McDonald's (NYSE:MCD) Sets New 12-Month Low - Time to Sell?

Key Points

• McDonald’s shares fell to a new 52-week low of $233.66, trading below both their 50-day and 200-day moving averages amid consumer pressure and recent analyst target-price cuts.
• Despite the weakness, analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $297.27 target price. Potential catalysts include operating upgrades, a redesigned loyalty program, and the company’s scale and franchise-based model.
• McDonald’s raised its quarterly dividend to $1.93, equivalent to a 3.3% annual yield, while recent earnings topped expectations and revenue grew 3.7% year over year.

McDonald's Corporation (NYSE:MCD - Get Free Report) shares reached a new 52-week low during mid-day trading on Monday. The company traded as low as $233.66 and last traded at $234.3460, with a volume of 1934751 shares changing hands. The stock had previously closed at $236.50.

McDonald's News Roundup

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

• Positive Sentiment: Analysts argue that McDonald’s scale, franchise-based economics, lower valuation, and the planned NEXT operating upgrades—including AI-powered systems—could improve efficiency and support a long-term recovery. McDonald's vs. Starbucks: Which Restaurant Stock Has an Edge Now?
• Positive Sentiment: The company’s dividend status remains attractive to income-oriented investors. Recent coverage says McDonald’s raised its dividend despite share-price weakness, with earnings and cash flow viewed as sufficient to support the payout. Its long record of annual increases may help limit further downside. 3 Dividend Stocks With Higher Yields and Room for More Payout Growth
• Positive Sentiment: A redesigned, tiered loyalty program targeting approximately 150 million infrequent customers, with Uber and Disney+ partnerships, could increase visit frequency and improve customer retention. McDonald's Targets 150 Million Infrequent Guests With Tiered Loyalty Program

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on MCD shares. Mizuho decreased their target price on shares of McDonald's from $300.00 to $290.00 and set a "neutral" rating for the company in a research note on Friday, July 31st. UBS Group set a $260.00 price target on shares of McDonald's in a research note on Thursday. JPMorgan Chase & Co. cut their price objective on shares of McDonald's from $280.00 to $260.00 and set an "overweight" rating on the stock in a report on Thursday. Needham & Company LLC reissued a "buy" rating on shares of McDonald's in a research report on Monday, September 21st. Finally, Weiss Ratings restated a "hold (c)" rating on shares of McDonald's in a research note on Friday, September 18th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, McDonald's has a consensus rating of "Moderate Buy" and a consensus target price of $297.27.

McDonald's Stock Down 0.9%

The stock has a 50 day moving average of $262.23 and a 200 day moving average of $280.40. The firm has a market capitalization of $165.93 billion, a price-to-earnings ratio of 19.04, a P/E/G ratio of 2.56 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts' consensus estimates of $3.32 by $0.06. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%.The company had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. During the same quarter last year, the business posted $3.19 EPS. McDonald's's quarterly revenue was up 3.7% compared to the same quarter last year. Analysts predict that McDonald's Corporation will post 12.86 earnings per share for the current year.

McDonald's Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a $1.93 dividend. This is a boost from McDonald's's previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend is Tuesday, December 1st. McDonald's's dividend payout ratio is presently 60.44%.

Institutional Trading of McDonald's

A number of institutional investors and hedge funds have recently modified their holdings of MCD. State Street Corp raised its stake in McDonald's by 1.8% during the second quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock worth $9,752,921,000 after acquiring an additional 646,675 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in McDonald's by 7.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant's stock worth $1,699,314,000 after acquiring an additional 384,762 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in McDonald's by 0.8% in the fourth quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant's stock valued at $1,614,843,000 after acquiring an additional 40,506 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in McDonald's by 17.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant's stock valued at $1,130,587,000 after acquiring an additional 533,448 shares during the period. Finally, Diamant Asset Management Inc. grew its holdings in shares of McDonald's by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock valued at $806,917,000 after purchasing an additional 2,587,986 shares during the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

About McDonald's

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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