Morgan Stanley Cuts McDonald’s (NYSE:MCD) Price Target to $334.00

McDonald’s (NYSE:MCDFree Report) had its price objective reduced by Morgan Stanley from $335.00 to $334.00 in a research note released on Tuesday morning,Benzinga reports. Morgan Stanley currently has an equal weight rating on the fast-food giant’s stock.

A number of other research analysts have also recently weighed in on the stock. KeyCorp dropped their price objective on shares of McDonald’s from $354.00 to $345.00 and set an “overweight” rating for the company in a report on Monday. Argus upgraded shares of McDonald’s from a “hold” rating to a “buy” rating and set a $380.00 price objective for the company in a report on Friday, February 13th. Piper Sandler lifted their price objective on shares of McDonald’s from $323.00 to $325.00 and gave the company a “neutral” rating in a report on Thursday, February 12th. Citigroup lifted their price objective on shares of McDonald’s from $371.00 to $375.00 and gave the company a “buy” rating in a report on Thursday, February 12th. Finally, Weiss Ratings restated a “buy (b-)” rating on shares of McDonald’s in a report on Wednesday, January 28th. Seventeen equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $340.93.

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McDonald’s Stock Performance

Shares of MCD stock opened at $302.82 on Tuesday. The stock has a market capitalization of $215.25 billion, a P/E ratio of 25.34, a price-to-earnings-growth ratio of 2.71 and a beta of 0.53. The company has a 50 day moving average price of $317.71 and a 200 day moving average price of $311.81. McDonald’s has a fifty-two week low of $283.47 and a fifty-two week high of $341.75.

McDonald’s (NYSE:MCDGet Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share for the quarter, beating analysts’ consensus estimates of $3.05 by $0.07. The firm had revenue of $7.01 billion during the quarter, compared to analysts’ expectations of $6.81 billion. McDonald’s had a net margin of 31.85% and a negative return on equity of 343.90%. The business’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.83 earnings per share. On average, research analysts forecast that McDonald’s will post 13.22 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were paid a $1.86 dividend. The ex-dividend date was Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a yield of 2.5%. McDonald’s’s payout ratio is currently 62.26%.

Insider Activity

In related news, CEO Christopher J. Kempczinski sold 26,277 shares of McDonald’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $331.35, for a total value of $8,706,883.95. Following the completion of the transaction, the chief executive officer owned 22,900 shares in the company, valued at $7,587,915. The trade was a 53.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CMO Edith Morgan Flatley sold 4,692 shares of McDonald’s stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $331.00, for a total transaction of $1,553,052.00. Following the completion of the transaction, the chief marketing officer owned 6,200 shares of the company’s stock, valued at $2,052,200. This represents a 43.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 71,990 shares of company stock worth $23,824,113 over the last three months. Insiders own 0.26% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in shares of McDonald’s by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock worth $22,112,675,000 after buying an additional 703,458 shares during the last quarter. State Street Corp lifted its position in shares of McDonald’s by 2.7% during the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock worth $10,997,789,000 after buying an additional 959,140 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of McDonald’s by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock worth $5,195,965,000 after buying an additional 76,090 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of McDonald’s by 3.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant’s stock worth $2,895,768,000 after buying an additional 277,617 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of McDonald’s during the 4th quarter worth approximately $2,890,438,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s News Summary

Here are the key news stories impacting McDonald’s this week:

McDonald’s Company Profile

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McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.

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