BTIG Research Cuts McDonald’s (NYSE:MCD) Price Target to $350.00

McDonald’s (NYSE:MCD) had its target price trimmed by BTIG Research from $370.00 to $350.00 in a report released on Friday, Marketbeat Ratings reports. The firm currently has a buy rating on the fast-food giant’s stock.

Several other research firms have also recently issued reports on MCD. JPMorgan Chase & Co. lowered their price objective on McDonald’s from $325.00 to $305.00 and set an “overweight” rating for the company in a research report on Monday, May 11th. Rothschild & Co Redburn upgraded McDonald’s from a “sell” rating to a “neutral” rating and boosted their target price for the stock from $260.00 to $306.00 in a research note on Thursday, April 23rd. Sanford C. Bernstein reiterated a “market perform” rating on shares of McDonald’s in a research note on Monday, June 22nd. Barclays cut their price objective on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Finally, Wells Fargo & Company reduced their price objective on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research report on Thursday, July 16th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $334.32.

McDonald’s Stock Down 0.1%

Shares of NYSE MCD opened at $264.46 on Friday. McDonald’s has a 52-week low of $260.96 and a 52-week high of $341.75. The business’s 50 day moving average is $275.99 and its two-hundred day moving average is $298.86. The firm has a market cap of $187.90 billion, a price-to-earnings ratio of 21.80, a PEG ratio of 2.84 and a beta of 0.41.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results 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 analysts’ expectations of $6.47 billion. During the same quarter in the prior year, the company earned $2.67 earnings per share. The business’s quarterly revenue was up 9.4% on a year-over-year basis. Analysts anticipate that McDonald’s will post 12.86 EPS for the current fiscal year.

McDonald’s Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be issued a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Tuesday, September 1st. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.

Insiders Place Their Bets

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction dated 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 completion of the sale, the insider owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’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 value of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 8,348 shares of company stock valued at $2,355,634. 0.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC increased its position in McDonald’s by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock worth $2,692,000 after purchasing an additional 1,649 shares during the last quarter. Revolve Wealth Partners LLC grew its stake in shares of McDonald’s by 2.8% during 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 increased its holdings in shares of McDonald’s by 11.4% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock worth $589,000 after buying an additional 206 shares during the last quarter. United Bank raised its position in shares of McDonald’s by 6.0% in the 2nd quarter. United Bank now owns 8,102 shares of the fast-food giant’s stock worth $2,367,000 after buying an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. raised its position in shares of McDonald’s by 2.5% in the 2nd quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock worth $3,780,000 after buying an additional 312 shares during the period. Institutional investors and hedge funds own 70.29% of the company’s stock.

More McDonald’s News

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

• Positive Sentiment: McDonald’s announced a quarterly dividend of $1.86 per share, reinforcing its reputation as a steady income stock and highlighting continued cash generation. McDONALD’S ANNOUNCES QUARTERLY CASH DIVIDEND
• Positive Sentiment: BTIG Research kept a buy rating on McDonald’s and said the stock still offers meaningful upside, even after cutting its price target to $350 from $370. Benzinga
• Positive Sentiment: Recent consumer-focused coverage around McValue packs, online availability, and a new dipping sauce suggests McDonald’s is still leaning on value-driven promotions and menu innovation to drive traffic. Here’s what’s new at McDonald’s this week
• Neutral Sentiment: Media coverage highlighting McDonald’s new McValue packs and online ordering is more promotional than financial, so it may help awareness but does not yet prove a material sales lift. McDonald’s McValue packs now available online. Here’s how to score one
• Neutral Sentiment: Analysts and media continue to frame McDonald’s as a defensive dividend name, but that alone is not enough to offset broader concerns about consumer spending. These 4 Dividend Stocks Are Money-Printing Machines
• Negative Sentiment: New research indicates restaurant customers remain highly price sensitive despite lower gas prices, which is a warning sign for traffic and margins at McDonald’s. McDonald’s (MCD) Faces Stubborn Price Sensitive Traffic Despite Lower Gas Prices
• Negative Sentiment: McDonald’s recently hit a new 52-week low, and commentary around the stock suggests investors are waiting for the August 4 earnings report before buying the dip. McDonald’s Just Hit a New 52-Week Low. Don’t Buy the Dip Until After August 4.
• Negative Sentiment: StockTwits-style coverage also points to McDonald’s trading near 52-week lows amid broader concerns about weakening consumer demand. Why Did PEGA, ISRG, MCD Stocks Plunge To 52-Week Lows Today?

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.