McDonald’s (NYSE:MCD) Hits New 12-Month Low – Here’s Why

McDonald’s Corporation (NYSE:MCD)’s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $263.65 and last traded at $263.7580, with a volume of 3455401 shares traded. The stock had previously closed at $267.64.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: Several analyst-style articles were more bullish on McDonald’s, with one calling the recent sell-off an opportunity and another upgrading the stock on the view that its consistency deserves a higher valuation. These pieces suggest some investors see room for a rebound if recent growth momentum continues. Article Title
• Positive Sentiment: McDonald’s continues to roll out limited-time menu items, including new breakfast biscuits, a honey brown butter biscuit, a Caesar menu, and a sweet makeover of a classic breakfast sandwich. Product innovation can help drive traffic and support same-store sales. Article Title
• Neutral Sentiment: Media coverage highlighting customer complaints and mixed reactions to new items may remind investors that McDonald’s still faces execution risk around menu innovation and customer satisfaction, but these stories do not appear to be a major fundamental change on their own. Article Title
• Neutral Sentiment: Some recent coverage is largely consumer-interest oriented, including reviews of new sauces and drink items, which may support brand visibility but likely has limited immediate impact on earnings expectations. Article Title
• Negative Sentiment: One article frames McDonald’s as still not attractive enough for some investors, while another says the stock’s recent sell-off and underperformance are creating debate rather than clear conviction. That skepticism can pressure sentiment even after a strong long-term run. Article Title

Analyst Upgrades and Downgrades

MCD has been the subject of several research reports. Weiss Ratings lowered shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Barclays dropped their price objective on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. KeyCorp reaffirmed an “overweight” rating on shares of McDonald’s in a report on Wednesday, July 15th. Rothschild & Co Redburn upgraded shares of McDonald’s from a “sell” rating to a “neutral” rating and lifted their price target for the stock from $260.00 to $306.00 in a research note on Thursday, April 23rd. Finally, BTIG Research reissued a “buy” rating and set a $370.00 price objective on shares of McDonald’s in a research report on Thursday, May 7th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $336.32.

McDonald’s Stock Performance

The stock has a market capitalization of $187.40 billion, a PE ratio of 21.74, a PEG ratio of 2.78 and a beta of 0.41. The stock has a 50-day moving average price of $276.94 and a two-hundred day moving average price of $299.99.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.74 by $0.09. The company had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The firm’s revenue was up 9.4% on a year-over-year basis. During the same period in the previous year, the company posted $2.67 EPS. As a group, equities analysts predict that McDonald’s Corporation will post 12.86 earnings per share for the current year.

McDonald’s Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were issued a dividend of $1.86 per share. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 annualized dividend and a yield of 2.8%. McDonald’s’s payout ratio is currently 61.34%.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This represents a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 8,681 shares of company stock valued at $2,456,440. Company insiders own 0.26% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

A number of institutional investors and hedge funds have recently bought and sold shares of MCD. Your Advocates Ltd. LLP bought a new position in shares of McDonald’s in the fourth quarter worth about $27,000. Park Place Capital Corp raised its stake in McDonald’s by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after purchasing an additional 45 shares during the period. IFC & Insurance Marketing Inc. purchased a new position in McDonald’s in the 4th quarter worth approximately $29,000. Abound Financial LLC purchased a new position in McDonald’s in the 4th quarter worth approximately $30,000. Finally, DecisionPoint Financial LLC boosted its stake in McDonald’s by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock worth $31,000 after purchasing an additional 97 shares during the period. 70.29% of the stock is owned by institutional investors.

McDonald’s Company Profile

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.