McDonald’s (NYSE:MCD) Share Price Crosses Below 200 Day Moving Average – Here’s Why

McDonald’s Corporation (NYSE:MCD)’s share price crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $282.16 and traded as low as $274.45. McDonald’s shares last traded at $275.3020, with a volume of 6,856,754 shares.

Key Headlines Impacting McDonald’s

These are some of the MCD headlines that stood out recently:

• Positive Sentiment: An analyst upgrade was reported overnight, providing a potential positive signal on the stock, though the headline does not identify the analyst’s rationale or price target. McDonald’s Stock Price Up 1.8% on Analyst Upgrade
• Positive Sentiment: McDonald’s is rolling out Pokémon Happy Meals and bringing back a popular holiday menu item. These promotions could attract customers and support near-term traffic, although their financial impact is uncertain. McDonald’s rolls out Pokémon Happy Meal
• Negative Sentiment: A market commentary says Treasury yields near 5% are pressuring valuations across stocks. Higher yields can make dividend-paying shares like MCD less attractive relative to bonds and weigh on valuation multiples. Bonds Are Paying 5% Again

Analyst Ratings Changes

MCD has been the topic of a number of recent analyst reports. HSBC began coverage on shares of McDonald’s in a research report on Thursday, November 5th. They issued a “strong-buy” rating on the stock. Oppenheimer decreased their price objective on shares of McDonald’s from $325.00 to $295.00 and set an “outperform” rating for the company in a research report on Thursday, September 24th. Seaport Research Partners started coverage on shares of McDonald’s in a research note on Wednesday, September 16th. They set a “neutral” rating for the company. KeyCorp increased their target price on McDonald’s from $280.00 to $307.00 and gave the company an “overweight” rating in a report on Thursday, November 5th. Finally, Morgan Stanley dropped their target price on McDonald’s from $308.00 to $297.00 and set an “equal weight” rating on the stock in a report on Monday, September 28th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $297.82.

McDonald’s Price Performance

The firm has a 50 day moving average of $249.73 and a two-hundred day moving average of $282.16. The stock has a market cap of $194.30 billion, a PE ratio of 21.78, a PEG ratio of 3.26 and a beta of 0.42.

McDonald’s (NYSE:MCD) last announced its quarterly 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. McDonald’s had a net margin of 32.38% and a negative return on equity of 826.29%. The company had revenue of $7.16 billion for the quarter, compared to analyst estimates of $7.28 billion. During the same period in the prior year, the firm posted $3.22 earnings per share. The firm’s revenue was up 1.1% on a year-over-year basis. As a group, equities analysts anticipate that McDonald’s Corporation will post 12.91 EPS for the current fiscal year.

McDonald’s Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 annualized dividend and a dividend yield of 2.8%. This is a boost from McDonald’s’s previous quarterly dividend of $1.86. McDonald’s’s payout ratio is presently 61.08%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. State Street Corp raised its stake in McDonald’s by 1.8% during the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant’s stock worth $9,752,921,000 after acquiring an additional 646,675 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in McDonald’s in the second quarter valued at $1,359,276,000. Arrowstreet Capital Limited Partnership boosted its stake in McDonald’s by 17.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 3,637,785 shares of the fast-food giant’s stock valued at $1,130,587,000 after acquiring an additional 533,448 shares in the last quarter. Swiss National Bank boosted its stake in McDonald’s by 6.9% in the first quarter. Swiss National Bank now owns 2,089,980 shares of the fast-food giant’s stock valued at $649,545,000 after acquiring an additional 134,480 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its stake in McDonald’s by 3.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,909,321 shares of the fast-food giant’s stock valued at $593,366,000 after acquiring an additional 62,562 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

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.