NYSE:MCD

McDonald's - MCD Stock Forecast, Price & News

$264.23

+1.02 (+0.39%)

(As of 02/3/2023 12:00 AM ET)

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Today's Range: $261.35
▼
$265.22
50-Day Range: $262.16
▼
$276.62
52-Week Range: $217.68
▼
$281.67

Volume: 3.00 million shs
Average Volume: 2.80 million shs
Market Capitalization: $193.53 billion

P/E Ratio: 31.64
Dividend Yield: 2.28%
Price Target: $288.85

Institutional Ownership

McDonald's MarketRank™ Forecast

Analyst Rating: Moderate Buy
2.77 Rating Score
Upside/Downside: 9.2% Upside
$288.41 Price Target
Short Interest: Healthy
0.83% of Float Sold Short
Dividend Strength: Strong
Based on Four Factors
Sustainability: -2.39
Upright™ Environmental Score
News Sentiment: 0.26
Based on 83 Articles This Week
Insider Trading: Selling Shares
$370,554 Sold Last Quarter
Proj. Earnings Growth: 10.19%
From $10.60 to $11.68 Per Share

Overall MarketRank^™

MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

2.69 out of 5 stars

Retail/Wholesale Sector

31st out of 213 stocks

Eating Places Industry

7th out of 42 stocks

2.4

Analyst's Opinion

Consensus Rating
McDonald's has received a consensus rating of Buy. The company's average rating score is 2.77, and is based on 20 buy ratings, 6 hold ratings, and no sell ratings.
Price Target Upside/Downside
According to analysts' consensus price target of $288.41, McDonald's has a forecasted upside of 9.2% from its current price of $264.23.
Amount of Analyst Coverage
McDonald's has been the subject of 12 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

4.0

Short Interest

Percentage of Shares Shorted
0.83% of the float of McDonald's has been sold short.
Short Interest Ratio / Days to Cover
McDonald's has a short interest ratio ("days to cover") of 2.1, which is generally considered an acceptable ratio of short interest to trading volume.
Change versus previous month
Short interest in McDonald's has recently decreased by 5.00%, indicating that investor sentiment is improving.

4.2

Dividend Strength

Dividend Yield
McDonald's pays a meaningful dividend of 2.28%, higher than the bottom 25% of all stocks that pay dividends.
Dividend Growth
McDonald's has been increasing its dividend for 46 years.
Dividend Coverage
The dividend payout ratio of McDonald's is 72.81%. This payout ratio is at a healthy, sustainable level, below 75%.
Dividend Sustainability
Based on earnings estimates, McDonald's will have a dividend payout ratio of 52.05% next year. This indicates that McDonald's will be able to sustain or increase its dividend.

1.1

Sustainability and ESG

Overall ESG (Environmental, Social, and Governance) Score
McDonald's has received a -43.27% net impact score from Upright. The largest negative impact of McDonald's in category "Physical diseases" seems to be driven mostly by its "Sugar-sweetened soft drinks", "Fast food hamburgers with beef", and "French fries" products. See details.
Environmental Sustainability
The Environmental Impact score for McDonald's is -2.39.

2.9

News and Social Media Coverage

News Sentiment
McDonald's has a news sentiment score of 0.26. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.46 average news sentiment score of Retail/Wholesale companies.
News Coverage This Week
MarketBeat has tracked 83 news articles for McDonald's this week, compared to 26 articles on an average week.
Social Mentions This Week
MarketBeat has tracked 2 reddit mentions for McDonald's this week, compared to 10 mentions on an average week.
Search Interest
87 people have searched for MCD on MarketBeat in the last 30 days. This is an increase of 34% compared to the previous 30 days.
MarketBeat Follows
44 people have added McDonald's to their MarketBeat watchlist in the last 30 days. This is an increase of 26% compared to the previous 30 days.

2.5

Company Ownership

Insider Buying vs. Insider Selling
In the past three months, McDonald's insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $370,554.00 in company stock.
Percentage Held by Insiders
Only 0.25% of the stock of McDonald's is held by insiders.
Percentage Held by Institutions
66.86% of the stock of McDonald's is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

2.5

Earnings and Valuation

Earnings Growth
Earnings for McDonald's are expected to grow by 10.19% in the coming year, from $10.60 to $11.68 per share.
Price to Earnings Ratio vs. the Market
The P/E ratio of McDonald's is 31.64, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 136.69.
Price to Earnings Ratio vs. Sector
The P/E ratio of McDonald's is 31.64, which means that it is trading at a less expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 41.98.
Price to Earnings Growth Ratio
McDonald's has a PEG Ratio of 3.12. PEG Ratios above 1 indicate that a company could be overvalued.

See Top Rated MarketRank™ Stocks Here

About McDonald's (NYSE:MCD) Stock

McDonald's Corporation is a U.S.-based multinational restaurant chain that serves hamburgers, fries, chicken sandwiches and drinks. The company is the largest restaurant chain by revenue and serves more than 69 million customers daily. Total revenue topped $23 billion in 2022, with most revenue coming from its franchisees. The company operates in 100 countries and is the world's second-largest private employer, with more than 200,000 executives, managers, cooks and front-line staff.

McDonald's most iconic food items include French fries and the Big Mac. McDonald's serves hot and crispy fries. Its Big Mac is a double-decker burger with cheese, lettuce, tomato and "secret sauce," a combination of thousand island and French dressing that evokes a sharper flavor.

Richard and Maurice McDonald founded McDonald's in 1940. Its first restaurant location was in San Bernardino, California, and it quickly rebranded into a hamburger stand. The new concept met colossal success, and soon, the two were franchising their brand to other operators. The key to the brother's success was the Speedee Service System introduced in 1948. This system modeled concepts established by earlier chains.

The company introduced the golden arches in 1953 in Arizona and reached a significant turning point in 1955 when Ray Kroc entered the picture. He came aboard as the company's franchising agent and bought the company while expanding it. His first restaurant was the company's ninth total, but many agree that Kroc created the modern McDonald's Corporation. During his tenure, McDonald's expanded its footprint, enhanced its menu and grew into international territories.

The fictional character Ronald McDonald came to life in 1963. He lives in McDonaldland with his pals Mayor McCheese, Grimace, Birdie the Early Bird, the Fry Kids and the Hamburglar. He was invented as a marketing ploy to attract children and has become one of the nation's most beloved characters. At the peak of his popularity, the company employed more than 300 full-time clowns to portray Ronald McDonald.

Today, McDonald's Corporation operates and franchises McDonald's restaurants globally. The company generates revenue via sales in company-owned stores and rents, fees and royalties from its franchisees. The company's business model is to aid franchisees with real estate purchases and buildings so that it can collect on rent and other fees and brand royalties. As of 2022, the company owns about 45% of the land its restaurants sit on and 70% of the buildings. This model not only generates additional revenue and earnings but helps to insulate it from ups and downs in the consumer cycle.

As of December 31, 2023, the company operated about 38,000 restaurants, which includes the closing or divestiture of business in Russia.

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MCD Stock News Headlines

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January 31, 2023 | marketbeat.com

Will McDonald’s Stock Hit an All-Time HIgh After Earnings?

McDonald's stock is down slightly as inflation concerns outweigh a strong earnings report. But with help from the Fed, MCD stock may hit an all-time high

January 31, 2023 | marketbeat.com

Adult Happy Meals, McRib, feed McDonald's sales in Q4

Adult Happy Meals and other limited-time promotions boosted traffic at McDonald’s restaurants during the fourth quarter despite higher prices

January 30, 2023 | dividendstocks.com

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January 26, 2023 | marketbeat.com

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January 13, 2023 | marketbeat.com

Wendy's announces corporate revamp, possible job cuts

Wendy’s said Friday it’s planning a restructuring, including possible corporate layoffs, in an effort to speed decision-making and invest more in new restaurant development