StockNews.com Downgrades McDonald’s (NYSE:MCD) to Hold

StockNews.com downgraded shares of McDonald’s (NYSE:MCDFree Report) from a buy rating to a hold rating in a research note released on Friday.

A number of other equities analysts have also recently weighed in on MCD. KeyCorp decreased their price objective on shares of McDonald’s from $330.00 to $310.00 and set an overweight rating for the company in a research report on Tuesday, October 17th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of McDonald’s in a research report on Thursday, October 19th. They set a buy rating and a $287.00 price target on the stock. TD Cowen raised their target price on shares of McDonald’s from $300.00 to $325.00 and gave the stock an outperform rating in a report on Thursday, December 7th. Piper Sandler raised their price target on shares of McDonald’s from $273.00 to $299.00 and gave the company a neutral rating in a research note on Monday, December 11th. Finally, Royal Bank of Canada reduced their target price on shares of McDonald’s from $340.00 to $335.00 and set an outperform rating for the company in a report on Tuesday, February 6th. Seven research analysts have rated the stock with a hold rating and twenty-two have assigned a buy rating to the company. According to MarketBeat, the stock presently has an average rating of Moderate Buy and an average target price of $320.10.

Read Our Latest Stock Report on MCD

McDonald’s Stock Performance

Shares of MCD opened at $289.53 on Friday. The company has a market capitalization of $210.01 billion, a PE ratio of 25.02, a price-to-earnings-growth ratio of 3.12 and a beta of 0.73. The stock has a fifty day moving average of $292.40 and a two-hundred day moving average of $280.01. McDonald’s has a fifty-two week low of $245.73 and a fifty-two week high of $302.39.

McDonald’s (NYSE:MCDGet Free Report) last released its quarterly earnings data on Monday, February 5th. The fast-food giant reported $2.95 EPS for the quarter, topping analysts’ consensus estimates of $2.83 by $0.12. The business had revenue of $6.41 billion during the quarter, compared to the consensus estimate of $6.45 billion. McDonald’s had a negative return on equity of 171.96% and a net margin of 33.22%. The business’s revenue for the quarter was up 8.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.59 EPS. As a group, equities research analysts forecast that McDonald’s will post 12.38 earnings per share for the current fiscal year.

McDonald’s Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 15th. Investors of record on Friday, March 1st will be given a dividend of $1.67 per share. The ex-dividend date of this dividend is Thursday, February 29th. This represents a $6.68 annualized dividend and a yield of 2.31%. McDonald’s’s payout ratio is currently 57.74%.

Insider Activity at McDonald’s

In other news, insider Joseph M. Erlinger sold 4,583 shares of the stock in a transaction dated Friday, December 22nd. The shares were sold at an average price of $290.70, for a total value of $1,332,278.10. Following the sale, the insider now directly owns 8,187 shares of the company’s stock, valued at $2,379,960.90. The sale was disclosed in a legal filing with the SEC, which is available at this link. In other McDonald’s news, insider Joseph M. Erlinger sold 4,487 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $281.25, for a total transaction of $1,261,968.75. Following the completion of the transaction, the insider now owns 8,908 shares of the company’s stock, valued at $2,505,375. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Joseph M. Erlinger sold 4,583 shares of McDonald’s stock in a transaction dated Friday, December 22nd. The stock was sold at an average price of $290.70, for a total value of $1,332,278.10. Following the completion of the transaction, the insider now directly owns 8,187 shares of the company’s stock, valued at approximately $2,379,960.90. The disclosure for this sale can be found here. 0.18% of the stock is owned by company insiders.

Hedge Funds Weigh In On McDonald’s

Large investors have recently modified their holdings of the stock. Signature Resources Capital Management LLC bought a new stake in shares of McDonald’s during the 4th quarter valued at about $31,000. Blue Bell Private Wealth Management LLC raised its holdings in shares of McDonald’s by 51.9% during the 3rd quarter. Blue Bell Private Wealth Management LLC now owns 123 shares of the fast-food giant’s stock worth $32,000 after acquiring an additional 42 shares in the last quarter. Spartan Planning & Wealth Management purchased a new stake in shares of McDonald’s during the 3rd quarter worth approximately $33,000. Horizon Bancorp Inc. IN raised its holdings in shares of McDonald’s by 160.0% during the 2nd quarter. Horizon Bancorp Inc. IN now owns 117 shares of the fast-food giant’s stock worth $35,000 after acquiring an additional 72 shares in the last quarter. Finally, Retirement Group LLC purchased a new stake in shares of McDonald’s during the 4th quarter worth approximately $37,000. Hedge funds and other institutional investors own 67.60% of the company’s stock.

About McDonald’s

(Get Free Report)

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. The company's restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, fries, salads, shakes, frozen desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, and beverages and other beverages, as well as breakfast menu, including muffins, Sausages, biscuit and bagel sandwiches, oatmeal, hash browns, breakfast burritos and hotcakes.

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Analyst Recommendations for McDonald's (NYSE:MCD)

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