McDonald’s (NYSE:MCD) Sets New 52-Week Low – Should You Sell?

McDonald’s Corporation (NYSE:MCDGet Free Report)’s stock price reached a new 52-week low on Tuesday . The company traded as low as $283.02 and last traded at $284.6980, with a volume of 641118 shares. The stock had previously closed at $284.10.

Trending Headlines about McDonald’s

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

Analyst Upgrades and Downgrades

MCD has been the subject of a number of research reports. KeyCorp lowered their price objective on shares of McDonald’s from $354.00 to $345.00 and set an “overweight” rating for the company in a research note on Monday, April 20th. Jefferies Financial Group upped their price objective on shares of McDonald’s from $360.00 to $375.00 and gave the stock a “buy” rating in a research note on Thursday, February 12th. Piper Sandler upped their price objective on shares of McDonald’s from $323.00 to $325.00 and gave the stock a “neutral” rating in a research note on Thursday, February 12th. Argus raised shares of McDonald’s from a “hold” rating to a “buy” rating and set a $380.00 price objective for the company in a research note on Friday, February 13th. Finally, Royal Bank Of Canada boosted their target price on shares of McDonald’s from $320.00 to $330.00 and gave the stock a “sector perform” rating in a report on Thursday, February 12th. Sixteen research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $340.93.

Check Out Our Latest Analysis on McDonald’s

McDonald’s Price Performance

The firm has a market capitalization of $203.01 billion, a P/E ratio of 23.91, a P/E/G ratio of 2.65 and a beta of 0.43. The stock’s fifty day simple moving average is $314.29 and its 200 day simple moving average is $311.86.

McDonald’s (NYSE:MCDGet Free Report) last announced its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, topping analysts’ consensus estimates of $3.05 by $0.07. The business had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.81 billion. McDonald’s had a net margin of 31.85% and a negative return on equity of 343.90%. The firm’s revenue was up 9.7% on a year-over-year basis. During the same period in the previous year, the company posted $2.83 earnings per share. As a group, sell-side analysts forecast that McDonald’s Corporation will post 13.2 EPS for the current fiscal year.

McDonald’s Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 17th. Stockholders of record on Tuesday, March 3rd were issued a dividend of $1.86 per share. The ex-dividend date was Tuesday, March 3rd. This represents a $7.44 annualized dividend and a dividend yield of 2.6%. McDonald’s’s dividend payout ratio is 62.26%.

Insider Activity at McDonald’s

In other news, EVP Jonathan Banner sold 6,201 shares of the company’s stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the transaction, the executive vice president owned 2,291 shares in the company, valued at $763,567.39. This represents a 73.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Christopher J. Kempczinski sold 26,277 shares of the company’s stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $331.35, for a total transaction of $8,706,883.95. Following the transaction, the chief executive officer owned 22,900 shares in the company, valued at approximately $7,587,915. This trade represents a 53.43% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 71,990 shares of company stock worth $23,824,113. 0.26% of the stock is owned by insiders.

Hedge Funds Weigh In On McDonald’s

Several hedge funds have recently modified their holdings of MCD. Norges Bank acquired a new position in shares of McDonald’s during the fourth quarter valued at about $2,890,438,000. Diamant Asset Management Inc. increased its holdings in McDonald’s by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after buying an additional 2,587,986 shares during the period. J. Stern & Co. LLP increased its holdings in McDonald’s by 9,867.5% in the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock worth $776,608,000 after buying an additional 2,515,515 shares during the period. Viking Global Investors LP increased its holdings in McDonald’s by 171.7% in the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock worth $913,157,000 after buying an additional 1,974,998 shares during the period. Finally, Franklin Resources Inc. increased its holdings in McDonald’s by 36.6% in the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant’s stock worth $1,336,155,000 after buying an additional 1,179,244 shares during the period. Institutional investors and hedge funds own 70.29% of the company’s stock.

About McDonald’s

(Get Free Report)

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.

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