Citigroup Issues Positive Forecast for McDonald’s (NYSE:MCD) Stock Price

McDonald’s (NYSE:MCD) had its price target raised by Citigroup from $295.00 to $315.00 in a research note released on Thursday,Benzinga reports. They currently have a buy rating on the fast-food giant’s stock.

MCD has been the topic of a number of other research reports. Seaport Research Partners assumed coverage on McDonald’s in a research report on Wednesday, September 16th. They issued a “neutral” rating on the stock. Robert W. Baird decreased their target price on shares of McDonald’s from $285.00 to $250.00 and set a “neutral” rating for the company in a research report on Thursday, September 24th. Wells Fargo & Company increased their price objective on shares of McDonald’s from $270.00 to $300.00 and gave the stock an “overweight” rating in a research report on Thursday. TD Cowen upped their price target on shares of McDonald’s from $270.00 to $285.00 and gave the company a “hold” rating in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft lowered their price objective on McDonald’s from $325.00 to $300.00 and set a “buy” rating for the company in a research report on Monday, September 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, McDonald’s presently has a consensus rating of “Moderate Buy” and a consensus price target of $297.52.

McDonald’s Stock Performance

NYSE MCD opened at $278.06 on Thursday. The firm’s fifty day moving average price is $248.43 and its two-hundred day moving average price is $282.70. The stock has a market cap of $196.77 billion, a PE ratio of 22.00, a PEG ratio of 3.20 and a beta of 0.42. McDonald’s has a fifty-two week low of $229.20 and a fifty-two week high of $341.75.

McDonald’s (NYSE:MCD) last posted its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 EPS for the quarter, beating the consensus estimate of $3.38 by $0.19. The firm had revenue of $7.16 billion during the quarter, compared to the consensus estimate of $7.28 billion. McDonald’s had a negative return on equity of 671.56% and a net margin of 32.38%. The business’s quarterly revenue was up 1.1% on a year-over-year basis. During the same period last year, the company earned $3.22 earnings per share. As a group, sell-side analysts predict that McDonald’s will post 12.83 earnings per share for the current fiscal year.

McDonald’s Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be given a dividend of $1.93 per share. The ex-dividend date of this dividend is Tuesday, December 1st. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a dividend yield of 2.8%. McDonald’s’s payout ratio is 61.08%.

Hedge Funds Weigh In On McDonald’s

Several institutional investors have recently modified their holdings of the business. Endeavor Private Wealth Inc. acquired a new position in shares of McDonald’s in the 3rd quarter valued at about $339,000. Banyan Capital Management Inc. acquired a new position in McDonald’s in the third quarter valued at approximately $476,000. Maryland State Retirement & Pension System grew its stake in shares of McDonald’s by 13.9% during the 3rd quarter. Maryland State Retirement & Pension System now owns 43,717 shares of the fast-food giant’s stock worth $10,096,000 after purchasing an additional 5,347 shares during the period. UNIVEST FINANCIAL Corp lifted its stake in shares of McDonald’s by 18.1% in the 3rd quarter. UNIVEST FINANCIAL Corp now owns 17,311 shares of the fast-food giant’s stock valued at $3,998,000 after purchasing an additional 2,659 shares during the period. Finally, NBH Bank boosted its holdings in McDonald’s by 2.8% during the third quarter. NBH Bank now owns 4,854 shares of the fast-food giant’s stock worth $1,121,000 after buying an additional 131 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald’s News Roundup

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

• Positive Sentiment: Third-quarter adjusted EPS of $3.57 topped estimates, supported by stronger franchised margins and international performance. The company also said U.S. sales improved as the quarter progressed. Article: McDonald’s Q3 Earnings Beat, but U.S. Traffic Still Pressures Growth
• Positive Sentiment: McDonald’s is testing value-menu options at about 1,900 U.S. restaurants, with a possible nationwide launch in early 2027. The initiative, alongside digital deals, is intended to attract budget-conscious customers and revive sales. Article: McDonald’s plans new value menu offerings next year to boost sluggish sales
• Positive Sentiment: Several firms raised their price targets and retained positive ratings: Citi to $315 (Buy), KeyCorp to $307 (Overweight), and Wells Fargo to $300 (Overweight). JPMorgan also lifted its target, to $270, but its target is below the cited share price.
• Neutral Sentiment: McDonald’s will divide its U.S. chief marketing officer’s responsibilities between two executives on an interim basis while searching for a replacement—a leadership change amid efforts to address declining sales. Article: McDonald’s US CMO steps down as sales decline
• Negative Sentiment: Revenue of $7.16 billion missed estimates, and U.S. comparable sales fell 0.2%—the first decline in six quarters—as cost-of-living pressures weigh on customer traffic. This remains a key risk to sustained growth.
• Negative Sentiment: Oppenheimer warned that technical indicators look stretched after shares climbed more than 20%, raising the risk that near-term gains may be difficult to sustain. Article: McDonald’s Stock Rally Runs Into Wall Street Warning

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.