Melius Research Issues Pessimistic Forecast for McDonald’s (NYSE:MCD) Stock Price

McDonald’s (NYSE:MCD) had its target price dropped by equities research analysts at Melius Research from $250.00 to $230.00 in a research report issued to clients and investors on Monday, MarketBeat Ratings reports. The firm presently has a “sell” rating on the fast-food giant’s stock. Melius Research’s price target suggests a potential downside of 1.67% from the stock’s previous close.

MCD has been the subject of a number of other research reports. Deutsche Bank Aktiengesellschaft lowered their target price on McDonald’s from $325.00 to $300.00 and set a “buy” rating for the company in a research note on Monday, September 14th. Weiss Ratings reiterated a “hold (c)” rating on shares of McDonald’s in a report on Friday, September 18th. Sanford C. Bernstein reissued a “market perform” rating on shares of McDonald’s in a research report on Friday. TD Cowen dropped their target price on shares of McDonald’s from $282.00 to $270.00 and set a “hold” rating on the stock in a report on Thursday, September 24th. Finally, Morgan Stanley reduced their target price on shares of McDonald’s from $308.00 to $297.00 and set an “equal weight” rating on the stock in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, McDonald’s presently has a consensus rating of “Moderate Buy” and a consensus price target of $294.38.

McDonald’s Trading Up 0.1%

Shares of MCD opened at $233.91 on Monday. The firm’s 50-day moving average price is $260.95 and its 200-day moving average price is $279.10. The firm has a market capitalization of $165.53 billion, a price-to-earnings ratio of 19.00, a PEG ratio of 2.61 and a beta of 0.41. McDonald’s has a 1-year low of $232.06 and a 1-year high of $341.75.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating the consensus estimate 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 company had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.13 billion. During the same quarter in the previous year, the company earned $3.19 earnings per share. McDonald’s’s quarterly revenue was up 3.7% on a year-over-year basis. On average, research analysts forecast that McDonald’s will post 12.85 EPS for the current fiscal year.

Hedge Funds Weigh In On McDonald’s

Hedge funds have recently added to or reduced their stakes in the company. Ascentis Wealth Management LLC lifted its stake in McDonald’s by 4,008.8% during the 2nd quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock valued at $22,768,000 after acquiring an additional 82,180 shares during the period. Borer Denton & Associates Inc. boosted its holdings in McDonald’s by 16.9% in the second quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock worth $3,746,000 after purchasing an additional 2,000 shares during the last quarter. HighTower Advisors LLC grew its position in McDonald’s by 7.1% in the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock worth $397,822,000 after purchasing an additional 97,060 shares during the period. Peterson Wealth Services grew its position in McDonald’s by 3,294.5% in the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock worth $3,600,000 after purchasing an additional 11,432 shares during the period. Finally, Capital International Sarl raised its stake in McDonald’s by 10.4% during the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock valued at $19,639,000 after buying an additional 6,079 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is investing in its “NEXT” strategy, including restaurant technology, equipment and process improvements aimed at producing roughly 250 basis points of restaurant-level efficiency gains. AI tools targeting as much as 50 labor hours of savings per restaurant each week could support margins over time. Restaurant Dive article
• Positive Sentiment: The company is testing advertising on drive-thru menu screens and building a media network that could eventually become a roughly $1 billion revenue opportunity, providing a higher-margin growth channel beyond restaurant sales. Quartz article
• Positive Sentiment: A reported Pokémon Trading Card Game Happy Meal promotion planned for November could boost traffic and appeal to families, although its financial impact is likely limited. Hypebeast article
• Neutral Sentiment: McDonald’s is reportedly exploring higher-protein menu items and new portion sizes to adapt to the growth of GLP-1 weight-loss drugs. The initiative could protect long-term relevance, but it requires substantial upfront investment. Yahoo Finance article
• Negative Sentiment: Reports that McDonald’s is using AI to recommend Big Mac prices based on customers’ willingness to pay have raised concerns about inconsistent pricing, customer backlash and possible antitrust scrutiny. Reuters article
• Negative Sentiment: Investors appear concerned about the estimated $8.5 billion menu and restaurant overhaul, with Morgan Stanley lowering forecasts through 2030 and warning that U.S. comparable sales may remain pressured through year-end. Yahoo Finance article
• Negative Sentiment: Analyst sentiment has deteriorated: Melius Research cut its price target to $230 and assigned a “sell” rating, while Jefferies reduced its target to $250 despite retaining an “overweight” recommendation. American Banking News article

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.