McDonald's (NYSE:MCD) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup analysts have raised McDonald's price target from $373.00 to $381.00, indicating a potential upside of 24.80% from its previous close.
• McDonald's reported earnings of $3.19 EPS for the last quarter, surpassing analysts' expectations of $3.15, alongside a revenue of $6.84 billion.
• Currently, 11 analysts have rated McDonald's stock as a "Buy," while two analysts gave it a "Sell," reflecting varied investor sentiment.

McDonald's (NYSE:MCD - Get Free Report) had its price target lifted by stock analysts at Citigroup from $373.00 to $381.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the fast-food giant's stock. Citigroup's target price would suggest a potential upside of 24.80% from the company's previous close.

Several other brokerages have also issued reports on MCD. Truist Financial raised their target price on McDonald's from $356.00 to $360.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. BMO Capital Markets raised their target price on McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research report on Thursday, September 4th. Barclays raised their target price on McDonald's from $355.00 to $360.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Melius started coverage on McDonald's in a research report on Monday, July 14th. They set a "sell" rating and a $250.00 target price for the company. Finally, Loop Capital lowered McDonald's from a "buy" rating to a "hold" rating and lowered their target price for the stock from $346.00 to $315.00 in a research report on Friday, June 6th. Eleven equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $325.86.

McDonald's Stock Up 0.7%

Shares of NYSE MCD traded up $1.99 during midday trading on Wednesday, reaching $305.28. 439,282 shares of the company were exchanged, compared to its average volume of 3,521,733. The stock's 50-day moving average price is $305.73 and its 200-day moving average price is $306.50. The stock has a market cap of $217.85 billion, a P/E ratio of 26.16, a PEG ratio of 3.08 and a beta of 0.50. McDonald's has a one year low of $276.53 and a one year high of $326.32.

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 analysts' consensus estimates of $3.15 by $0.04. The company had revenue of $6.84 billion for the quarter, compared to analyst estimates of $6.68 billion. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. McDonald's's revenue was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.97 earnings per share. On average, equities research analysts anticipate that McDonald's will post 12.25 EPS for the current year.

Insider Activity at McDonald's

In other news, EVP Jonathan Banner sold 1,000 shares of the company's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total transaction of $310,000.00. Following the transaction, the executive vice president owned 99 shares in the company, valued at approximately $30,690. This represents a 90.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Joseph M. Erlinger sold 939 shares of the company's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total transaction of $281,221.11. Following the transaction, the insider owned 9,283 shares in the company, valued at $2,780,165.67. This represents a 9.19% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 8,341 shares of company stock worth $2,544,327 over the last three months. 0.25% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On McDonald's

Hedge funds and other institutional investors have recently made changes to their positions in the business. Nova Wealth Management Inc. bought a new stake in shares of McDonald's during the first quarter worth about $26,000. HFM Investment Advisors LLC bought a new stake in shares of McDonald's during the first quarter worth about $26,000. Decker Retirement Planning Inc. increased its position in shares of McDonald's by 142.9% during the second quarter. Decker Retirement Planning Inc. now owns 85 shares of the fast-food giant's stock worth $25,000 after acquiring an additional 50 shares in the last quarter. Legacy Investment Solutions LLC bought a new stake in McDonald's in the 2nd quarter worth about $25,000. Finally, Mascagni Wealth Management Inc. bought a new stake in McDonald's in the 4th quarter worth about $25,000. 70.29% of the stock is owned by institutional investors.

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.

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