant's stock worth $2,692,000 after buying an additional 32 shares during the last quarter. Finally, Physician Wealth Advisors Inc. grew its holdings in McDonald's by 1.6% in the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock valued at $642,000 after buying an additional 33 shares during the period. 70.29% of the stock is owned by institutional investors and hedge funds.

More McDonald's News

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

• Positive Sentiment: McDonald’s is emphasizing value through sharper pricing, digital offers and improved franchise execution in the United States. Analysts see the “value reset” as a potential way to rebuild traffic and convert affordability-focused customers into sales growth. Can MCD's Value Reset Turn U.S. Traffic Weakness Into Sales Growth?
• Positive Sentiment: A beverage platform reportedly performing at or above plan in every market launched could provide a new source of sales momentum and potentially support the next McDonald’s stock rally. What Could Power The Next Rally In McDonald's Stock
• Positive Sentiment: Seasonal and promotional launches—including new fall beverages, a returning breakfast item, Hello Kitty-Godzilla Happy Meal toys, and an Xbox gaming partnership—could increase customer visits, digital engagement and limited-time sales. McDonald’s Happy Meal to bring Hello Kitty and Godzilla together
• Neutral Sentiment: Zacks forecasts McDonald’s third-quarter earnings, but the article does not indicate a major change to the company’s established earnings outlook. Zacks Research Forecasts McDonald's Q3 Earnings
• Neutral Sentiment: McDonald’s is adapting menus for regional preferences, including a Shravan menu in India. Such localization may help international relevance but has limited near-term significance for consolidated results. McDonald’s Shravan menu in India
• Negative Sentiment: Food inflation remains a risk, particularly for beef costs. A temporary tariff pause may not materially ease consumer prices or restaurant input pressures, potentially limiting margins and value initiatives. Trump's 90-Day Inflation Band-Aid
• Negative Sentiment: Some customers have criticized McDonald’s new fall iced coffee, raising a modest product-execution and demand risk. The discontinuation of Chicken Selects also highlights ongoing menu and supply-chain decisions, though neither item alone is likely to materially affect earnings. McDonald’s fall iced coffee criticism

McDonald's Trading Down 0.0%

Shares of NYSE MCD opened at $270.84 on Monday. McDonald's has a twelve month low of $260.96 and a twelve month high of $341.75. The stock has a 50 day moving average of $272.35 and a two-hundred day moving average of $293.50. The stock has a market cap of $191.66 billion, a P/E ratio of 22.00, a P/E/G ratio of 3.04 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.06. The business had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The company's revenue was up 3.7% compared to the same quarter last year. During the same period in the prior year, the company earned $3.19 earnings per share. As a group, research analysts predict that McDonald's will post 12.88 earnings per share for the current year.

McDonald's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald's's dividend payout ratio is currently 60.44%.

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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