Jefferies Financial Group Cuts McDonald’s (NYSE:MCD) Price Target to $250.00

McDonald’s (NYSE:MCD) had its target price cut by Jefferies Financial Group from $260.00 to $250.00 in a research report report published on Tuesday morning,Benzinga reports. They currently have an overweight rating on the fast-food giant’s stock.

Other equities analysts have also recently issued research reports about the company. Needham & Company LLC reiterated a “buy” rating on shares of McDonald’s in a report on Monday, September 21st. Tigress Financial increased their price target on McDonald’s from $385.00 to $390.00 and gave the company a “buy” rating in a report on Friday, July 17th. TD Cowen decreased their price target on McDonald’s from $282.00 to $270.00 and set a “hold” rating on the stock in a report on Thursday, September 24th. Weiss Ratings restated a “hold (c)” rating on shares of McDonald’s in a research report on Friday, September 18th. Finally, Evercore dropped their price objective on shares of McDonald’s from $320.00 to $300.00 and set an “outperform” rating for the company in a research note on Thursday, September 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $300.64.

McDonald’s Trading Up 0.3%

Shares of NYSE:MCD opened at $231.75 on Tuesday. McDonald’s has a 12 month low of $229.61 and a 12 month high of $341.75. The company has a 50-day moving average price of $259.69 and a 200 day moving average price of $277.78. The company has a market cap of $163.99 billion, a price-to-earnings ratio of 18.83, a PEG ratio of 2.58 and a beta of 0.44.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate 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 company had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same quarter last year, the business posted $3.19 earnings per share. The firm’s revenue was up 3.7% on a year-over-year basis. As a group, equities analysts forecast that McDonald’s will post 12.85 EPS for the current year.

McDonald’s Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a $1.93 dividend. The ex-dividend date is Tuesday, December 1st. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.3%. McDonald’s’s dividend payout ratio (DPR) is currently 60.44%.

Institutional Investors Weigh In On McDonald’s

Several large investors have recently added to or reduced their stakes in the stock. Sound Income Strategies LLC boosted its stake in shares of McDonald’s by 0.6% during the 1st quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant’s stock worth $1,718,000 after purchasing an additional 35 shares during the period. Jacobsen Capital Management raised its position in McDonald’s by 2.9% in the 1st quarter. Jacobsen Capital Management now owns 1,267 shares of the fast-food giant’s stock worth $394,000 after purchasing an additional 36 shares during the period. Sterling Investment Counsel LLC raised its position in McDonald’s by 0.7% in the 1st quarter. Sterling Investment Counsel LLC now owns 5,303 shares of the fast-food giant’s stock worth $1,648,000 after purchasing an additional 37 shares during the period. Legacy Wealth Managment LLC ID lifted its stake in McDonald’s by 11.0% in the first quarter. Legacy Wealth Managment LLC ID now owns 372 shares of the fast-food giant’s stock worth $116,000 after purchasing an additional 37 shares during the last quarter. Finally, Millstone Evans Group LLC lifted its stake in McDonald’s by 2.5% in the first quarter. Millstone Evans Group LLC now owns 1,532 shares of the fast-food giant’s stock worth $476,000 after purchasing an additional 38 shares during the last quarter. 70.29% of the stock is 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 preparing to test hand-breaded chicken tenders and sandwiches at about 200 U.S. restaurants. The initiative could strengthen its chicken offering and attract customers seeking premium menu options, although the financial impact remains unproven. McDonald’s prepares test of hand-breaded chicken tenders, sandwiches at 200 spots
• Positive Sentiment: The company’s beverage expansion is being viewed as a potential global growth driver, with new drinks supporting restaurant visits, higher average checks and cash flow. Can McDonald’s Beverage Expansion Become Its Next Global Growth Wave?
• Positive Sentiment: McDonald’s is adding Disney+ and Uber credits to its rewards program as it seeks to reactivate customers and increase loyalty engagement. McDonald’s is adding Disney+ and Uber credits to its rewards program

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.