McDonald’s (NYSE:MCD) Hits New 12-Month High – Should You Buy?

McDonald’s Corporation (NYSE:MCD) reached a new 52-week high during trading on Monday . The company traded as high as $341.75 and last traded at $340.2320, with a volume of 427147 shares. The stock had previously closed at $341.06.

Wall Street Analysts Forecast Growth

MCD has been the subject of a number of research analyst reports. BMO Capital Markets reiterated an “outperform” rating on shares of McDonald’s in a report on Thursday, November 6th. Royal Bank Of Canada lifted their price target on shares of McDonald’s from $320.00 to $330.00 and gave the company a “sector perform” rating in a research note on Thursday, February 12th. Citigroup increased their price objective on McDonald’s from $371.00 to $375.00 and gave the stock a “buy” rating in a research note on Thursday, February 12th. Barclays raised their price objective on McDonald’s from $372.00 to $380.00 and gave the stock an “overweight” rating in a report on Thursday, February 12th. Finally, Jefferies Financial Group upped their target price on McDonald’s from $360.00 to $375.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, McDonald’s has a consensus rating of “Hold” and an average price target of $337.57.

McDonald’s Trading Down 1.4%

The company has a 50-day moving average price of $316.42 and a 200 day moving average price of $310.29. The stock has a market capitalization of $238.96 billion, a P/E ratio of 28.14, a price-to-earnings-growth ratio of 3.03 and a beta of 0.51.

McDonald’s (NYSE:MCD) last posted its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.05 by $0.07. The company had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.81 billion. McDonald’s had a negative return on equity of 343.90% and a net margin of 31.85%.The firm’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.83 earnings per share. As a group, research analysts expect that McDonald’s Corporation will post 12.25 earnings per share for the current year.

McDonald’s Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd will be given a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, March 3rd. This represents a $7.44 dividend on an annualized basis and a yield of 2.2%. McDonald’s’s dividend payout ratio is presently 62.26%.

Insider Buying and Selling

In other McDonald’s news, CMO Edith Morgan Flatley sold 4,692 shares of McDonald’s stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $331.00, for a total value of $1,553,052.00. Following the transaction, the chief marketing officer directly owned 6,200 shares of the company’s stock, valued at approximately $2,052,200. The trade was a 43.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,486 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $320.00, for a total value of $795,520.00. Following the transaction, the executive vice president directly owned 6,268 shares in the company, valued at approximately $2,005,760. The trade was a 28.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 71,517 shares of company stock valued at $23,655,503 over the last quarter. Insiders own 0.25% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

Several institutional investors have recently added to or reduced their stakes in the business. Evergreen Private Wealth LLC increased its stake in McDonald’s by 162.5% during the 3rd quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant’s stock valued at $26,000 after purchasing an additional 52 shares in the last quarter. Decker Retirement Planning Inc. increased its position in shares of McDonald’s by 142.9% in the 2nd quarter. Decker Retirement Planning Inc. now owns 85 shares of the fast-food giant’s stock valued at $25,000 after acquiring an additional 50 shares during the period. Legacy Investment Solutions LLC purchased a new position in McDonald’s in the 2nd quarter worth $25,000. Your Advocates Ltd. LLP acquired a new stake in McDonald’s during the 4th quarter worth about $27,000. Finally, Park Place Capital Corp lifted its position in McDonald’s by 95.7% during the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock worth $28,000 after acquiring an additional 45 shares during the period. Institutional investors and hedge funds own 70.29% of the company’s stock.

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.