Royal Bank Of Canada Lowers McDonald’s (NYSE:MCD) Price Target to $285.00

McDonald’s (NYSE:MCD) had its price target reduced by analysts at Royal Bank Of Canada from $290.00 to $285.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a “sector perform” rating on the fast-food giant’s stock. Royal Bank Of Canada’s target price would indicate a potential upside of 18.94% from the company’s current price.

Other equities research analysts have also issued reports about the company. Guggenheim reduced their price target on McDonald’s from $320.00 to $290.00 and set a “neutral” rating for the company in a report on Wednesday, August 5th. Needham & Company LLC reiterated a “buy” rating on shares of McDonald’s in a report on Monday. Freedom Capital raised McDonald’s from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 5th. BTIG Research decreased their price target on shares of McDonald’s from $350.00 to $295.00 and set a “buy” rating on the stock in a research note on Thursday. Finally, Piper Sandler set a $286.00 target price on shares of McDonald’s in a research report on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $311.25.

McDonald’s Stock Up 0.5%

NYSE:MCD opened at $239.61 on Thursday. McDonald’s has a 52-week low of $234.03 and a 52-week high of $341.75. The firm has a market cap of $169.56 billion, a P/E ratio of 19.50, a PEG ratio of 2.71 and a beta of 0.41. The business’s 50-day moving average price is $263.58 and its 200 day moving average price is $281.71.

McDonald’s (NYSE:MCD) last posted its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. The firm had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $3.19 earnings per share. Sell-side analysts expect that McDonald’s will post 12.88 EPS for the current year.

Institutional Trading of McDonald’s

A number of institutional investors and hedge funds have recently modified their holdings of MCD. Sound Income Strategies LLC boosted its position in shares of McDonald’s by 0.6% in the 1st quarter. Sound Income Strategies LLC now owns 5,590 shares of the fast-food giant’s stock worth $1,718,000 after buying an additional 35 shares in the last quarter. Jacobsen Capital Management raised its position in McDonald’s by 2.9% during the first quarter. Jacobsen Capital Management now owns 1,267 shares of the fast-food giant’s stock worth $394,000 after acquiring an additional 36 shares during the last quarter. Sterling Investment Counsel LLC lifted its holdings in shares of McDonald’s by 0.7% in the first quarter. Sterling Investment Counsel LLC now owns 5,303 shares of the fast-food giant’s stock valued at $1,648,000 after purchasing an additional 37 shares in the last quarter. Legacy Wealth Managment LLC ID grew its holdings in McDonald’s by 11.0% during the 1st quarter. Legacy Wealth Managment LLC ID now owns 372 shares of the fast-food giant’s stock valued at $116,000 after buying an additional 37 shares during the last quarter. Finally, Millington Financial Advisors LLC increased its position in McDonald’s by 2.2% during the fourth quarter. Millington Financial Advisors LLC now owns 1,737 shares of the fast-food giant’s stock worth $568,000 after buying an additional 38 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

Trending Headlines about McDonald’s

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

• Positive Sentiment: BTIG maintains a Buy rating: BTIG lowered its price target from $350 to $295 but still sees approximately 23.9% upside, suggesting the recent selloff may be excessive. BTIG lowers McDonald’s price target and maintains Buy rating
• Positive Sentiment: Dividend support remains attractive: McDonald’s raised its dividend by nearly 4%, reinforcing its appeal as a long-standing dividend-growth company. Some analysts argue that the market is undervaluing the company’s durable franchising model and shareholder returns. McDonald’s increased its dividend by nearly 4%
• Positive Sentiment: NEXT strategy could improve longer-term growth: McDonald’s plans to invest $8.5 billion through 2036 in restaurant remodels, employee training, technology, AI-enabled ordering, and franchisee support. New grilled-chicken products, protein-focused meals, smaller portions and beverage offerings are intended to attract health-conscious customers, including users of GLP-1 medications. McDonald’s outlines $8.5 billion franchisee support plan
• Positive Sentiment: Potential advertising revenue: The company is testing a media network that could eventually become a $1 billion advertising business, adding a higher-margin revenue stream beyond restaurant sales. Why McDonald’s is building an advertising business

McDonald’s Company Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.