McDonald’s Co. (NYSE:MCD) Receives $306.11 Average Price Target from Brokerages

Shares of McDonald’s Co. (NYSE:MCD) have received an average recommendation of “Moderate Buy” from the twenty-nine ratings firms that are presently covering the stock, MarketBeat.com reports. Ten analysts have rated the stock with a hold recommendation and nineteen have given a buy recommendation to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $308.22.

A number of analysts have issued reports on MCD shares. Tigress Financial raised their target price on McDonald’s from $355.00 to $360.00 and gave the stock a “buy” rating in a research report on Tuesday, September 3rd. Guggenheim lifted their price objective on McDonald’s from $280.00 to $290.00 and gave the stock a “buy” rating in a report on Friday, August 2nd. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of McDonald’s from $295.00 to $290.00 and set a “buy” rating on the stock in a report on Tuesday, July 30th. Stifel Nicolaus reduced their target price on shares of McDonald’s from $285.00 to $265.00 and set a “hold” rating for the company in a research note on Monday, July 22nd. Finally, Jefferies Financial Group upped their price target on shares of McDonald’s from $310.00 to $330.00 and gave the company a “buy” rating in a research note on Monday, September 9th.

McDonald’s Stock Performance

Shares of NYSE:MCD opened at $303.69 on Monday. The company has a market capitalization of $218.86 billion, a P/E ratio of 25.78, a price-to-earnings-growth ratio of 3.99 and a beta of 0.72. The company’s 50-day moving average is $281.71 and its 200 day moving average is $271.18. McDonald’s has a fifty-two week low of $243.53 and a fifty-two week high of $306.96.

McDonald’s (NYSE:MCD) last released its earnings results on Monday, July 29th. The fast-food giant reported $2.97 earnings per share for the quarter, missing analysts’ consensus estimates of $3.07 by ($0.10). McDonald’s had a net margin of 32.25% and a negative return on equity of 178.68%. The company had revenue of $6.49 billion during the quarter, compared to analysts’ expectations of $6.62 billion. During the same quarter in the previous year, the firm earned $3.17 earnings per share. The firm’s revenue was down .1% compared to the same quarter last year. As a group, research analysts predict that McDonald’s will post 11.69 earnings per share for the current year.

McDonald’s Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be paid a dividend of $1.77 per share. The ex-dividend date of this dividend is Monday, December 2nd. This is an increase from McDonald’s’s previous quarterly dividend of $1.67. This represents a $7.08 annualized dividend and a dividend yield of 2.33%. McDonald’s’s dividend payout ratio (DPR) is 56.71%.

Insider Activity

In related news, insider Joseph M. Erlinger sold 1,098 shares of McDonald’s stock in a transaction on Friday, August 23rd. The shares were sold at an average price of $288.70, for a total value of $316,992.60. Following the transaction, the insider now owns 12,583 shares in the company, valued at approximately $3,632,712.10. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In other news, insider Joseph M. Erlinger sold 1,098 shares of the firm’s stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $288.70, for a total transaction of $316,992.60. Following the transaction, the insider now directly owns 12,583 shares of the company’s stock, valued at $3,632,712.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Marion K. Gross sold 1,498 shares of the business’s stock in a transaction dated Wednesday, July 3rd. The shares were sold at an average price of $248.26, for a total value of $371,893.48. Following the completion of the sale, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at approximately $387,285.60. The disclosure for this sale can be found here. In the last 90 days, insiders sold 33,249 shares of company stock valued at $9,865,866. Corporate insiders own 0.23% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Dixon Mitchell Investment Counsel Inc. purchased a new position in shares of McDonald’s in the first quarter valued at about $28,000. Clear Investment Research LLC purchased a new position in McDonald’s during the 4th quarter valued at about $38,000. Kings Path Partners LLC purchased a new position in McDonald’s during the 2nd quarter valued at about $38,000. Accent Capital Management LLC bought a new position in McDonald’s during the 4th quarter valued at approximately $44,000. Finally, Transcendent Capital Group LLC purchased a new stake in McDonald’s in the 4th quarter worth approximately $45,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald’s Company Profile

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.