McDonald’s (NYSE:MCD) Reaches New 12-Month High – Here’s Why

McDonald’s Co. (NYSE:MCD)’s stock price hit a new 52-week high during trading on Monday . The stock traded as high as $317.50 and last traded at $317.50, with a volume of 7841 shares traded. The stock had previously closed at $316.56.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on MCD shares. BMO Capital Markets decreased their price objective on shares of McDonald’s from $330.00 to $315.00 and set an “outperform” rating for the company in a research note on Tuesday, July 30th. Deutsche Bank Aktiengesellschaft lowered their target price on shares of McDonald’s from $295.00 to $290.00 and set a “buy” rating on the stock in a research report on Tuesday, July 30th. Barclays reduced their price target on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research report on Tuesday, July 30th. Wedbush reissued an “outperform” rating and set a $295.00 price objective on shares of McDonald’s in a research report on Monday, July 29th. Finally, TD Cowen upped their target price on shares of McDonald’s from $280.00 to $300.00 and gave the company a “hold” rating in a report on Wednesday, October 16th. Ten investment analysts have rated the stock with a hold rating and twenty have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $315.69.

McDonald’s Stock Up 0.3 %

The company has a market capitalization of $228.82 billion, a PE ratio of 26.87, a PEG ratio of 4.05 and a beta of 0.73. The stock’s fifty day simple moving average is $294.62 and its 200-day simple moving average is $273.69.

McDonald’s (NYSE:MCD) last posted its earnings results on Monday, July 29th. The fast-food giant reported $2.97 earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $6.49 billion for the quarter, compared to analysts’ expectations of $6.62 billion. During the same quarter last year, the business posted $3.17 earnings per share. The business’s revenue was down .1% compared to the same quarter last year. Analysts expect that McDonald’s Co. will post 11.71 EPS for the current year.

McDonald’s Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Monday, December 2nd will be paid a $1.77 dividend. This is an increase from McDonald’s’s previous quarterly dividend of $1.67. The ex-dividend date is Monday, December 2nd. This represents a $7.08 annualized dividend and a yield of 2.23%. McDonald’s’s payout ratio is presently 60.10%.

Insider Activity at McDonald’s

In related news, CEO Christopher J. Kempczinski sold 11,727 shares of the stock in a transaction dated Monday, September 23rd. The stock was sold at an average price of $300.03, for a total transaction of $3,518,451.81. Following the transaction, the chief executive officer now directly owns 49,885 shares in the company, valued at approximately $14,966,996.55. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other news, CEO Christopher J. Kempczinski sold 9,291 shares of the company’s stock in a transaction on Friday, September 27th. The stock was sold at an average price of $305.00, for a total transaction of $2,833,755.00. Following the completion of the sale, the chief executive officer now directly owns 43,256 shares in the company, valued at $13,193,080. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Christopher J. Kempczinski sold 11,727 shares of McDonald’s stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $300.03, for a total value of $3,518,451.81. Following the completion of the transaction, the chief executive officer now owns 49,885 shares in the company, valued at $14,966,996.55. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 34,097 shares of company stock valued at $10,221,233. Company insiders own 0.23% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

Large investors have recently modified their holdings of the company. Dixon Mitchell Investment Counsel Inc. acquired a new stake in McDonald’s during the 1st quarter worth approximately $28,000. Kings Path Partners LLC acquired a new stake in shares of McDonald’s in the second quarter worth $38,000. Keener Financial Planning LLC raised its stake in shares of McDonald’s by 32.3% in the 1st quarter. Keener Financial Planning LLC now owns 176 shares of the fast-food giant’s stock valued at $50,000 after acquiring an additional 43 shares during the period. Opal Wealth Advisors LLC acquired a new position in shares of McDonald’s during the 2nd quarter valued at $59,000. Finally, Bbjs Financial Advisors LLC acquired a new stake in McDonald’s in the 2nd quarter valued at $65,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

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.