McDonald's (NYSE:MCD) Stock Price Down 1.7% - Should You Sell?

Key Points

• McDonald’s shares fell 1.7% to about $248.57 on elevated trading volume, remaining below both their 50-day and 200-day moving averages.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $317.91, although several firms recently lowered targets and Jefferies cited the need for clearer evidence of a sales recovery.
• The company is focusing on menu innovation, restaurant remodels, digital ordering and delivery growth, but faces execution challenges and potential margin pressure from value promotions and higher operating costs.

McDonald's Corporation (NYSE:MCD - Get Free Report) traded down 1.7% during trading on Wednesday . The stock traded as low as $247.83 and last traded at $248.5720. 7,105,765 shares changed hands during mid-day trading, an increase of 79% from the average daily volume of 3,971,746 shares. The stock had previously closed at $252.78.

McDonald's News Roundup

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

• Positive Sentiment: BTIG Research reaffirmed its Buy rating and set a $350 price target, implying substantial upside from recent levels. The firm’s bullish view supports the argument that McDonald’s long-term recovery remains intact. McDonald’s analyst rating and strategy article
• Positive Sentiment: Analysts expect McDonald’s to emphasize menu innovation, restaurant remodels, digital ordering and delivery at Investor Day. Its delivery platform generates approximately $20 billion in systemwide sales, while management aims to route 30% of delivery orders through its own app by the end of 2027. McDonald’s delivery and app strategy article
• Positive Sentiment: Promotions—including the World Heist menu in the U.K., National Cheeseburger Day offers and entertainment-themed Happy Meals—could support customer traffic and engagement, although their financial impact is uncertain. McDonald’s World Heist menu article
• Neutral Sentiment: RBC expects McDonald’s to introduce new financial targets through 2030 at Investor Day. Those targets could clarify the growth outlook, but investors may react negatively if they fall short of expectations. McDonald’s potential 2030 targets article
• Negative Sentiment: Jefferies reduced its price target to $325 from $350 while maintaining its positive stance, indicating that management still must convince investors a sales recovery is achievable. Jefferies McDonald’s price target article
• Negative Sentiment: Analysts cited weak execution, difficult operating conditions and a delayed recovery. Value promotions such as discounted Big Mac meals may help demand but could pressure franchisee margins, particularly as fuel and supply-chain costs rise. McDonald’s value pricing and cost pressures article

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. KeyCorp reduced their price target on McDonald's from $315.00 to $305.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 5th. BTIG Research reissued a "buy" rating and issued a $350.00 target price on shares of McDonald's in a research note on Wednesday. Sanford C. Bernstein restated a "market perform" rating and set a $295.00 target price on shares of McDonald's in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft decreased their target price on McDonald's from $325.00 to $300.00 and set a "buy" rating for the company in a research report on Monday. Finally, Guggenheim lowered their price target on McDonald's from $320.00 to $290.00 and set a "neutral" rating for the company in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $317.91.

McDonald's Trading Down 1.7%

The company has a fifty day moving average price of $266.66 and a two-hundred day moving average price of $285.37. The firm has a market cap of $175.90 billion, a P/E ratio of 20.19, a PEG ratio of 2.78 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (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 business had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion. During the same period in the prior year, the business earned $3.19 EPS. McDonald's's revenue for the quarter was up 3.7% compared to the same quarter last year. As a group, sell-side analysts expect that McDonald's Corporation will post 12.88 EPS for the current year.

McDonald's Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 annualized dividend and a dividend yield of 3.0%. McDonald's's dividend payout ratio is currently 60.44%.

Institutional Investors Weigh In On McDonald's

Several institutional investors have recently added to or reduced their stakes in the stock. Anchor Investment Management LLC boosted its stake in McDonald's by 3.6% in the 2nd quarter. Anchor Investment Management LLC now owns 15,607 shares of the fast-food giant's stock worth $4,219,000 after purchasing an additional 537 shares during the period. Bullseye Investment Management LLC bought a new position in McDonald's during the 2nd quarter worth about $133,000. Marathon Wealth Advisors LLC raised its stake in shares of McDonald's by 1.4% in the 2nd quarter. Marathon Wealth Advisors LLC now owns 10,510 shares of the fast-food giant's stock valued at $2,841,000 after purchasing an additional 148 shares during the period. U S Wealth Group LLC. raised its stake in shares of McDonald's by 30.8% in the 2nd quarter. U S Wealth Group LLC. now owns 10,414 shares of the fast-food giant's stock valued at $2,815,000 after purchasing an additional 2,450 shares during the period. Finally, Bouchey Financial Group Ltd. lifted its holdings in shares of McDonald's by 2.8% in the second quarter. Bouchey Financial Group Ltd. now owns 3,779 shares of the fast-food giant's stock valued at $1,022,000 after purchasing an additional 103 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

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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