McDonald’s (NYSE:MCD) Stock Price Target Cut by Melius Research

McDonald’s (NYSE:MCD) had its price objective lowered by investment analysts at Melius Research from $250.00 to $230.00 in a report issued on Monday, Marketbeat reports. The brokerage presently has a “sell” rating on the fast-food giant’s stock. Melius Research’s price target suggests a potential downside of 1.67% from the stock’s current price.

A number of other research analysts also recently issued reports on MCD. Piper Sandler set a $286.00 price objective on McDonald’s in a research note on Tuesday, August 4th. Robert W. Baird dropped their price target on McDonald’s from $285.00 to $250.00 and set a “neutral” rating on the stock in a research note on Thursday, September 24th. Mizuho cut their price target on McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a report on Friday, July 31st. JPMorgan Chase & Co. reduced their price objective on shares of McDonald’s from $280.00 to $260.00 and set an “overweight” rating for the company in a research report on Thursday, September 24th. Finally, Oppenheimer lowered their price objective on shares of McDonald’s from $325.00 to $295.00 and set an “outperform” rating for the company in a research note on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $294.38.

McDonald’s Price Performance

Shares of McDonald’s stock traded up $0.31 during midday trading on Monday, reaching $233.91. The company had a trading volume of 5,222,165 shares, compared to its average volume of 4,139,945. The stock has a fifty day moving average price of $261.55 and a 200 day moving average price of $279.74. McDonald’s has a fifty-two week low of $232.06 and a fifty-two week high of $341.75. The firm has a market cap of $165.53 billion, a PE ratio of 19.00, a P/E/G ratio of 2.56 and a beta of 0.41.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. The firm had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company’s revenue for the quarter was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.19 EPS. As a group, sell-side analysts forecast that McDonald’s will post 12.86 EPS for the current year.

Institutional Trading of McDonald’s

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Envestnet Portfolio Solutions Inc. increased its position in shares of McDonald’s by 41.3% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 23,867 shares of the fast-food giant’s stock worth $6,451,000 after acquiring an additional 6,980 shares in the last quarter. State Street Corp lifted its position in McDonald’s by 1.8% in 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 acquiring an additional 646,675 shares in the last quarter. Security National Bank of Sioux City Iowa IA acquired a new position in McDonald’s during the 2nd quarter valued at about $71,000. Anchor Investment Management LLC increased its holdings in McDonald’s by 3.6% during the 2nd quarter. Anchor Investment Management LLC now owns 15,607 shares of the fast-food giant’s stock worth $4,219,000 after purchasing an additional 537 shares in the last quarter. Finally, Bullseye Investment Management LLC bought a new stake in McDonald’s during the 2nd quarter worth approximately $133,000. Institutional investors own 70.29% of the company’s stock.

More McDonald’s News

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

• Positive Sentiment: McDonald’s is investing in its “NEXT” strategy, targeting approximately 250 basis points of restaurant-level efficiency gains through upgraded equipment, processes and technology. AI tools designed to reduce labor requirements could support margins over time. Restaurant Dive article
• Positive Sentiment: The company is piloting advertising on drive-thru menu screens at roughly 450 company-owned U.S. restaurants. Management hopes the media network could eventually become a sizable, potentially billion-dollar revenue opportunity. Quartz article
• Positive Sentiment: A Pokémon Trading Card Game Happy Meal promotion reportedly planned for November could increase traffic and engagement, although its financial impact is likely limited. Hypebeast article
• Positive Sentiment: Jefferies maintained an “overweight” rating while lowering its price target from $260 to $250, implying analysts still see potential recovery from current levels.
• Neutral Sentiment: McDonald’s is reportedly testing AI-guided pricing based on local conditions and customer willingness to pay. The strategy could improve revenue and franchise economics, but it remains experimental. Reuters article
• Negative Sentiment: Investors reacted poorly to plans to spend about $8.5 billion reshaping menus and restaurants for consumers using GLP-1 weight-loss drugs. Higher-protein products and new portion sizes may be strategically necessary, but the spending could pressure near-term earnings and cash flow. Yahoo Finance article
• Negative Sentiment: AI-based individualized pricing is drawing criticism from franchisees and consumers over wider price differences for identical products, raising customer-retention, reputational and possible antitrust risks. Reuters article
• Negative Sentiment: Morgan Stanley expects U.S. comparable sales to remain pressured through year-end and lowered estimates to reflect the NEXT investment cycle. Melius Research also shifted to a “strong sell” rating, adding to the negative analyst tone.

About McDonald’s

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.