McDonald’s Corporation (NYSE:MCD) Receives Consensus Recommendation of “Moderate Buy” from Analysts

McDonald’s Corporation (NYSE:MCD) has earned an average rating of “Moderate Buy” from the twenty-seven research firms that are covering the stock, MarketBeat reports. Eleven equities research analysts have rated the stock with a hold recommendation, fifteen have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $322.9583.

Several equities research analysts have commented on MCD shares. Guggenheim cut their price objective on McDonald’s from $320.00 to $290.00 and set a “neutral” rating for the company in a research note on Wednesday, August 5th. Argus decreased their target price on McDonald’s from $320.00 to $310.00 and set a “buy” rating on the stock in a research report on Wednesday, August 26th. Piper Sandler set a $286.00 price target on McDonald’s in a research report on Tuesday, August 4th. Royal Bank Of Canada reduced their price objective on McDonald’s from $305.00 to $295.00 and set a “sector perform” rating for the company in a research note on Wednesday, August 5th. Finally, Wells Fargo & Company decreased their price objective on McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a report on Thursday, July 16th.

McDonald’s Stock Performance

NYSE:MCD opened at $265.05 on Monday. The stock has a market capitalization of $187.56 billion, a PE ratio of 21.53, a P/E/G ratio of 2.97 and a beta of 0.41. McDonald’s has a fifty-two week low of $259.85 and a fifty-two week high of $341.75. The company has a fifty day moving average of $270.67 and a two-hundred day moving average of $291.48.

McDonald’s (NYSE:MCD) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business had revenue of $7.10 billion during the quarter, compared to analysts’ expectations of $7.13 billion. During the same quarter in the previous year, the company earned $3.19 earnings per share. The company’s quarterly revenue was up 3.7% on a year-over-year basis. Research analysts forecast that McDonald’s will post 12.87 earnings per share for the current year.

McDonald’s Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be given a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio is 60.44%.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is bringing back Spicy McNuggets for a limited time beginning September 1. Strong customer demand, including calls to make the item permanent, could support traffic and promotional sales if the relaunch attracts visits. McDonald’s is bringing back a popular menu favorite
• Positive Sentiment: Articles highlighting McDonald’s long-term shareholder returns, dividend contribution and franchise-heavy business model reinforce the company’s reputation for steady cash generation and shareholder distributions. These are supportive long-term themes, although they are unlikely to create an immediate trading catalyst. McDonald’s long-term investment returns
• Neutral Sentiment: Coverage of McDonald’s menu items—including a limited-time meal, international chicken offerings, breakfast preparation and comparisons with Chick-fil-A and Burger King—may help maintain brand engagement, but provides no new financial guidance or evidence of changing companywide sales trends. Comparison of Chick-fil-A and McDonald’s chicken
• Negative Sentiment: The most market-relevant report says MCD touched a 52-week low amid declining guest counts. The Spicy McNuggets comeback is being positioned as a traffic-recovery effort, but a limited-time promotion may not resolve broader affordability and demand pressures. McDonald’s stock reaches a 52-week low
• Negative Sentiment: A valuation review characterizes McDonald’s shares as roughly fairly priced, with intrinsic value near the current level and limited potential for multiple expansion. That suggests investors may need improving traffic and comparable sales—not merely menu promotions—to drive meaningful upside. McDonald’s stock valuation review

Insider Buying and Selling at McDonald’s

In other news, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 0.26% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Brighton Jones LLC boosted its position in shares of McDonald’s by 21.6% during the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock valued at $2,692,000 after acquiring an additional 1,649 shares during the last quarter. Revolve Wealth Partners LLC increased its position in McDonald’s by 2.8% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant’s stock worth $563,000 after purchasing an additional 52 shares during the last quarter. Sivia Capital Partners LLC raised its stake in McDonald’s by 11.4% during the second quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock worth $589,000 after purchasing an additional 206 shares during the period. United Bank raised its stake in McDonald’s by 6.0% during the second quarter. United Bank now owns 8,102 shares of the fast-food giant’s stock worth $2,367,000 after purchasing an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. boosted its holdings in McDonald’s by 2.5% in the 2nd quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock valued at $3,780,000 after purchasing an additional 312 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

About McDonald’s

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.