Morgan Stanley Lowers McDonald's (NYSE:MCD) Price Target to $334.00

Key Points

• Morgan Stanley trimmed its price target on McDonald's from $335 to $334 and maintained an "equal weight" rating, implying about a 10.03% upside from the current price.
• Analyst sentiment is mixed: MarketBeat shows an average "Hold" with a consensus target of $339.34 (17 Buys, 13 Holds, 2 Sells), suggesting limited analyst-driven upside near term.
• Fundamentals show a recent quarter beat (EPS $3.12 vs. $3.05; revenue $7.01B vs. $6.81B) but shares traded near $303.54; insiders sold about 71,657 shares (~$23.7M) last quarter while institutions own ~70% of the stock.

McDonald's (NYSE:MCD - Get Free Report) had its price objective decreased by analysts at Morgan Stanley from $335.00 to $334.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the fast-food giant's stock. Morgan Stanley's target price indicates a potential upside of 10.03% from the stock's current price.

Other equities research analysts have also issued reports about the stock. Guggenheim dropped their price objective on shares of McDonald's from $325.00 to $320.00 and set a "neutral" rating on the stock in a report on Friday, February 13th. Tigress Financial boosted their price objective on shares of McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a report on Friday, March 6th. Mizuho boosted their price objective on shares of McDonald's from $300.00 to $325.00 and gave the company a "neutral" rating in a report on Friday, February 6th. Jefferies Financial Group boosted their price objective on shares of McDonald's from $360.00 to $375.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Finally, Robert W. Baird set a $335.00 price objective on shares of McDonald's in a report on Thursday, February 12th. Seventeen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $339.34.

McDonald's Stock Down 1.1%

Shares of NYSE MCD traded down $3.40 during trading hours on Tuesday, hitting $303.54. 737,455 shares of the stock were exchanged, compared to its average volume of 3,224,284. The company has a market cap of $215.77 billion, a PE ratio of 25.39, a PEG ratio of 2.81 and a beta of 0.53. The firm has a fifty day moving average price of $319.24 and a 200-day moving average price of $311.95. McDonald's has a 12 month low of $283.47 and a 12 month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, topping the consensus estimate of $3.05 by $0.07. The firm had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.81 billion. McDonald's had a net margin of 31.85% and a negative return on equity of 343.90%. McDonald's's revenue was up 9.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.83 EPS. As a group, equities analysts anticipate that McDonald's will post 13.22 earnings per share for the current fiscal year.

Insider Buying and Selling at McDonald's

In other news, CMO Edith Morgan Flatley sold 4,692 shares of the company's stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $331.00, for a total value of $1,553,052.00. Following the sale, the chief marketing officer directly owned 6,200 shares of the company's stock, valued at $2,052,200. This represents a 43.08% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Christopher J. Kempczinski sold 26,276 shares of the business's stock in a transaction on 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 completion of the transaction, the chief executive officer owned 22,900 shares of the company's stock, valued at approximately $7,638,066. This represents a 53.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 71,657 shares of company stock valued at $23,723,307 over the last quarter. Insiders own 0.26% of the company's stock.

Hedge Funds Weigh In On McDonald's

Several large investors have recently made changes to their positions in the company. AA Financial Advisors LLC lifted its stake in shares of McDonald's by 10.7% in the 1st quarter. AA Financial Advisors LLC now owns 4,199 shares of the fast-food giant's stock valued at $1,305,000 after purchasing an additional 406 shares during the period. Falcon Wealth Planning lifted its stake in shares of McDonald's by 12.7% in the 1st quarter. Falcon Wealth Planning now owns 2,203 shares of the fast-food giant's stock valued at $684,000 after purchasing an additional 249 shares during the period. Grey Ledge Advisors LLC lifted its stake in shares of McDonald's by 4.6% in the 1st quarter. Grey Ledge Advisors LLC now owns 5,706 shares of the fast-food giant's stock valued at $1,773,000 after purchasing an additional 250 shares during the period. Balance Wealth LLC lifted its stake in shares of McDonald's by 3.7% in the 1st quarter. Balance Wealth LLC now owns 1,415 shares of the fast-food giant's stock valued at $440,000 after purchasing an additional 50 shares during the period. Finally, Davidson Trust Co. lifted its stake in shares of McDonald's by 6.3% in the 1st quarter. Davidson Trust Co. now owns 3,887 shares of the fast-food giant's stock valued at $1,208,000 after purchasing an additional 230 shares during the period. 70.29% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting McDonald's

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

• Positive Sentiment: UBS and other analysts view McDonald’s upcoming $3 value menu as a constructive move for traffic and value positioning—this supports revenue resilience and same-store sales if it drives customer frequency. McDonald's $3 menu is about to kick off. Here's why Wall Street is already a fan.
• Neutral Sentiment: Investors are awaiting McDonald’s Q1 earnings; previews expect single‑digit bottom‑line growth, so Q1 results and commentary will be the key near‑term catalyst. What You Need to Know Ahead of McDonald's Earnings Release
• Neutral Sentiment: Analyst consensus remains mixed: brokerages give McDonald’s an average "Hold" rating, reflecting balanced views on growth vs. valuation—this suggests limited analyst-driven upside until clearer data. McDonald's Corporation Given Average Rating of "Hold" by Brokerages
• Negative Sentiment: Goldman Sachs warns of potential near‑term consumer weakness: a softer consumer backdrop would hurt restaurant traffic and discretionary spend, making McDonald’s cyclical metrics more vulnerable. Goldman Sachs warns US consumers could have a challenging few months
• Negative Sentiment: KeyBanc trimmed its price target to $345 (from $354) and flagged a volatile 2026 outlook—lower targets and notes of uncertainty can pressure sentiment even when the rating remains Overweight. KeyBanc Cuts McDonald’s (MCD) Target to $345, Flags Volatile Outlook for 2026
• Negative Sentiment: Operational/brand noise: McDonald’s quietly removed five menu items, prompting customer complaints—while likely immaterial to revenue, negative consumer publicity can dent sentiment in the short term. McDonald’s just axed 5 menu items without warning and fans say it’s ‘absurd’

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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