Citigroup Cuts McDonald’s (NYSE:MCD) Price Target to $297.00

McDonald’s (NYSE:MCD) had its price target cut by equities researchers at Citigroup from $312.00 to $297.00 in a report released on Tuesday, Benzinga reports. The firm currently has a “neutral” rating on the fast-food giant’s stock. Citigroup’s price target suggests a potential upside of 11.56% from the company’s current price.

Several other equities analysts have also recently issued reports on MCD. Stephens reiterated an “overweight” rating and set a $320.00 price target on shares of McDonald’s in a research report on Monday, February 5th. Royal Bank of Canada reduced their price objective on McDonald’s from $340.00 to $335.00 and set an “outperform” rating for the company in a research note on Tuesday, February 6th. Robert W. Baird reissued an “outperform” rating and set a $315.00 price objective on shares of McDonald’s in a research note on Tuesday, February 6th. Stifel Nicolaus reduced their price objective on McDonald’s from $315.00 to $300.00 and set a “hold” rating for the company in a research note on Thursday, April 11th. Finally, Oppenheimer reissued a “market perform” rating on shares of McDonald’s in a research note on Friday, January 5th. Nine analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $319.72.

McDonald’s Price Performance

MCD opened at $266.23 on Tuesday. McDonald’s has a 12 month low of $245.73 and a 12 month high of $302.39. The stock has a market cap of $191.95 billion, a P/E ratio of 23.01, a P/E/G ratio of 2.89 and a beta of 0.71. The stock’s 50 day moving average price is $284.60 and its 200 day moving average price is $280.75.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Monday, February 5th. The fast-food giant reported $2.95 earnings per share (EPS) for the quarter, beating 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 company had revenue of $6.41 billion for the quarter, compared to analysts’ expectations of $6.45 billion. During the same period last year, the firm earned $2.59 EPS. The firm’s revenue for the quarter was up 8.1% on a year-over-year basis. Equities analysts anticipate that McDonald’s will post 12.35 EPS for the current year.

Insider Activity at McDonald’s

In related news, insider Joseph M. Erlinger sold 1,099 shares of the business’s stock in a transaction dated Friday, March 22nd. The stock was sold at an average price of $284.38, for a total transaction of $312,533.62. Following the transaction, the insider now directly owns 18,075 shares in the company, valued at $5,140,168.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 0.18% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

Several institutional investors and hedge funds have recently added to or reduced their stakes in MCD. Signature Resources Capital Management LLC acquired a new stake in McDonald’s during the fourth quarter valued at approximately $31,000. Blue Bell Private Wealth Management LLC boosted its holdings in McDonald’s by 51.9% during the third quarter. Blue Bell Private Wealth Management LLC now owns 123 shares of the fast-food giant’s stock valued at $32,000 after purchasing an additional 42 shares in the last quarter. Spartan Planning & Wealth Management acquired a new stake in McDonald’s during the third quarter valued at approximately $33,000. Retirement Group LLC acquired a new stake in McDonald’s during the fourth quarter valued at approximately $37,000. Finally, Clear Investment Research LLC acquired a new stake in McDonald’s during the fourth quarter valued at approximately $38,000. 70.29% of the stock is currently owned by institutional investors.

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.