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

McDonald’s Corporation (NYSE:MCD)’s share price hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $259.20 and last traded at $258.0530, with a volume of 361931 shares. The stock had previously closed at $260.95.

Trending Headlines about McDonald’s

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

• Positive Sentiment: McDonald’s is introducing a Texas-exclusive meal with collectible cups featuring Lone Star regions, while also rolling out Spicy Chicken McNuggets. The localized promotion and new menu item could boost visits, sales and social-media engagement. McDonald’s Texas Meal releases with new themed collectible cups
• Positive Sentiment: A SpongeBob and One Piece Happy Meal is scheduled to launch, providing another limited-time offering aimed at families and collectors. Such collaborations may help traffic, although the financial contribution is likely modest. McDonald’s new Happy Meal combines SpongeBob and One Piece
• Neutral Sentiment: Analysts and market coverage continue to focus on whether international markets, menu innovation and loyalty programs can offset softer consumer demand in the U.S. The reports offer a potential growth path but no new earnings guidance or major financial catalyst. Can MCD’s International Markets Drive Growth Amid Consumer Pressure?
• Negative Sentiment: Coverage says McDonald’s discount strategy, including its $3 menu, has not delivered as expected for customers or the company. Persistent affordability concerns and weak promotional economics could pressure traffic, margins and investor sentiment. McDonald’s $3 menu has a problem that hits your wallet hard
• Negative Sentiment: Consumer-focused reports argue that McDonald’s feels increasingly expensive, reinforcing concerns that customers are reducing visits or questioning value. This narrative is particularly unfavorable while the company is relying on deals to stimulate demand. Customers Say McDonald’s Just Isn’t Worth It
• Negative Sentiment: McDonald’s decision not to offer its traditional Pumpkin Spice Latte in the fall has prompted customer backlash, while free-coffee promotions may further raise questions about pricing and profitability. These are brand and margin concerns rather than major fundamental catalysts. McDonald’s axes popular coffee flavor

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on MCD. Sanford C. Bernstein restated a “market perform” rating and issued a $295.00 price objective on shares of McDonald’s in a research report on Wednesday, August 5th. Evercore set a $320.00 target price on McDonald’s in a research report on Thursday, July 23rd. Wells Fargo & Company cut their target price on McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research note on Thursday, July 16th. Argus reduced their price target on McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a report on Wednesday, August 26th. Finally, Citigroup lifted their price target on McDonald’s from $335.00 to $345.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, McDonald’s has an average rating of “Moderate Buy” and an average target price of $322.96.

McDonald’s Price Performance

The stock has a market cap of $183.19 billion, a price-to-earnings ratio of 21.02, a PEG ratio of 2.82 and a beta of 0.41. The company’s 50 day moving average is $270.06 and its 200 day moving average is $290.10.

McDonald’s (NYSE:MCD) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. During the same period last year, the company posted $3.19 earnings per share. The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. Sell-side analysts predict that McDonald’s Corporation will post 12.87 earnings per share for the current year.

McDonald’s Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be issued a $1.86 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.9%. McDonald’s’s dividend payout ratio is currently 60.44%.

Insiders Place Their Bets

In related news, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.26% of the stock is owned by insiders.

Institutional Trading of McDonald’s

Several large investors have recently bought and sold shares of the company. Ascentis Wealth Management LLC boosted its stake in shares of McDonald’s by 4,008.8% during the second quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock valued at $22,768,000 after acquiring an additional 82,180 shares during the last quarter. Borer Denton & Associates Inc. raised its stake in McDonald’s by 16.9% in the 2nd quarter. Borer Denton & Associates Inc. now owns 13,859 shares of the fast-food giant’s stock valued at $3,746,000 after purchasing an additional 2,000 shares during the last quarter. Peterson Wealth Services raised its stake in McDonald’s by 3,294.5% in the 4th quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock valued at $3,600,000 after purchasing an additional 11,432 shares during the last quarter. Harbour Investments Inc. lifted its holdings in McDonald’s by 84.4% in the 4th quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant’s stock valued at $10,853,000 after purchasing an additional 16,252 shares in the last quarter. Finally, Capital International Sarl lifted its holdings in McDonald’s by 10.4% in the 4th quarter. Capital International Sarl now owns 64,256 shares of the fast-food giant’s stock valued at $19,639,000 after purchasing an additional 6,079 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

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.