Loop Capital Reaffirms “Buy” Rating for McDonald’s (NYSE:MCD)

Loop Capital restated their buy rating on shares of McDonald’s (NYSE:MCD) in a report released on Tuesday morning, Benzinga reports. Loop Capital currently has a $342.00 price target on the fast-food giant’s stock.

A number of other brokerages also recently weighed in on MCD. Jefferies Financial Group boosted their target price on shares of McDonald’s from $310.00 to $330.00 and gave the stock a buy rating in a research note on Monday. The Goldman Sachs Group assumed coverage on shares of McDonald’s in a research report on Thursday, June 13th. They issued a neutral rating and a $288.00 price objective for the company. Wedbush reiterated an outperform rating and issued a $295.00 price objective on shares of McDonald’s in a research report on Monday, July 29th. Bank of America dropped their target price on McDonald’s from $288.00 to $278.00 and set a neutral rating for the company in a research report on Tuesday, July 30th. Finally, Citigroup decreased their price target on McDonald’s from $280.00 to $275.00 and set a neutral rating on the stock in a report on Tuesday, July 30th. Eleven equities research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of Moderate Buy and an average price target of $304.41.

McDonald’s Price Performance

Shares of MCD opened at $292.35 on Tuesday. The company has a market capitalization of $210.69 billion, a P/E ratio of 24.82, a PEG ratio of 3.87 and a beta of 0.72. McDonald’s has a one year low of $243.53 and a one year high of $302.39. The business’s 50 day simple moving average is $271.99 and its 200-day simple moving average is $270.81.

McDonald’s (NYSE:MCD) last announced its earnings results on Monday, July 29th. The fast-food giant reported $2.97 EPS for the quarter, missing the consensus estimate of $3.07 by ($0.10). McDonald’s had a negative return on equity of 178.68% and a net margin of 32.25%. The business had revenue of $6.49 billion for the quarter, compared to the consensus estimate of $6.62 billion. During the same quarter in the previous year, the company posted $3.17 EPS. McDonald’s’s revenue for the quarter was down .1% on a year-over-year basis. On average, sell-side analysts anticipate that McDonald’s will post 11.67 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 17th. Investors of record on Tuesday, September 3rd will be issued a dividend of $1.67 per share. The ex-dividend date is Tuesday, September 3rd. This represents a $6.68 dividend on an annualized basis and a dividend yield of 2.28%. McDonald’s’s payout ratio is 56.71%.

Insider Activity at McDonald’s

In other McDonald’s news, EVP Marion K. Gross sold 1,498 shares of the stock in a transaction dated Wednesday, July 3rd. The stock was sold at an average price of $248.26, for a total transaction of $371,893.48. Following the completion of the transaction, the executive vice president now owns 1,560 shares in the company, valued at approximately $387,285.60. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In other news, insider Joseph M. Erlinger sold 1,099 shares of the firm’s stock in a transaction that occurred on Tuesday, July 23rd. The shares were sold at an average price of $260.00, for a total transaction of $285,740.00. Following the completion of the transaction, the insider now directly owns 13,681 shares of the company’s stock, valued at approximately $3,557,060. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Marion K. Gross sold 1,498 shares of McDonald’s stock in a transaction that occurred on Wednesday, July 3rd. The shares were sold at an average price of $248.26, for a total transaction of $371,893.48. Following the completion of the sale, the executive vice president now owns 1,560 shares in the company, valued at $387,285.60. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 6,291 shares of company stock valued at $1,689,073. 0.23% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in MCD. Dixon Mitchell Investment Counsel Inc. bought a new position in shares of McDonald’s in the 1st quarter valued at about $28,000. Clear Investment Research LLC bought a new stake in shares of McDonald’s during the 4th quarter worth approximately $38,000. Atlantic Edge Private Wealth Management LLC acquired a new stake in shares of McDonald’s in the 4th quarter valued at approximately $39,000. Kings Path Partners LLC bought a new position in shares of McDonald’s in the second quarter valued at $38,000. Finally, Accent Capital Management LLC acquired a new position in McDonald’s during the fourth quarter worth $44,000. Institutional investors own 70.29% of the company’s stock.

About McDonald’s

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.