McDonald's' (MCD) "Outperform" Rating Reaffirmed at BMO Capital Markets

Key Points

• BMO Capital Markets raised its price target for McDonald’s stock from $345.00 to $350.00, indicating a potential upside of 13.83%.
• As of now, McDonald's has a consensus rating of "Hold" from analysts, with price targets ranging between $250.00 and $350.00.
• The company's recent quarterly earnings beat expectations with $3.19 EPS reported, compared to a consensus estimate of $3.15 EPS, along with a 5.4% year-over-year revenue increase.

McDonald's (NYSE:MCD - Get Free Report)'s stock had its "outperform" rating reiterated by BMO Capital Markets in a research report issued to clients and investors on Thursday, MarketBeat reports. They currently have a $350.00 price objective on the fast-food giant's stock, up from their prior price objective of $345.00. BMO Capital Markets' price objective points to a potential upside of 13.80% from the company's current price.

A number of other analysts have also issued reports on the stock. TD Securities reiterated a "hold" rating and set a $305.00 price target on shares of McDonald's in a research note on Thursday, June 5th. Redburn Atlantic reissued a "sell" rating and issued a $260.00 price objective (down from $319.00) on shares of McDonald's in a report on Tuesday, June 10th. BTIG Research restated a "neutral" rating on shares of McDonald's in a research note on Tuesday, April 22nd. Piper Sandler lifted their price objective on McDonald's from $292.00 to $314.00 and gave the company a "neutral" rating in a report on Friday, May 2nd. Finally, Morgan Stanley upped their target price on shares of McDonald's from $324.00 to $326.00 and gave the stock an "equal weight" rating in a research report on Monday, July 14th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and thirteen have issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $326.00.

McDonald's Stock Down 0.0%

Shares of MCD traded down $0.11 during mid-day trading on Thursday, reaching $307.55. The company had a trading volume of 2,670,600 shares, compared to its average volume of 3,620,364. The stock has a 50 day moving average of $298.81 and a two-hundred day moving average of $303.99. McDonald's has a 52-week low of $265.33 and a 52-week high of $326.32. The stock has a market capitalization of $219.91 billion, a P/E ratio of 27.14, a PEG ratio of 3.13 and a beta of 0.52.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, topping the consensus estimate of $3.15 by $0.04. The firm had revenue of $6.84 billion during the quarter, compared to analysts' expectations of $6.68 billion. McDonald's had a negative return on equity of 195.27% and a net margin of 31.75%. The firm's revenue for the quarter was up 5.4% on a year-over-year basis. During the same period in the previous year, the business earned $2.97 earnings per share. On average, sell-side analysts expect that McDonald's will post 12.25 earnings per share for the current year.

Insider Activity at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,487 shares of the business's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total value of $770,970.00. Following the completion of the transaction, the executive vice president directly owned 8,754 shares of the company's stock, valued at approximately $2,713,740. The trade was a 22.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Joseph M. Erlinger sold 939 shares of the business's stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total transaction of $281,221.11. Following the completion of the transaction, the insider owned 9,283 shares of the company's stock, valued at $2,780,165.67. This trade represents a 9.19% decrease in their position. The disclosure for this sale can be found here. Insiders sold 7,280 shares of company stock valued at $2,215,178 in the last three months. Corporate insiders own 0.25% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in MCD. WealthPlan Investment Management LLC lifted its stake in McDonald's by 0.9% in the first quarter. WealthPlan Investment Management LLC now owns 3,630 shares of the fast-food giant's stock worth $1,134,000 after acquiring an additional 32 shares during the period. Granite Bay Wealth Management LLC increased its holdings in shares of McDonald's by 3.5% during the 1st quarter. Granite Bay Wealth Management LLC now owns 988 shares of the fast-food giant's stock valued at $309,000 after purchasing an additional 33 shares in the last quarter. CVA Family Office LLC grew its position in shares of McDonald's by 1.9% in the first quarter. CVA Family Office LLC now owns 1,793 shares of the fast-food giant's stock valued at $560,000 after purchasing an additional 33 shares during the period. Consilium Wealth Advisory LLC raised its holdings in shares of McDonald's by 2.5% during the first quarter. Consilium Wealth Advisory LLC now owns 1,334 shares of the fast-food giant's stock valued at $417,000 after acquiring an additional 33 shares during the last quarter. Finally, Security Financial Services INC. grew its holdings in shares of McDonald's by 0.7% during the first quarter. Security Financial Services INC. now owns 5,043 shares of the fast-food giant's stock worth $1,575,000 after buying an additional 33 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Company Profile

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.