McDonald’s Corporation (NYSE:MCD) Given Average Recommendation of “Moderate Buy” by Brokerages

Shares of McDonald’s Corporation (NYSE:MCD) have received a consensus rating of “Moderate Buy” from the thirty-two ratings firms that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, fourteen have issued a hold recommendation and seventeen have issued a buy recommendation on the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $334.4483.

Several analysts have issued reports on MCD shares. TD Cowen reduced their price target on shares of McDonald’s from $330.00 to $300.00 and set a “hold” rating on the stock in a report on Thursday, May 7th. Piper Sandler upped their price target on shares of McDonald’s from $323.00 to $325.00 and gave the company a “neutral” rating in a report on Thursday, February 12th. Guggenheim reduced their price target on shares of McDonald’s from $325.00 to $320.00 and set a “neutral” rating on the stock in a report on Friday, February 13th. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $340.00 price target on shares of McDonald’s in a report on Thursday, February 12th. Finally, Rothschild & Co Redburn raised shares of McDonald’s from a “sell” rating to a “neutral” rating and upped their price objective for the company from $260.00 to $306.00 in a research note on Thursday, April 23rd.

Trending Headlines about McDonald’s

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

• Positive Sentiment: Several analysts and market commentators argue that McDonald’s looks oversold and inexpensive relative to its historical valuation, with strong fundamentals and long-term growth prospects potentially supporting a rebound. McDonald’s Is the Cheapest It’s Been in Years—Does That Make It a Buy?
• Positive Sentiment: McDonald’s landed a major naming-rights deal for the Chicago Fire stadium, which adds brand visibility and reinforces the company’s deep marketing reach. McDonald’s Lands Naming Rights Deal for $750 Million Chicago Fire Stadium
• Neutral Sentiment: McDonald’s remains a widely watched dividend stalwart, with its long record of shareholder payouts keeping it on income investors’ radar. Don’t Look Now, But 4 Blue-Chip Giants Could Be the Newest Dividend Kings
• Neutral Sentiment: News coverage also highlights that McDonald’s is a trending stock and a subject of debate among investors, but this mostly reflects attention rather than a clear new catalyst. McDonald’s Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Attention is centered on weaker U.S. company-run restaurant margins, with investors worried about pricing pressure, cost inflation, and the ownership mix affecting profitability. McDonald’s Company-Run Margins Draw Focus: Can Ownership Mix Help?
• Negative Sentiment: Commentary from Jim Cramer and others points to the stock’s recent weakness, with concerns that McDonald’s has been “breaking down” despite being a defensive name. Jim Cramer on McDonald’s: “QSR I Think Is the Better”
• Negative Sentiment: Broader consumer cost pressures, including rising restaurant prices and higher gas prices, may weigh on traffic and spending at quick-service restaurants like McDonald’s. Grocery and Restaurant Prices Post Biggest Jump Since 2022

McDonald’s Stock Performance

NYSE MCD opened at $276.42 on Friday. The firm has a market cap of $196.40 billion, a PE ratio of 22.79, a P/E/G ratio of 2.73 and a beta of 0.43. McDonald’s has a one year low of $271.98 and a one year high of $341.75. The firm’s fifty day moving average is $304.30 and its two-hundred day moving average is $310.02.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 business had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same period in the previous year, the business posted $2.67 earnings per share. The business’s revenue was up 9.4% compared to the same quarter last year. Research analysts predict that McDonald’s will post 12.96 earnings per share for the current year.

Insider Activity at McDonald’s

In related news, EVP Jonathan Banner sold 6,201 shares of the company’s stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the completion of the transaction, the executive vice president owned 2,291 shares of the company’s stock, valued at approximately $763,567.39. This represents a 73.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Joseph M. Erlinger sold 2,626 shares of the stock in a transaction on Friday, April 10th. The stock was sold at an average price of $307.00, for a total transaction of $806,182.00. Following the completion of the sale, the insider directly owned 8,400 shares of the company’s stock, valued at $2,578,800. The trade was a 23.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,119 shares of company stock valued at $3,945,973 in the last ninety days. 0.26% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of MCD. Brighton Jones LLC boosted its position in shares of McDonald’s by 21.6% during the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock valued at $2,692,000 after purchasing an additional 1,649 shares in the last quarter. Revolve Wealth Partners LLC boosted its holdings in shares of McDonald’s by 2.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant’s stock worth $563,000 after buying an additional 52 shares during the period. Sivia Capital Partners LLC boosted its holdings in shares of McDonald’s by 11.4% in the second quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock worth $589,000 after buying an additional 206 shares during the period. United Bank boosted its holdings in shares of McDonald’s by 6.0% in the second quarter. United Bank now owns 8,102 shares of the fast-food giant’s stock worth $2,367,000 after buying an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. boosted its holdings in shares of McDonald’s by 2.5% in the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock worth $3,780,000 after buying an additional 312 shares during the period. 70.29% of the stock is currently owned by institutional investors.

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.