Robert W. Baird Cuts McDonald’s (NYSE:MCD) Price Target to $250.00

McDonald’s (NYSE:MCD) had its price objective decreased by Robert W. Baird from $285.00 to $250.00 in a research note published on Thursday, MarketBeat.com reports. Robert W. Baird currently has a neutral rating on the fast-food giant’s stock.

Several other brokerages have also recently weighed in on MCD. Needham & Company LLC reissued a “buy” rating on shares of McDonald’s in a research note on Monday, September 21st. Evercore lowered their target price on McDonald’s from $320.00 to $300.00 and set an “outperform” rating for the company in a research report on Thursday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of McDonald’s in a report on Friday, September 18th. UBS Group set a $260.00 price target on McDonald’s in a research report on Thursday. Finally, KeyCorp reissued an “overweight” rating on shares of McDonald’s in a research note on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $300.40.

McDonald’s Price Performance

NYSE:MCD opened at $236.57 on Thursday. The firm’s 50 day simple moving average is $262.23 and its 200 day simple moving average is $280.76. McDonald’s has a one year low of $234.03 and a one year high of $341.75. The company has a market cap of $167.41 billion, a PE ratio of 19.22, a P/E/G ratio of 2.56 and a beta of 0.41.

McDonald’s (NYSE:MCD) last posted its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The firm had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period in the previous year, the firm posted $3.19 EPS. The company’s revenue for the quarter was up 3.7% compared to the same quarter last year. Equities research analysts expect that McDonald’s will post 12.86 EPS for the current year.

McDonald’s Increases Dividend

The company 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 represents a $7.72 annualized dividend and a dividend yield of 3.3%. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. McDonald’s’s dividend payout ratio is currently 60.44%.

Hedge Funds Weigh In On McDonald’s

Hedge funds and other institutional investors have recently bought and sold shares of the company. Abound Financial LLC bought a new stake in McDonald’s during the fourth quarter valued at $30,000. Purpose Unlimited Inc. bought a new position in shares of McDonald’s in the 4th quarter worth about $31,000. GKV Capital Management Co. Inc. acquired a new position in shares of McDonald’s in the 1st quarter valued at about $33,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of McDonald’s in the 1st quarter valued at about $43,000. Finally, POM Investment Strategies LLC boosted its position in shares of McDonald’s by 46.2% during the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock valued at $47,000 after purchasing an additional 55 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s raised its quarterly dividend by nearly 4%, supporting the investment case for income-oriented shareholders. Some analysts also view the post-investor-day pullback as improving the stock’s valuation and dividend yield. McDonald’s Increased Its Dividend by Nearly 4%. How to Play MCD Stock Here.
• Positive Sentiment: The company’s NEXT strategy targets improved restaurant productivity, AI-enabled operations, stronger loyalty sales and higher margins through 2030. Management also plans new protein-focused menu items, including options aimed at consumers using GLP-1 weight-loss medications. Struggling McDonald’s pins hopes on restaurant upgrades, protein bowls and AI
• Neutral Sentiment: McDonald’s revived its Monopoly promotion with a major change, which could support engagement and customer traffic, although the announcement is unlikely to materially affect near-term earnings. McDonald’s revives its popular Monopoly game with one big change
• Negative Sentiment: McDonald’s committed approximately $8.5 billion through 2036 to franchisee support, restaurant modernization, technology and operational upgrades. Investors appear concerned that the spending will pressure cash flow and margins before the benefits arrive. McDonald’s expects inflation to keep traffic flat, shares dip after $8.5 bln capex plan
• Negative Sentiment: CEO Chris Kempczinski warned that elevated inflation and lackluster traffic may persist, particularly among lower-income consumers. That outlook undermines expectations for a quick sales recovery and has prompted multiple analysts to reduce their price targets, including Baird, JPMorgan, Oppenheimer, RBC and BTIG. McDonald’s CEO Warns Elevated Inflation Will Stick Around

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.