Zacks Research Analysts Cut Earnings Estimates for McDonald's Co. (NYSE:MCD)

McDonald's Co. (NYSE:MCD - Free Report) - Research analysts at Zacks Research lowered their Q2 2024 earnings per share (EPS) estimates for shares of McDonald's in a note issued to investors on Tuesday, April 16th. Zacks Research analyst H. Ray now forecasts that the fast-food giant will post earnings per share of $3.17 for the quarter, down from their prior forecast of $3.22. The consensus estimate for McDonald's' current full-year earnings is $12.34 per share. Zacks Research also issued estimates for McDonald's' Q3 2024 earnings at $3.32 EPS, FY2024 earnings at $12.25 EPS, Q1 2025 earnings at $2.99 EPS, Q2 2025 earnings at $3.33 EPS, Q3 2025 earnings at $3.47 EPS, Q4 2025 earnings at $3.32 EPS and FY2025 earnings at $13.11 EPS.

Several other research firms have also weighed in on MCD. HSBC assumed coverage on McDonald's in a report on Wednesday, December 20th. They set a "buy" rating and a $317.00 target price on the stock. Royal Bank of Canada lowered their price target on shares of McDonald's from $340.00 to $335.00 and set an "outperform" rating for the company in a report on Tuesday, February 6th. Erste Group Bank restated a "hold" rating on shares of McDonald's in a report on Wednesday, April 3rd. Bank of America raised their price target on shares of McDonald's from $291.00 to $341.00 and gave the company a "neutral" rating in a research report on Monday, January 29th. Finally, Evercore ISI restated an "outperform" rating and set a $330.00 price target on shares of McDonald's in a research note on Wednesday, March 27th. Nine equities research analysts have rated the stock with a hold rating and twenty-two have assigned a buy rating to the company. According to MarketBeat.com, McDonald's has a consensus rating of "Moderate Buy" and an average price target of $319.72.

McDonald's Price Performance

Shares of MCD traded up $1.03 during mid-day trading on Thursday, reaching $270.98. The company had a trading volume of 3,297,671 shares, compared to its average volume of 3,248,558. The company's 50-day moving average is $283.44 and its 200-day moving average is $280.62. McDonald's has a twelve month low of $245.73 and a twelve month high of $302.39. The company has a market capitalization of $195.38 billion, a P/E ratio of 23.42, a P/E/G ratio of 2.88 and a beta of 0.71.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Monday, February 5th. The fast-food giant reported $2.95 earnings per share for the quarter, beating analysts' consensus estimates of $2.83 by $0.12. McDonald's had a negative return on equity of 171.96% and a net margin of 33.22%. The business had revenue of $6.41 billion for the quarter, compared to the consensus estimate of $6.45 billion. During the same quarter in the previous year, the company posted $2.59 earnings per share. McDonald's's revenue for the quarter was up 8.1% compared to the same quarter last year.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 15th. Investors of record on Friday, March 1st were paid a dividend of $1.67 per share. This represents a $6.68 annualized dividend and a yield of 2.47%. The ex-dividend date of this dividend was Thursday, February 29th. McDonald's's payout ratio is currently 57.74%.

Insider Buying and Selling at McDonald's

In related news, insider Joseph M. Erlinger sold 1,099 shares of the stock in a transaction on Friday, March 22nd. The shares were sold at an average price of $284.38, for a total transaction of $312,533.62. Following the completion of the sale, the insider now owns 18,075 shares in the company, valued at approximately $5,140,168.50. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.27% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Shulman DeMeo Asset Management LLC boosted its holdings in shares of McDonald's by 12.2% during the fourth quarter. Shulman DeMeo Asset Management LLC now owns 1,051 shares of the fast-food giant's stock valued at $312,000 after acquiring an additional 114 shares during the period. Beaumont Financial Advisors LLC grew its stake in shares of McDonald's by 0.6% in the 3rd quarter. Beaumont Financial Advisors LLC now owns 80,441 shares of the fast-food giant's stock valued at $21,191,000 after buying an additional 450 shares in the last quarter. First National Bank of Mount Dora Trust Investment Services boosted its position in McDonald's by 2.8% during the fourth quarter. First National Bank of Mount Dora Trust Investment Services now owns 11,025 shares of the fast-food giant's stock worth $3,269,000 after purchasing an additional 301 shares during the period. Mengis Capital Management Inc. boosted its position in McDonald's by 7.9% during the third quarter. Mengis Capital Management Inc. now owns 4,522 shares of the fast-food giant's stock worth $1,191,000 after purchasing an additional 331 shares during the period. Finally, Garden State Investment Advisory Services LLC grew its stake in shares of McDonald's by 7.7% in the third quarter. Garden State Investment Advisory Services LLC now owns 1,227 shares of the fast-food giant's stock worth $323,000 after acquiring an additional 88 shares during the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

McDonald's Company Profile

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.