McDonald’s (NYSE:MCD) Trading Down 1.7% – What’s Next?

McDonald’s Corporation (NYSE:MCD)’s share price was down 1.7% during mid-day trading on Wednesday . The company traded as low as $247.83 and last traded at $248.5720. Approximately 7,105,765 shares were traded during mid-day trading, an increase of 79% from the average session volume of 3,971,746 shares. The stock had previously closed at $252.78.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: BTIG Research reaffirmed its Buy rating and set a $350 price target, implying substantial upside from recent levels. The firm’s bullish view supports the argument that McDonald’s long-term recovery remains intact. McDonald’s analyst rating and strategy article
• Positive Sentiment: Analysts expect McDonald’s to emphasize menu innovation, restaurant remodels, digital ordering and delivery at Investor Day. Its delivery platform generates approximately $20 billion in systemwide sales, while management aims to route 30% of delivery orders through its own app by the end of 2027. McDonald’s delivery and app strategy article
• Positive Sentiment: Promotions—including the World Heist menu in the U.K., National Cheeseburger Day offers and entertainment-themed Happy Meals—could support customer traffic and engagement, although their financial impact is uncertain. McDonald’s World Heist menu article
• Neutral Sentiment: RBC expects McDonald’s to introduce new financial targets through 2030 at Investor Day. Those targets could clarify the growth outlook, but investors may react negatively if they fall short of expectations. McDonald’s potential 2030 targets article
• Negative Sentiment: Jefferies reduced its price target to $325 from $350 while maintaining its positive stance, indicating that management still must convince investors a sales recovery is achievable. Jefferies McDonald’s price target article
• Negative Sentiment: Analysts cited weak execution, difficult operating conditions and a delayed recovery. Value promotions such as discounted Big Mac meals may help demand but could pressure franchisee margins, particularly as fuel and supply-chain costs rise. McDonald’s value pricing and cost pressures article

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on MCD. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $295.00 price target on shares of McDonald’s in a research note on Wednesday, August 5th. Citigroup boosted their price objective on shares of McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Freedom Capital upgraded shares of McDonald’s from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 5th. UBS Group set a $305.00 target price on shares of McDonald’s in a research report on Wednesday, August 5th. Finally, Royal Bank Of Canada lowered their price target on shares of McDonald’s from $295.00 to $290.00 and set a “sector perform” rating on the stock in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $317.91.

McDonald’s Price Performance

The firm’s 50 day moving average is $266.66 and its two-hundred day moving average is $285.37. The firm has a market capitalization of $175.90 billion, a P/E ratio of 20.19, a PEG ratio of 2.78 and a beta of 0.41.

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 company’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.19 earnings per share. Analysts anticipate that McDonald’s Corporation will post 12.88 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a dividend yield of 3.0%. McDonald’s’s payout ratio is currently 60.44%.

Hedge Funds Weigh In On McDonald’s

Hedge funds and other institutional investors have recently bought and sold shares of the business. Ascentis Wealth Management LLC raised its position in McDonald’s by 4,008.8% during the 2nd quarter. Ascentis Wealth Management LLC now owns 84,230 shares of the fast-food giant’s stock worth $22,768,000 after purchasing an additional 82,180 shares during the last quarter. Borer Denton & Associates Inc. grew its position in shares of 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 buying an additional 2,000 shares during the last quarter. Peterson Wealth Services increased its stake in shares of McDonald’s by 3,294.5% in the fourth quarter. Peterson Wealth Services now owns 11,779 shares of the fast-food giant’s stock valued at $3,600,000 after buying an additional 11,432 shares during the period. HighTower Advisors LLC raised its position in shares of McDonald’s by 7.1% during the second quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock worth $397,822,000 after acquiring an additional 97,060 shares during the last quarter. Finally, Harbour Investments Inc. raised its position in shares of McDonald’s by 84.4% during the fourth quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant’s stock worth $10,853,000 after acquiring an additional 16,252 shares during the last quarter. Institutional investors own 70.29% of the company’s stock.

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.