Tigress Financial Issues Positive Forecast for McDonald's (NYSE:MCD) Stock Price

Key Points

• Tigress Financial raised its price target on McDonald’s from $385 to $390 and kept a buy rating, implying about 45.66% upside from the current share price.
• McDonald’s stock was down 2.1% to $267.75, trading near its 12-month low and below both its 50-day and 200-day moving averages, highlighting recent pressure on the shares.
• The company’s last earnings report beat expectations, with $2.83 EPS versus $2.74 expected and revenue of $6.52 billion, while analysts now broadly expect 12.9 EPS for the full fiscal year.

McDonald's (NYSE:MCD - Get Free Report) had its target price hoisted by Tigress Financial from $385.00 to $390.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the fast-food giant's stock. Tigress Financial's price target points to a potential upside of 45.66% from the company's current price.

MCD has been the topic of several other reports. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a research report on Friday, June 12th. Cfra upgraded shares of McDonald's to a "buy" rating in a report on Friday, May 8th. Morgan Stanley decreased their price objective on shares of McDonald's from $331.00 to $322.00 and set an "equal weight" rating for the company in a research report on Wednesday. JPMorgan Chase & Co. lowered their target price on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a research note on Monday, May 11th. Finally, Rothschild & Co Redburn raised shares of McDonald's from a "sell" rating to a "neutral" rating and boosted their target price for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Fifteen analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, McDonald's has an average rating of "Moderate Buy" and a consensus target price of $335.77.

McDonald's Stock Down 2.1%

Shares of NYSE MCD traded down $5.71 during trading hours on Friday, hitting $267.75. 1,974,014 shares of the stock were exchanged, compared to its average volume of 3,790,953. The company has a market cap of $190.24 billion, a PE ratio of 22.07, a PEG ratio of 2.75 and a beta of 0.41. The firm has a fifty day moving average price of $277.23 and a 200-day moving average price of $300.56. McDonald's has a 12 month low of $264.09 and a 12 month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate of $2.74 by $0.09. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The company had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. During the same period last year, the firm earned $2.67 earnings per share. McDonald's's revenue was up 9.4% compared to the same quarter last year. As a group, equities analysts anticipate that McDonald's will post 12.9 earnings per share for the current fiscal year.

Insider Activity at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares of the company's stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 8,681 shares of company stock valued at $2,456,440. Company insiders own 0.26% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its position in McDonald's by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock valued at $22,112,675,000 after buying an additional 703,458 shares during the period. State Street Corp boosted its stake in shares of McDonald's by 2.7% during the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant's stock worth $10,997,789,000 after acquiring an additional 959,140 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of McDonald's by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock worth $5,195,965,000 after acquiring an additional 76,090 shares in the last quarter. Price T Rowe Associates Inc. MD grew its position in shares of McDonald's by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant's stock valued at $2,895,768,000 after acquiring an additional 277,617 shares during the period. Finally, Norges Bank purchased a new position in shares of McDonald's in the 4th quarter valued at about $2,890,438,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key McDonald's News

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

• Positive Sentiment: McDonald’s is rolling out new limited-time menu items, including Caesar sauce and new chicken sandwiches, which could help drive customer interest and near-term restaurant traffic. McDonald's unveils new Caesar sauce as fans renew calls for salads' return
• Positive Sentiment: Analysts’ earnings preview suggests McDonald’s is heading into its next report with expectations for modest single-digit profit growth, which supports the case for stable fundamentals. McDonald's Earnings Preview: What to Expect
• Positive Sentiment: Research pieces highlighted McDonald’s marketing strategy, loyalty efforts, and value offerings as tools that could improve customer engagement and help traffic trends. Can McDonald's Global Marketing Strategy Drive Customer Traffic?
• Neutral Sentiment: Several articles focused on product launches, store openings, and fan reactions, but these are likely more of a branding and engagement story than a material near-term earnings driver. McDonald’s introducing the new sauce of the summer to New Jersey
• Negative Sentiment: Other coverage pointed to ongoing weakness in McDonald’s stock, with one report saying it is near nearly 2-year lows, reflecting investor concern about slower demand and a soft operating backdrop. Why McDonald's stock is at nearly 2-year lows
• Negative Sentiment: One article also framed McDonald’s as having a “McProblem” that is not improving, reinforcing worries that traffic and consumer trends may still be under pressure. McDonald's has a McProblem that's not getting better

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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