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

Key Points

• McDonald’s has a “Moderate Buy” consensus among 27 analysts, with 15 buys and 12 holds; the average 12-month price target is $333.32 versus the stock’s recent price near $271.
• Recent quarterly results exceeded expectations, with EPS of $2.83 and revenue of $6.52 billion, while the company reaffirmed its quarterly dividend of $1.86 per share, representing a 2.7% yield.
• Investor concerns include slowing same-store sales, rising beef costs, digital-sales execution and cautious analyst forecasts; insiders also sold 8,348 shares worth about $2.36 million in the last quarter.

McDonald's Corporation (NYSE:MCD - Get Free Report) has earned an average recommendation of "Moderate Buy" from the twenty-seven research firms that are covering the company, Marketbeat reports. Twelve research analysts have rated the stock with a hold recommendation and fifteen have assigned a buy recommendation to the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $333.32.

MCD has been the topic of several research analyst reports. Weiss Ratings cut shares of McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. Morgan Stanley reduced their target price on McDonald's from $331.00 to $322.00 and set an "equal weight" rating for the company in a report on Wednesday, July 15th. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a research report on Friday, June 12th. UBS Group lowered their price target on McDonald's from $365.00 to $340.00 and set a "buy" rating on the stock in a report on Monday. Finally, Robert W. Baird set a $305.00 price objective on McDonald's in a research note on Thursday, May 7th.

Insider Transactions at McDonald's

In other news, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction dated 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 transaction, the insider owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,348 shares of company stock worth $2,355,634 in the last quarter. 0.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in MCD. Hamilton Point Investment Advisors LLC increased its stake in shares of 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 worth $535,000 after acquiring an additional 31 shares during the last quarter. Encompass More Asset Management grew its stake in McDonald's by 1.5% in the fourth quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock valued at $648,000 after purchasing an additional 32 shares in the last quarter. Richmond Investment Services LLC grew its stake in McDonald's by 1.4% in the fourth quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant's stock valued at $696,000 after purchasing an additional 32 shares in the last quarter. Papamarkou Wellner Asset Management inc. increased its position 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 purchasing an additional 32 shares during the last quarter. Finally, Physician Wealth Advisors Inc. increased its position 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 worth $642,000 after purchasing an additional 33 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

Key Headlines Impacting McDonald's

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

• Positive Sentiment: McDonald’s continues to offer an attractive income profile after affirming its quarterly dividend of $1.86 per share, payable Sept. 16 to shareholders of record Sept. 1. The company has increased its dividend for approximately 50 consecutive years. McDonald's Faces Digital And Sales Concerns, Is The Stock Fully Valued?
• Positive Sentiment: Despite the recent weakness, Wall Street’s average price targets reportedly remain well above the current market price, suggesting potential upside if sales stabilize and the company executes on its strategy. McDonald's, Oracle, and Uber Are Near 52-Week Lows
• Neutral Sentiment: McDonald’s is scheduled to report earnings on Aug. 4. Analysts expect full-year EPS of about $12.86, while recent coverage suggests earnings growth remains possible but does not identify a strong setup for a near-term earnings beat. McDonald's Earnings Expected to Grow
• Negative Sentiment: RBC expects McDonald’s same-store-sales growth to slow in the second and third quarters, raising concerns about consumer demand and the company’s ability to sustain traffic and pricing momentum. McDonald's Same-Store-Sales Growth Seen Slowing
• Negative Sentiment: Erste Group Bank trimmed its FY2026 EPS forecast to $12.92 from $12.98 and its FY2027 estimate to $14.15 from $14.19, maintaining a “Hold” rating. UBS has also issued a pessimistic forecast, adding to cautious sentiment. UBS Group Issues Pessimistic Forecast for McDonald's
• Negative Sentiment: Rising beef prices are weighing on investor sentiment and could pressure restaurant margins. Additional concerns include digital-sales execution and whether McDonald’s valuation is justified given its weaker recent performance. McDonald's Fell as Rising Beef Prices Weighed on Sentiment

McDonald's Trading Down 0.6%

MCD stock opened at $271.34 on Thursday. McDonald's has a one year low of $260.96 and a one year high of $341.75. The firm has a market capitalization of $192.79 billion, a PE ratio of 22.37, a P/E/G ratio of 2.93 and a beta of 0.41. The firm has a 50-day moving average of $275.42 and a two-hundred day moving average of $298.15.

McDonald's (NYSE:MCD - Get Free Report) last released its 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. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period last year, the firm posted $2.67 earnings per share. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. On average, equities research analysts anticipate that McDonald's will post 12.86 earnings per share for the current year.

McDonald's Dividend Announcement

The firm also recently announced 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. This represents a $7.44 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald's's payout ratio is 61.34%.

McDonald's Company Profile

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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