McDonald’s (NYSE:MCD) Price Target Cut to $310.00 by Analysts at Citigroup

McDonald’s (NYSE:MCD) had its target price cut by Citigroup from $345.00 to $310.00 in a report released on Thursday, Benzinga reports. The firm currently has a “buy” rating on the fast-food giant’s stock. Citigroup’s price objective would indicate a potential upside of 23.99% from the company’s current price.

Other analysts have also recently issued research reports about the company. Mizuho reduced their price target on McDonald’s from $300.00 to $290.00 and set a “neutral” rating for the company in a research report on Friday, July 31st. Royal Bank Of Canada lowered their price objective on McDonald’s from $295.00 to $290.00 and set a “sector perform” rating on the stock in a research report on Tuesday. TD Cowen cut their price objective on McDonald’s from $300.00 to $282.00 and set a “hold” rating for the company in a research note on Friday, September 11th. Wells Fargo & Company reduced their target price on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday, July 16th. Finally, BTIG Research restated a “buy” rating and set a $350.00 target price on shares of McDonald’s in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $316.39.

McDonald’s Trading Up 0.6%

MCD opened at $250.02 on Thursday. The company’s 50 day moving average is $266.07 and its 200 day moving average is $284.76. The company has a market cap of $176.92 billion, a price-to-earnings ratio of 20.27, a PEG ratio of 2.73 and a beta of 0.41. McDonald’s has a 12-month low of $247.83 and a 12-month high of $341.75.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data 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 firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. During the same quarter in the previous year, the firm posted $3.19 EPS. The company’s revenue for the quarter was up 3.7% compared to the same quarter last year. As a group, analysts predict that McDonald’s will post 12.87 EPS for the current fiscal year.

Institutional Investors Weigh In On McDonald’s

Several institutional investors and hedge funds have recently modified their holdings of MCD. State Street Corp increased its holdings in McDonald’s by 2.7% in the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after acquiring an additional 959,140 shares during the last quarter. Geode Capital Management LLC grew its position in shares of McDonald’s by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock valued at $5,195,965,000 after purchasing an additional 76,090 shares in the last quarter. Norges Bank purchased a new position in shares of McDonald’s during the fourth quarter valued at about $2,890,438,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of McDonald’s by 7.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant’s stock valued at $1,699,314,000 after purchasing an additional 384,762 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in shares of McDonald’s by 0.8% in the fourth quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant’s stock worth $1,614,843,000 after purchasing an additional 40,506 shares during the last quarter. Institutional investors own 70.29% of the company’s stock.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: BTIG reaffirmed its Buy rating and $350 price target, implying substantial potential upside from current levels. The call suggests the firm believes McDonald’s brand strength and long-term recovery remain intact.
• Positive Sentiment: Investor Day could provide new growth targets through 2030. RBC expects management to outline updated financial goals, while analysts anticipate emphasis on menu innovation, restaurant remodels and improving execution. A credible plan could help rebuild investor confidence. McDonald’s Likely to Issue New Financial Targets Through 2030 at Investor Day, RBC Says
• Neutral Sentiment: Investors are reassessing whether MCD is reasonably priced. The recent selloff has lowered the valuation, but the key question is whether future cash flow can justify the company’s market value. This creates potential value support but does not resolve concerns about slowing sales. Has McDonald’s Fallen Far Enough to Look Reasonably Priced?
• Neutral Sentiment: McDonald’s Japan is using a new McFlurry promotion tied to a popular virtual creator meme. The campaign may support local engagement, but its financial impact on the global company is likely limited. McDonald’s Japan revives Vtuber Usada Pekora almond meme with new McFlurry flavor
• Negative Sentiment: Jefferies lowered its price target to $325 from $350, citing the need for management to demonstrate that a sales recovery is achievable. The firm retained its positive stance, but the cut reflects continued execution and demand concerns. McDonald’s target falls to $325, but Jefferies keeps faith in recovery
• Negative Sentiment: Analysts continue to point to weak execution, difficult operating conditions and a delayed recovery. Competition from lower-priced and fast-growing chains could further pressure traffic, pricing power and investor confidence.

About McDonald’s

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.