JPMorgan Chase & Co. Cuts McDonald’s (NYSE:MCD) Price Target to $260.00

McDonald’s (NYSE:MCD) had its price objective lowered by JPMorgan Chase & Co. from $280.00 to $260.00 in a report issued on Thursday morning, MarketBeat Ratings reports. The firm currently has an overweight rating on the fast-food giant’s stock.

Several other brokerages also recently issued reports on MCD. Seaport Research Partners began coverage on shares of McDonald’s in a report on Wednesday, September 16th. They set a “neutral” rating for the company. BTIG Research dropped their price objective on shares of McDonald’s from $350.00 to $295.00 and set a “buy” rating on the stock in a report on Thursday. Deutsche Bank Aktiengesellschaft cut their price objective on shares of McDonald’s from $325.00 to $300.00 and set a “buy” rating on the stock in a research report on Monday, September 14th. Argus reduced their target price on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a research note on Wednesday, August 26th. Finally, Citigroup decreased their target price on shares of McDonald’s from $345.00 to $310.00 and set a “buy” rating for the company in a research report on Thursday, September 17th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, McDonald’s presently has a consensus rating of “Moderate Buy” and an average target price of $300.40.

McDonald’s Price Performance

NYSE:MCD opened at $236.57 on Thursday. McDonald’s has a 12-month low of $234.03 and a 12-month high of $341.75. The firm has a market capitalization of $167.41 billion, a P/E ratio of 19.22, a P/E/G ratio of 2.56 and a beta of 0.41. The business has a 50 day simple moving average of $262.23 and a 200 day simple moving average of $280.76.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data 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 negative return on equity of 572.06% and a net margin of 31.72%.The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. During the same period in the prior year, the business earned $3.19 EPS. The firm’s revenue was up 3.7% on a year-over-year basis. Research analysts anticipate that McDonald’s will post 12.86 EPS for the current fiscal year.

McDonald’s Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a dividend of $1.93 per share. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Tuesday, December 1st. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.

Institutional Investors Weigh In On McDonald’s

Several institutional investors have recently bought and sold shares of MCD. State Street Corp increased its stake in McDonald’s by 1.8% during the 2nd quarter. State Street Corp now owns 36,080,505 shares of the fast-food giant’s stock valued at $9,752,921,000 after buying an additional 646,675 shares during the period. Geode Capital Management LLC lifted its stake in shares of McDonald’s by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock worth $5,195,965,000 after acquiring an additional 76,090 shares during the period. Norges Bank acquired a new stake in shares of McDonald’s in the 4th quarter worth approximately $2,890,438,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of McDonald’s by 7.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,560,037 shares of the fast-food giant’s stock valued at $1,699,314,000 after acquiring an additional 384,762 shares in the last quarter. Finally, Bank of New York Mellon Corp boosted its holdings in shares of McDonald’s by 0.8% in the fourth quarter. Bank of New York Mellon Corp now owns 5,283,655 shares of the fast-food giant’s stock valued at $1,614,843,000 after acquiring an additional 40,506 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s raised its quarterly dividend by nearly 4%, supporting the investment case for income-oriented shareholders. Some analysts also view the post-investor-day pullback as improving the stock’s valuation and dividend yield. McDonald’s Increased Its Dividend by Nearly 4%. How to Play MCD Stock Here.
• Positive Sentiment: The company’s NEXT strategy targets improved restaurant productivity, AI-enabled operations, stronger loyalty sales and higher margins through 2030. Management also plans new protein-focused menu items, including options aimed at consumers using GLP-1 weight-loss medications. Struggling McDonald’s pins hopes on restaurant upgrades, protein bowls and AI
• Neutral Sentiment: McDonald’s revived its Monopoly promotion with a major change, which could support engagement and customer traffic, although the announcement is unlikely to materially affect near-term earnings. McDonald’s revives its popular Monopoly game with one big change
• Negative Sentiment: McDonald’s committed approximately $8.5 billion through 2036 to franchisee support, restaurant modernization, technology and operational upgrades. Investors appear concerned that the spending will pressure cash flow and margins before the benefits arrive. McDonald’s expects inflation to keep traffic flat, shares dip after $8.5 bln capex plan
• Negative Sentiment: CEO Chris Kempczinski warned that elevated inflation and lackluster traffic may persist, particularly among lower-income consumers. That outlook undermines expectations for a quick sales recovery and has prompted multiple analysts to reduce their price targets, including Baird, JPMorgan, Oppenheimer, RBC and BTIG. McDonald’s CEO Warns Elevated Inflation Will Stick Around

McDonald’s Company Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.