McDonald’s (NYSE:MCD) Sets New 52-Week Low – Time to Sell?

Shares of McDonald’s Corporation (NYSE:MCD) hit a new 52-week low during trading on Monday . The stock traded as low as $271.07 and last traded at $270.8980, with a volume of 2175805 shares trading hands. The stock had previously closed at $278.61.

Trending Headlines about McDonald’s

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

• Positive Sentiment: McDonald’s launched its new “NEXT” strategy, aimed at improving growth and restaurant productivity, which could help support margins and long-term performance. How McDonald’s (MCD) Is Using Its NEXT Strategy to Protect Growth and Restaurant Productivity
• Positive Sentiment: McDonald’s is also getting some brand support from consumer-interest stories, including the return of an iconic McFlurry after 17 years, which may help drive short-term customer excitement. McDonald’s brings back iconic McFlurry for first time in 17 years
• Neutral Sentiment: Several recent articles focused on McDonald’s menu items, hacks, and nostalgia-driven content, which may help keep the brand in the spotlight but are unlikely to materially move the stock on their own.
• Neutral Sentiment: A story noting that Kevin O’Leary’s ETF counts McDonald’s among its top picks reinforces the company’s defensive, dividend-oriented appeal to income investors. How McDonald’s (MCD) Is Using Its NEXT Strategy to Protect Growth and Restaurant Productivity
• Negative Sentiment: Investor attention is still centered on weakness in the stock, with one recent article highlighting that MCD has fallen this year and is trading near its yearly low, signaling concern about growth expectations. What’s Wrong With McDonald’s Stock?
• Negative Sentiment: McDonald’s decision to scrap its popular “Wrap of the Day” promotion after 15 years could weigh on sentiment if customers view it as a value or traffic headwind. McDonald’s is scrapping its popular wrap of the day deal after 15 years

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on MCD. BTIG Research restated a “buy” rating and issued a $370.00 price objective on shares of McDonald’s in a research note on Thursday, May 7th. Cfra upgraded shares of McDonald’s to a “buy” rating in a report on Friday, May 8th. Evercore set a $350.00 target price on shares of McDonald’s in a research report on Friday, May 8th. JPMorgan Chase & Co. decreased their price target on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a report on Monday, May 11th. Finally, Barclays lowered their price target on McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. Sixteen equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $336.26.

McDonald’s Stock Down 2.7%

The company has a market capitalization of $192.54 billion, a P/E ratio of 22.37, a PEG ratio of 2.78 and a beta of 0.41. The firm has a 50-day moving average price of $286.98 and a two-hundred day moving average price of $305.82.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same quarter last year, the company posted $2.67 earnings per share. McDonald’s’s quarterly revenue was up 9.4% on a year-over-year basis. On average, analysts predict that McDonald’s Corporation will post 12.93 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were given a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.7%. The ex-dividend date was Tuesday, June 2nd. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.

Insider Activity

In other news, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 11,307 shares of company stock worth $3,262,622. Insiders own 0.26% of the company’s stock.

Institutional Trading of McDonald’s

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

About McDonald’s

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.