McDonald's (NYSE:MCD) Downgraded by Erste Group Bank to Hold

Key Points

• Erste Group Bank downgraded McDonald's from a "buy" to a "hold", and analysts' ratings are mixed overall (16 Buy, 15 Hold, 1 Sell) with a consensus target price of $340.93.
• McDonald's beat quarterly estimates with $3.12 EPS (vs. $3.05) and $7.01 billion in revenue (vs. $6.81 billion), but the stock fell to $295.97—trading below its 50‑day ($317.15) and 200‑day ($312.06) moving averages.
• Significant insider selling occurred in February—CEO and CMO sales contributed to insiders offloading 71,990 shares (~$23.8 million) over the past 90 days, reducing their ownership stakes.

McDonald's (NYSE:MCD - Get Free Report) was downgraded by research analysts at Erste Group Bank from a "buy" rating to a "hold" rating in a report issued on Monday,Finviz reports.

MCD has been the subject of a number of other reports. Mizuho increased their price target on McDonald's from $300.00 to $325.00 and gave the company a "neutral" rating in a research note on Friday, February 6th. TD Cowen reiterated a "hold" rating and issued a $320.00 target price on shares of McDonald's in a report on Thursday, February 12th. JPMorgan Chase & Co. lifted their price target on shares of McDonald's from $305.00 to $325.00 and gave the stock an "overweight" rating in a research report on Tuesday, February 24th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $340.00 price objective on shares of McDonald's in a research note on Thursday, February 12th. Finally, Royal Bank Of Canada upped their price target on shares of McDonald's from $320.00 to $330.00 and gave the stock a "sector perform" rating in a research note on Thursday, February 12th. Sixteen equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $340.93.

McDonald's Price Performance

Shares of MCD stock traded down $3.39 during midday trading on Monday, reaching $295.97. 362,046 shares of the company traded hands, compared to its average volume of 3,211,360. McDonald's has a 1-year low of $283.47 and a 1-year high of $341.75. The firm has a market cap of $210.39 billion, a PE ratio of 24.82, a price-to-earnings-growth ratio of 2.71 and a beta of 0.53. The firm's 50 day simple moving average is $317.15 and its two-hundred day simple moving average is $312.06.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share for the quarter, beating analysts' consensus estimates of $3.05 by $0.07. The business had revenue of $7.01 billion during the quarter, compared to analysts' expectations of $6.81 billion. McDonald's had a negative return on equity of 343.90% and a net margin of 31.85%.The business's revenue for the quarter was up 9.7% on a year-over-year basis. During the same quarter last year, the business posted $2.83 earnings per share. As a group, research analysts anticipate that McDonald's will post 13.21 earnings per share for the current fiscal year.

Insider Buying and Selling

In other McDonald's news, CMO Edith Morgan Flatley sold 4,692 shares of the stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $331.00, for a total transaction of $1,553,052.00. Following the completion of the transaction, the chief marketing officer directly owned 6,200 shares in the company, valued at $2,052,200. This represents a 43.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Christopher J. Kempczinski sold 26,276 shares of McDonald's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $333.54, for a total transaction of $8,764,097.04. Following the transaction, the chief executive officer directly owned 22,900 shares of the company's stock, valued at $7,638,066. This represents a 53.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 71,990 shares of company stock valued at $23,824,113. 0.26% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Evergreen Private Wealth LLC lifted its holdings in McDonald's by 162.5% in the third quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant's stock valued at $26,000 after buying an additional 52 shares during the period. Your Advocates Ltd. LLP bought a new position in McDonald's during the fourth quarter worth about $27,000. Park Place Capital Corp grew its position in shares of McDonald's by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock worth $28,000 after buying an additional 45 shares during the period. IFC & Insurance Marketing Inc. bought a new position in McDonald's during the 4th quarter worth approximately $29,000. Finally, Abound Financial LLC bought a new stake in McDonald's in the fourth quarter valued at approximately $30,000. Institutional investors own 70.29% of the company's stock.

McDonald's News Summary

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

• Positive Sentiment: Major brand collaboration and toys are driving marketing momentum and likely short-term traffic and AUV lift: McDonald’s launched a high-profile “Stranger Things” Happy Meal promotion that’s getting wide coverage and nostalgic consumer buzz. McDonald's launches ‘Stranger Things' Happy Meal
• Positive Sentiment: Repeat coverage of the tie‑in across outlets reinforces national attention and free marketing, supporting traffic and customer frequency. TheStreet - Stranger Things Happy Meal
• Positive Sentiment: Institutional buying: Advisors Capital Management increased its MCD stake, signaling continued confidence from some money managers and providing incremental demand for the shares. Advisors Capital raises holdings
• Positive Sentiment: Analyst/feature optimism: A bullish retail piece ranks MCD among attractive low‑risk, high‑growth stocks, highlighting McDonald’s data/real‑estate and AI investments as drivers of longer-term margin and growth visibility. Yahoo Finance - MCD low risk high growth
• Neutral Sentiment: Menu and product tweaks (secret menu talk, protein badges, “best burger” writeups, breakfast ordering tips) are generating consumer interest and may modestly affect mix or check size but are unlikely to move fundamentals alone. MSN - secret menu
• Neutral Sentiment: Consumer-interest features and human-interest pieces (e.g., CEO’s quirky topping story, breakfast hacks) raise brand engagement but have limited investor impact. Yahoo - CEO topping story
• Negative Sentiment: Cost pressure and margin risk: reporting notes rising food costs and a tougher environment for quick‑service sales; that backdrop means promotions and pricing moves will be key to sustain traffic and margins. TheStreet - operating environment
• Negative Sentiment: Customer-fee experiment could weigh on traffic: McDonald’s is testing a $3.50 fee (reporting indicates tests in some locations) intended to offset rising costs — a risk to transaction counts and consumer sentiment if rolled out broadly. MSN - $3.50 fee test

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.

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.