Zacks Investment Research Lowers McDonald’s Corp. (MCD) to Hold
According to Zacks, “McDonald’s has turned itself around in the domestic market, mainly driven by its successful all-day Breakfast platform. The company is further trying to strengthen its position in the U.S. through various sales initiatives like menu innovation, introduction of value meals, efficient marketing and promotions, and improved service. Backed by these efforts, in the second-quarter 2016, McDonald’s posted positive comps for the fourth consecutive quarter in the region. The company enjoys moderate growth prospects through its exposure in the under-penetrated international markets. Moreover, the company has positive record of earnings surprises in recent quarters. Estimates too have been mostly going up ahead of McDonald’s third quarter earnings release. However, soft industry growth, macroeconomic concerns in various parts of the world along with negative currency translation remain potent headwinds.”
MCD has been the topic of several other research reports. Credit Suisse Group AG reissued an outperform rating and set a $132.00 target price on shares of McDonald’s Corp. in a research note on Friday, September 16th. Robert W. Baird reissued an outperform rating on shares of McDonald’s Corp. in a research note on Thursday, September 8th. Vetr raised shares of McDonald’s Corp. from a hold rating to a buy rating and set a $121.01 target price on the stock in a research note on Wednesday, September 28th. Citigroup Inc. lowered their price objective on shares of McDonald’s Corp. from $130.00 to $122.00 and set a neutral rating on the stock in a research note on Tuesday, September 13th. Finally, Canaccord Genuity initiated coverage on shares of McDonald’s Corp. in a research note on Monday, August 22nd. They issued a hold rating and a $122.00 price objective on the stock. Two equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating and thirteen have given a buy rating to the company. The company presently has a consensus rating of Hold and a consensus price target of $125.85.
McDonald’s Corp. (NYSE:MCD) opened at 113.45 on Tuesday. The stock has a market cap of $96.81 billion, a P/E ratio of 21.66 and a beta of 0.61. McDonald’s Corp. has a 52 week low of $101.60 and a 52 week high of $131.96. The company’s 50 day moving average is $115.46 and its 200 day moving average is $121.70.
McDonald’s Corp. (NYSE:MCD) last released its earnings results on Tuesday, July 26th. The fast-food giant reported $1.45 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.39 by $0.06. The firm had revenue of $6.27 billion for the quarter, compared to analysts’ expectations of $6.28 billion. McDonald’s Corp. had a net margin of 18.73% and a return on equity of 97.56%. McDonald’s Corp.’s quarterly revenue was down 3.6% on a year-over-year basis. During the same quarter last year, the company earned $1.26 EPS. Equities analysts predict that McDonald’s Corp. will post $5.56 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Stockholders of record on Thursday, December 1st will be paid a $0.94 dividend. This represents a $3.76 annualized dividend and a dividend yield of 3.31%. The ex-dividend date is Tuesday, November 29th. This is an increase from McDonald’s Corp.’s previous quarterly dividend of $0.89. McDonald’s Corp.’s payout ratio is currently 68.59%.
In other news, Chairman Andrew J. Mckenna sold 70,000 shares of the business’s stock in a transaction on Thursday, August 4th. The shares were sold at an average price of $118.28, for a total value of $8,279,600.00. Following the sale, the chairman now owns 108,841 shares in the company, valued at approximately $12,873,713.48. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.28% of the stock is currently owned by insiders.
Large investors have recently modified their holdings of the stock. Janus Capital Management LLC increased its stake in shares of McDonald’s Corp. by 49.3% in the second quarter. Janus Capital Management LLC now owns 4,192,114 shares of the fast-food giant’s stock valued at $504,479,000 after buying an additional 1,383,391 shares in the last quarter. Emerald Acquisition Ltd. purchased a new stake in shares of McDonald’s Corp. during the second quarter valued at approximately $158,428,000. Societe Generale bought a new position in shares of McDonald’s Corp. during the second quarter valued at about $151,614,000. BlackRock Fund Advisors increased its position in shares of McDonald’s Corp. by 4.1% in the second quarter. BlackRock Fund Advisors now owns 16,763,162 shares of the fast-food giant’s stock valued at $2,017,279,000 after buying an additional 655,395 shares during the period. Finally, Renaissance Technologies LLC bought a new position in shares of McDonald’s Corp. during the first quarter valued at about $76,602,000. Institutional investors own 69.10% of the company’s stock.
McDonald’s Corp. Company Profile
McDonald’s Corporation (McDonald’s) operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally-relevant menu of quality food and drinks sold at various price points in over 100 countries. The Company’s segments include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate.
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