McDonald’s (NYSE:MCD) Stock Keeps “Buy” Rating at BTIG Research

McDonald’s (NYSE:MCD)‘s stock had its “buy” rating reissued by equities researchers at BTIG Research in a report issued on Monday, Benzinga reports. They presently have a $295.00 price target on the fast-food giant’s stock. BTIG Research‘s target price indicates a potential upside of 16.86% from the stock’s previous close.

A number of other equities research analysts also recently commented on MCD. HSBC cut their price objective on McDonald’s from $357.00 to $356.00 and set a “buy” rating for the company in a research report on Wednesday, August 5th. Royal Bank Of Canada cut their target price on shares of McDonald’s from $290.00 to $285.00 and set a “sector perform” rating on the stock in a research note on Thursday, September 24th. Sanford C. Bernstein cut their target price on shares of McDonald’s from $295.00 to $250.00 and set a “market perform” rating on the stock in a research note on Thursday, October 8th. Seaport Research Partners initiated coverage on shares of McDonald’s in a research note on Wednesday, September 16th. They issued a “neutral” rating on the stock. Finally, Citigroup decreased their price objective on shares of McDonald’s from $305.00 to $295.00 and set a “buy” rating for the company in a report on Tuesday, October 20th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $295.64.

McDonald’s Price Performance

Shares of NYSE MCD traded up $3.98 during midday trading on Monday, hitting $252.44. 444,395 shares of the company’s stock were exchanged, compared to its average volume of 4,264,534. The firm has a market cap of $178.64 billion, a P/E ratio of 20.51, a PEG ratio of 2.83 and a beta of 0.44. McDonald’s has a twelve month low of $229.20 and a twelve month high of $341.75. The stock’s 50 day moving average price is $249.43 and its 200-day moving average price is $269.68.

McDonald’s (NYSE:MCD) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. The firm had revenue of $7.10 billion during the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. The firm’s revenue for the quarter was up 3.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.19 earnings per share. On average, analysts expect that McDonald’s will post 12.84 EPS for the current fiscal year.

Institutional Investors Weigh In On McDonald’s

Several hedge funds have recently made changes to their positions in MCD. GKV Capital Management Co. Inc. acquired a new position in McDonald’s in the first quarter worth about $33,000. Financial Life Planners acquired a new stake in shares of McDonald’s during the first quarter worth approximately $51,000. POM Investment Strategies LLC increased its holdings in shares of McDonald’s by 46.2% during the second quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after buying an additional 55 shares in the last quarter. Westfuller Advisors LLC increased its holdings in shares of McDonald’s by 140.0% during the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock worth $49,000 after buying an additional 105 shares in the last quarter. Finally, Burkett Financial Services LLC increased its holdings in shares of McDonald’s by 2,312.5% in the third quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock valued at $45,000 after purchasing an additional 185 shares in the last quarter. Institutional investors own 70.29% of the company’s stock.

Key Stories Impacting McDonald’s

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

• Positive Sentiment: BTIG reaffirms a Buy rating: BTIG Research maintained its Buy recommendation and set a $295 price target, implying roughly 19% upside from the referenced share price. The target suggests the analyst sees room for recovery despite McDonald’s trading below its 200-day moving average.
• Positive Sentiment: Menu promotions could support traffic: McDonald’s is bringing back the McRib and another popular sandwich, which could generate limited-time demand, increase customer visits and support comparable sales. McDonald’s Just Brought Back One of Its Most Popular Sandwiches Ever
• Neutral Sentiment: Long-term growth investment remains substantial: McDonald’s is reportedly committing $8.5 billion to its NEXT strategy, including restaurant and operating upgrades. However, management expects traffic to remain flat, while global comparable sales recently grew only about 1%, making the payoff from the investment uncertain. McDonald’s Bets $8.5 Billion on NEXT as Its CEO Warns Traffic Will Stay Flat
• Neutral Sentiment: Marketing strategy is changing: McDonald’s is ending its 32-year FIFA World Cup sponsorship and shifting spending toward company-owned intellectual property. The move could improve marketing efficiency and control, but it also removes a major global brand platform. McDonald’s Ends 32-Year FIFA World Cup Sponsorship
• Negative Sentiment: FY2027 earnings estimates were reduced: Erste Group Bank cut its EPS forecast for McDonald’s, a potentially negative signal for profit growth expectations and valuation support. The revision is particularly relevant as the company faces persistent traffic and affordability pressures. FY2027 EPS Estimates for McDonald’s Cut by Erste Group Bank
• Negative Sentiment: Value strategy may pressure margins: McDonald’s is adjusting its discount strategy to emphasize broader value rather than only its cheapest offerings. While this may protect customer traffic, heavier promotions could weigh on average checks and restaurant profitability. McDonald’s Changes Its Discount Strategy

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.