McDonald's (NYSE:MCD) Share Price Breaks Below 200-Day Moving Average - Time to Sell?

Key Points

• McDonald’s shares fell below their 200-day moving average, trading as low as $274.45 versus the $282.16 average, and were last quoted at $275.30.
• Analyst sentiment remains broadly positive: the consensus rating is Moderate Buy, with an average price target of $297.82, though recent target changes were mixed.
• Quarterly EPS of $3.57 topped estimates, but revenue of $7.16 billion fell short; the company also raised its quarterly dividend from $1.86 to $1.93 per share.

McDonald's Corporation (NYSE:MCD - Get Free Report)'s share price passed below its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $282.16 and traded as low as $274.45. McDonald's shares last traded at $275.3020, with a volume of 6,856,754 shares trading hands.

Latest McDonald's News

Here's some of the latest news about MCD:

• Positive Sentiment: McDonald’s and Uber are expanding their delivery and loyalty partnership across 14 markets, including the U.S. and U.K. The effort could increase delivery orders, improve customer engagement and generate incremental sales. McDonald’s and Uber expand delivery and loyalty tie-up
• Positive Sentiment: McDonald’s is rolling out Pokémon Happy Meals and bringing back a popular holiday menu item. These promotions could attract customers and support near-term traffic, although their financial impact is uncertain. McDonald’s rolls out Pokémon Happy Meal
• Neutral Sentiment: In Japan, new chicken sandwiches reportedly sold so well that the company pulled them. Strong demand is encouraging, but the item’s unavailability could limit sales until supply catches up. McDonald’s Japan pulls new chicken sandwiches after they sell too well

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on MCD. HC Wainwright set a $250.00 price objective on shares of McDonald's in a research report on Friday, September 25th. Citigroup upped their price target on McDonald's from $295.00 to $315.00 and gave the stock a "buy" rating in a research note on Thursday, November 5th. Deutsche Bank lowered their price target on McDonald's from $325.00 to $300.00 and set a "buy" rating for the company in a research report on Monday, September 14th. Rothschild & Co Redburn lowered their price target on McDonald's from $306.00 to $285.00 in a research report on Wednesday, August 26th. Finally, Gordon Haskett cut their price objective on McDonald's from $315.00 to $285.00 and set a "buy" rating on the stock in a report on Thursday, September 24th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, McDonald's presently has a consensus rating of "Moderate Buy" and an average target price of $297.82.

McDonald's Stock Down 2.4%

The stock has a market cap of $194.30 billion, a price-to-earnings ratio of 21.78, a PEG ratio of 3.26 and a beta of 0.42. The business's fifty day moving average is $249.73 and its two-hundred day moving average is $282.16.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.38 by $0.19. McDonald's had a net margin of 32.38% and a negative return on equity of 826.29%. The company had revenue of $7.16 billion for the quarter, compared to analyst estimates of $7.28 billion. During the same period in the prior year, the business earned $3.22 EPS. The firm's quarterly revenue was up 1.1% on a year-over-year basis. As a group, sell-side analysts expect that McDonald's Corporation will post 12.91 earnings per share for the current year.

McDonald's Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This is an increase from McDonald's's previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend is Tuesday, December 1st. McDonald's's dividend payout ratio is currently 61.08%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. State Street Corp increased its holdings in McDonald's by 1.8% during the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant's stock worth $9,752,921,000 after purchasing an additional 646,675 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of McDonald's in the 2nd quarter valued at about $1,359,276,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of McDonald's by 17.2% in the 1st 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 buying an additional 533,448 shares during the period. Swiss National Bank boosted its stake in shares of McDonald's by 6.9% in the 1st quarter. Swiss National Bank now owns 2,089,980 shares of the fast-food giant's stock valued at $649,545,000 after buying an additional 134,480 shares during the period. Finally, Dimensional Fund Advisors LP grew its position in shares of McDonald's by 3.4% during the first quarter. Dimensional Fund Advisors LP now owns 1,909,321 shares of the fast-food giant's stock worth $593,366,000 after buying an additional 62,562 shares in the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald's Company Profile

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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