Mcdonald’s (MCD) Upgraded by Zacks Investment Research to “Hold”
According to Zacks, “McDonald’s impressive earnings surprise history, various sales and digital initiatives as well as positive comparable sales bode well. In fact, global comps at McDonald’s have been positive over the trailing 14 quarters. Furthermore, increased focus on delivery and accelerated deployment of Experience of the Future restaurants in the United States should boost its performance. These apart, efforts to drive growth in International Lead & High Growth Markets bode well. However, shares of McDonald’s have underperformed the industry in the past year. High labor costs and currency headwinds remain major concerns. Moreover, revenues have been under pressure for quite some time due to strategic refranchising initiatives. Even its heightened focus on refranchising might cut the capital requirements and facilitate EPS growth. McDonald’s margins have been under pressure from worldwide wage increases.”
MCD has been the subject of several other reports. Royal Bank of Canada restated a buy rating and issued a $205.00 price target on shares of Mcdonald’s in a report on Wednesday, January 30th. Stephens upgraded Mcdonald’s from an equal weight rating to an overweight rating and increased their price target for the stock from $180.00 to $200.00 in a report on Tuesday, February 19th. Wells Fargo & Co increased their price target on Mcdonald’s from $202.00 to $203.00 and gave the stock an outperform rating in a report on Friday, January 11th. Telsey Advisory Group restated an outperform rating and issued a $210.00 price target (up from $195.00) on shares of Mcdonald’s in a report on Friday, April 5th. Finally, Robert W. Baird increased their price target on Mcdonald’s from $196.00 to $205.00 in a report on Monday, April 1st. Six equities research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company. The stock has an average rating of Buy and a consensus target price of $195.50.
Mcdonald’s (NYSE:MCD) last announced its quarterly earnings results on Wednesday, January 30th. The fast-food giant reported $1.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.90 by $0.07. Mcdonald’s had a negative return on equity of 104.38% and a net margin of 28.18%. The company had revenue of $5.16 billion during the quarter, compared to the consensus estimate of $5.16 billion. During the same period in the prior year, the company earned $1.71 earnings per share. The company’s revenue for the quarter was down 3.3% compared to the same quarter last year. On average, equities analysts expect that Mcdonald’s will post 8.12 EPS for the current fiscal year.
In other news, VP Robert Lane Gibbs sold 22,036 shares of the company’s stock in a transaction dated Thursday, January 31st. The stock was sold at an average price of $180.95, for a total transaction of $3,987,414.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, VP Catherine A. Hoovel sold 1,328 shares of the company’s stock in a transaction dated Thursday, February 14th. The stock was sold at an average price of $175.95, for a total value of $233,661.60. Following the transaction, the vice president now directly owns 2,499 shares of the company’s stock, valued at $439,699.05. The disclosure for this sale can be found here. Insiders have sold 129,775 shares of company stock valued at $23,249,437 over the last ninety days. 0.22% of the stock is owned by insiders.
Several hedge funds have recently bought and sold shares of the company. FMR LLC boosted its position in Mcdonald’s by 15.3% during the fourth quarter. FMR LLC now owns 21,356,753 shares of the fast-food giant’s stock valued at $3,792,318,000 after purchasing an additional 2,831,716 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its position in Mcdonald’s by 16,975.1% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 14,998,095 shares of the fast-food giant’s stock valued at $84,000 after purchasing an additional 14,910,259 shares during the last quarter. Northern Trust Corp boosted its position in Mcdonald’s by 2.8% during the fourth quarter. Northern Trust Corp now owns 11,680,799 shares of the fast-food giant’s stock valued at $2,074,161,000 after purchasing an additional 317,676 shares during the last quarter. Geode Capital Management LLC boosted its position in Mcdonald’s by 7.8% during the fourth quarter. Geode Capital Management LLC now owns 9,441,973 shares of the fast-food giant’s stock valued at $1,673,764,000 after purchasing an additional 683,872 shares during the last quarter. Finally, Bank of New York Mellon Corp boosted its position in Mcdonald’s by 4.8% during the fourth quarter. Bank of New York Mellon Corp now owns 8,347,633 shares of the fast-food giant’s stock valued at $1,482,289,000 after purchasing an additional 383,089 shares during the last quarter. 68.80% of the stock is owned by institutional investors.
McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2018, the company operated 37,855 restaurants, including 35,085 franchised restaurants comprising 21,685 franchised to conventional franchisees, 7,225 licensed to developmental licensees, and 6,175 licensed to foreign affiliates; and 2,770 company-operated restaurants.
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