McDonald's (NYSE:MCD) Earns Buy Rating from BTIG Research

Key Points

• BTIG Research reaffirmed its “buy” rating on McDonald’s, setting a $350 price target that implies approximately 30.4% upside from the stock’s current price.
• McDonald’s reported quarterly EPS of $3.38, exceeding the $3.32 consensus estimate, while revenue increased 3.7% year over year to $7.10 billion, slightly below expectations.
• Analyst sentiment remains favorable, with 16 buy ratings and 12 holds producing a “Moderate Buy” consensus and an average price target of $330.36; however, U.S. comparable sales growth slowed to 0.8%, highlighting ongoing domestic traffic and value-strategy challenges.

McDonald's (NYSE:MCD - Get Free Report)'s stock had its "buy" rating reissued by stock analysts at BTIG Research in a report released on Wednesday,Benzinga reports. They presently have a $350.00 price objective on the fast-food giant's stock. BTIG Research's price objective indicates a potential upside of 30.43% from the stock's current price.

Several other equities research analysts have also recently weighed in on MCD. Citigroup cut their price target on shares of McDonald's from $375.00 to $335.00 and set a "buy" rating on the stock in a report on Wednesday, July 15th. Royal Bank Of Canada reaffirmed a "sector perform" rating on shares of McDonald's in a research note on Tuesday, July 28th. Morgan Stanley cut their target price on McDonald's from $331.00 to $322.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 15th. Tigress Financial boosted their price target on McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a report on Friday, July 17th. Finally, Weiss Ratings lowered McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. Sixteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, McDonald's presently has a consensus rating of "Moderate Buy" and a consensus price target of $330.36.

McDonald's Stock Performance

Shares of MCD stock opened at $268.35 on Wednesday. The company has a market capitalization of $190.66 billion, a P/E ratio of 22.12, a PEG ratio of 2.85 and a beta of 0.41. McDonald's has a fifty-two week low of $260.96 and a fifty-two week high of $341.75. The stock has a 50 day moving average price of $274.32 and a two-hundred day moving average price of $297.05.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $7.10 billion for the quarter, compared to analysts' expectations of $7.13 billion. During the same quarter last year, the business earned $3.19 earnings per share. The business's revenue was up 3.7% on a year-over-year basis. As a group, equities analysts predict that McDonald's will post 12.85 earnings per share for the current year.

Insider Activity at McDonald's

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

Hedge Funds Weigh In On McDonald's

Several institutional investors and hedge funds have recently added to or reduced their stakes in MCD. Your Advocates Ltd. LLP purchased a new position in McDonald's during the 4th quarter valued at about $27,000. IFC & Insurance Marketing Inc. purchased a new stake in McDonald's in the fourth quarter worth about $29,000. Abound Financial LLC purchased a new stake in McDonald's in the fourth quarter worth about $30,000. Purpose Unlimited Inc. bought a new position in shares of McDonald's during the fourth quarter valued at approximately $31,000. Finally, DecisionPoint Financial LLC increased its stake in shares of McDonald's by 1,616.7% during the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after purchasing an additional 97 shares in the last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s reported adjusted earnings of $3.38 per share, ahead of the $3.32 analyst consensus and up from $3.19 a year earlier. Revenue rose 3.7% to $7.10 billion, while stronger franchised margins and record restaurant margins supported profits despite revenue coming in slightly below expectations. McDonald's Q2 Earnings Surpass Estimates
• Positive Sentiment: Comparable sales increased across all three operating segments, with international markets providing important support as the U.S. business slowed. Management said the company sees an opportunity to improve value, service and food quality in the domestic market. McDonald’s posts strong second quarter profit
• Neutral Sentiment: McDonald’s appointed longtime executive Skye Anderson as president of McDonald’s USA, replacing Joe Erlinger. Anderson will oversee nearly 14,000 U.S. restaurants and is tasked with restoring traffic and improving execution; the change offers a potential turnaround catalyst but also highlights the urgency of the domestic slowdown. McDonald’s names Skye Anderson as U.S. president
• Negative Sentiment: U.S. comparable sales rose only 0.8%, down from 2.5% a year earlier and below expectations. Traffic weakened as lower-income consumers remained under pressure from elevated prices and gas costs. McDonald’s US sales disappoint
• Negative Sentiment: The company acknowledged that its value strategy became overly complicated: too many simultaneous promotions and reduced digital deal activity confused customers and employees, failing to bring back enough loyal diners. McDonald’s also delayed its goal of reaching 50,000 global restaurants from 2027 to 2028, signaling a more cautious growth outlook. McDonald’s admits its value meals have become too confusing

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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