Citigroup Cuts McDonald’s (NYSE:MCD) Price Target to $335.00

McDonald’s (NYSE:MCD) had its target price lowered by equities research analysts at Citigroup from $375.00 to $335.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has a “buy” rating on the fast-food giant’s stock. Citigroup’s price target suggests a potential upside of 24.96% from the stock’s current price.

MCD has been the topic of several other research reports. JPMorgan Chase & Co. reduced their price objective on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. Evercore set a $350.00 target price on shares of McDonald’s in a research note on Friday, May 8th. Royal Bank Of Canada reiterated a “sector perform” rating on shares of McDonald’s in a report on Tuesday, June 23rd. Erste Group Bank cut shares of McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Finally, Barclays dropped their price objective on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Fifteen research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company. According to data from MarketBeat, McDonald’s has an average rating of “Moderate Buy” and an average target price of $336.35.

McDonald’s Trading Down 0.3%

McDonald’s stock traded down $0.86 during midday trading on Wednesday, hitting $268.08. The stock had a trading volume of 1,489,263 shares, compared to its average volume of 3,762,750. McDonald’s has a 52-week low of $264.53 and a 52-week high of $341.75. The company has a market capitalization of $190.47 billion, a PE ratio of 22.09, a P/E/G ratio of 2.83 and a beta of 0.41. The firm’s fifty day moving average is $277.82 and its two-hundred day moving average is $301.17.

McDonald’s (NYSE:MCD) last released its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating analysts’ consensus estimates of $2.74 by $0.09. The company had revenue of $6.52 billion for the quarter, compared to analysts’ expectations of $6.47 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. McDonald’s’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.67 EPS. As a group, equities research analysts predict that McDonald’s will post 12.9 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 8,681 shares of company stock valued at $2,456,440. 0.26% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On McDonald’s

A number of institutional investors and hedge funds have recently modified their holdings of MCD. Brighton Jones LLC increased its stake in McDonald’s by 21.6% in the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock worth $2,692,000 after buying an additional 1,649 shares during the period. Revolve Wealth Partners LLC boosted its position in McDonald’s by 2.8% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant’s stock valued at $563,000 after buying an additional 52 shares during the period. Sivia Capital Partners LLC grew its stake in McDonald’s by 11.4% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock worth $589,000 after acquiring an additional 206 shares in the last quarter. United Bank increased its position in shares of McDonald’s by 6.0% during the second quarter. United Bank now owns 8,102 shares of the fast-food giant’s stock worth $2,367,000 after acquiring an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. raised its stake in shares of McDonald’s by 2.5% during the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock valued at $3,780,000 after acquiring an additional 312 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald’s News Summary

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

• Positive Sentiment: At around $268, MCD is being highlighted as relatively attractive on valuation versus some peers, which could appeal to investors looking for a lower-priced quality dividend stock. MCD at $268, Starbucks at $106: Buy, Sell or Hold?
• Positive Sentiment: McDonald’s is rolling out new menu items, including a new sauce and other limited-time offerings, which may support consumer interest, traffic, and same-store sales. McDonald’s upgrades McCrispy menu with new sauce
• Positive Sentiment: BT21 Happy Meal promotions and toy tie-ins add another marketing catalyst that could boost family visits and engagement. McDonald’s BT21 Happy Meal out now. Take a look at the new toys
• Neutral Sentiment: Multiple articles about new sauces, snack wraps, and limited-time items reinforce the chain’s product pipeline, but these appear more like incremental menu updates than a major earnings-moving announcement.
• Negative Sentiment: Recent market coverage notes MCD has been slipping and trading at a discount as investors weigh traffic and margin pressure, which may be contributing to near-term weakness. McDonald’s Stock Lags Industry, Trades at a Discount: Time to Buy?

McDonald’s Company Profile

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.