Zacks Research Comments on McDonald’s Co.’s Q2 2024 Earnings (NYSE:MCD)

McDonald’s Co. (NYSE:MCD) – Stock analysts at Zacks Research reduced their Q2 2024 earnings per share (EPS) estimates for McDonald’s in a report issued on Tuesday, April 16th. Zacks Research analyst H. Ray now anticipates that the fast-food giant will post earnings of $3.17 per share for the quarter, down from their prior forecast of $3.22. The consensus estimate for McDonald’s’ current full-year earnings is $12.33 per share. Zacks Research also issued estimates for McDonald’s’ Q3 2024 earnings at $3.32 EPS, FY2024 earnings at $12.25 EPS, Q1 2025 earnings at $2.99 EPS, Q2 2025 earnings at $3.33 EPS, Q3 2025 earnings at $3.47 EPS, Q4 2025 earnings at $3.32 EPS and FY2025 earnings at $13.11 EPS.

Several other equities analysts have also issued reports on the company. Stifel Nicolaus lowered their price target on McDonald’s from $315.00 to $300.00 and set a “hold” rating on the stock in a research note on Thursday, April 11th. UBS Group lowered their price objective on McDonald’s from $340.00 to $335.00 and set a “buy” rating on the stock in a research note on Friday, April 5th. Robert W. Baird reiterated an “outperform” rating and issued a $315.00 price objective on shares of McDonald’s in a research note on Tuesday, February 6th. Barclays lowered their price objective on McDonald’s from $343.00 to $340.00 and set an “overweight” rating on the stock in a research note on Tuesday, February 6th. Finally, Wedbush reissued an “outperform” rating and issued a $330.00 target price on shares of McDonald’s in a report on Tuesday, February 6th. Nine investment analysts have rated the stock with a hold rating and twenty-two have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $319.72.

McDonald’s Stock Up 0.4 %

Shares of MCD opened at $271.99 on Thursday. McDonald’s has a 12-month low of $245.73 and a 12-month high of $302.39. The firm has a market capitalization of $196.11 billion, a price-to-earnings ratio of 23.51, a P/E/G ratio of 2.97 and a beta of 0.71. The stock’s 50-day moving average price is $283.10 and its 200 day moving average price is $280.72.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Monday, February 5th. The fast-food giant reported $2.95 earnings per share for the quarter, topping the consensus estimate of $2.83 by $0.12. McDonald’s had a negative return on equity of 171.96% and a net margin of 33.22%. The business had revenue of $6.41 billion during the quarter, compared to analysts’ expectations of $6.45 billion. During the same quarter in the previous year, the firm earned $2.59 EPS. The firm’s revenue was up 8.1% compared to the same quarter last year.

McDonald’s Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 15th. Stockholders of record on Friday, March 1st were issued a dividend of $1.67 per share. The ex-dividend date was Thursday, February 29th. This represents a $6.68 annualized dividend and a dividend yield of 2.46%. McDonald’s’s dividend payout ratio is presently 57.74%.

Insider Activity at McDonald’s

In related news, insider Joseph M. Erlinger sold 1,099 shares of McDonald’s stock in a transaction that occurred on Friday, March 22nd. The shares were sold at an average price of $284.38, for a total value of $312,533.62. Following the transaction, the insider now directly owns 18,075 shares of the company’s stock, valued at $5,140,168.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.27% of the stock is currently owned by insiders.

Institutional Trading of McDonald’s

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Maryland State Retirement & Pension System lifted its holdings in shares of McDonald’s by 0.5% during the first quarter. Maryland State Retirement & Pension System now owns 57,065 shares of the fast-food giant’s stock worth $15,270,000 after purchasing an additional 285 shares during the period. Cohen Investment Advisors LLC lifted its holdings in shares of McDonald’s by 11.9% during the first quarter. Cohen Investment Advisors LLC now owns 10,330 shares of the fast-food giant’s stock worth $2,913,000 after purchasing an additional 1,095 shares during the period. GenTrust LLC lifted its holdings in shares of McDonald’s by 25.2% during the first quarter. GenTrust LLC now owns 1,043 shares of the fast-food giant’s stock worth $294,000 after purchasing an additional 210 shares during the period. Marshall Financial Group LLC lifted its holdings in shares of McDonald’s by 3.9% during the first quarter. Marshall Financial Group LLC now owns 9,373 shares of the fast-food giant’s stock worth $2,643,000 after purchasing an additional 350 shares during the period. Finally, American National Bank & Trust Co. VA acquired a new position in shares of McDonald’s during the first quarter worth $978,000. Institutional investors own 70.29% of the company’s stock.

McDonald’s Company Profile

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.