McDonald’s (NYSE:MCD) Stock Price Down 1.1% – What’s Next?

McDonald’s Corporation (NYSE:MCD) fell 1.1% on Tuesday. The company traded as low as $261.00 and last traded at $262.7450. Approximately 6,083,772 shares were traded during mid-day trading, an increase of 41% from the average session volume of 4,303,062 shares. The stock had previously closed at $265.64.

Key McDonald’s News

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

• Positive Sentiment: Third-quarter adjusted EPS of $3.57 topped estimates, supported by stronger franchised margins and international performance. The company also said U.S. sales improved as the quarter progressed. Article: McDonald’s Q3 Earnings Beat, but U.S. Traffic Still Pressures Growth
• Positive Sentiment: McDonald’s is testing value-menu options at about 1,900 U.S. restaurants, with a possible nationwide launch in early 2027. The initiative, alongside digital deals, is intended to attract budget-conscious customers and revive sales. Article: McDonald’s plans new value menu offerings next year to boost sluggish sales
• Positive Sentiment: Several firms raised their price targets and retained positive ratings: Citi to $315 (Buy), KeyCorp to $307 (Overweight), and Wells Fargo to $300 (Overweight). JPMorgan also lifted its target, to $270, but its target is below the cited share price.
• Neutral Sentiment: McDonald’s will divide its U.S. chief marketing officer’s responsibilities between two executives on an interim basis while searching for a replacement—a leadership change amid efforts to address declining sales. Article: McDonald’s US CMO steps down as sales decline
• Negative Sentiment: Revenue of $7.16 billion missed estimates, and U.S. comparable sales fell 0.2%—the first decline in six quarters—as cost-of-living pressures weigh on customer traffic. This remains a key risk to sustained growth.
• Negative Sentiment: Oppenheimer warned that technical indicators look stretched after shares climbed more than 20%, raising the risk that near-term gains may be difficult to sustain. Article: McDonald’s Stock Rally Runs Into Wall Street Warning

Analyst Ratings Changes

MCD has been the topic of several research reports. Evercore decreased their target price on McDonald’s from $320.00 to $300.00 and set an “outperform” rating on the stock in a research note on Thursday, September 24th. HSBC lowered their target price on McDonald’s from $357.00 to $356.00 and set a “buy” rating for the company in a report on Wednesday, August 5th. Royal Bank Of Canada lifted their target price on McDonald’s from $285.00 to $300.00 and gave the company a “sector perform” rating in a research report on Thursday. Citigroup boosted their price target on shares of McDonald’s from $295.00 to $315.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Jefferies Financial Group reduced their price target on shares of McDonald’s from $260.00 to $250.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, McDonald’s presently has a consensus rating of “Moderate Buy” and a consensus price target of $297.52.

McDonald’s Price Performance

The firm has a market capitalization of $196.77 billion, a price-to-earnings ratio of 22.00, a PEG ratio of 3.20 and a beta of 0.42. The firm has a 50 day moving average price of $248.43 and a 200-day moving average price of $282.70.

McDonald’s (NYSE:MCD) last released its earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 EPS for the quarter, topping the consensus estimate of $3.38 by $0.19. McDonald’s had a negative return on equity of 671.56% and a net margin of 32.38%. The firm had revenue of $7.16 billion during the quarter, compared to analysts’ expectations of $7.28 billion. During the same period in the previous year, the firm posted $3.22 EPS. McDonald’s’s revenue for the quarter was up 1.1% on a year-over-year basis. Equities research analysts predict that McDonald’s Corporation will post 12.83 earnings per share for the current year.

McDonald’s Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $1.93 per share. This is a boost 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 2.8%. The ex-dividend date of this dividend is Tuesday, December 1st. McDonald’s’s dividend payout ratio is presently 61.08%.

Institutional Trading of McDonald’s

Several hedge funds have recently added to or reduced their stakes in MCD. GKV Capital Management Co. Inc. acquired a new stake in McDonald’s during the first quarter valued at approximately $33,000. Valued Wealth Advisors LLC lifted its holdings in McDonald’s by 121.1% during the 3rd quarter. Valued Wealth Advisors LLC now owns 168 shares of the fast-food giant’s stock worth $39,000 after buying an additional 92 shares during the last quarter. POM Investment Strategies LLC grew its position in shares of McDonald’s by 46.2% in the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after acquiring an additional 55 shares in the last quarter. Westfuller Advisors LLC grew its position in shares of McDonald’s by 140.0% in the 2nd quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock worth $49,000 after acquiring an additional 105 shares in the last quarter. Finally, Burkett Financial Services LLC grew its position in shares of McDonald’s by 2,312.5% in the 3rd quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock worth $45,000 after acquiring an additional 185 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

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.