McDonald’s (NYSE:MCD) Sets New 12-Month Low on Analyst Downgrade

Shares of McDonald’s Corporation (NYSE:MCD) reached a new 52-week low on Wednesday after Citigroup lowered their price target on the stock from $375.00 to $335.00. Citigroup currently has a buy rating on the stock. McDonald’s traded as low as $264.09 and last traded at $264.8750, with a volume of 3660290 shares. The stock had previously closed at $268.94.

Other analysts have also issued research reports about the stock. Barclays lowered their price target on shares of McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. Robert W. Baird set a $305.00 price objective on shares of McDonald’s in a research note on Thursday, May 7th. Cfra raised shares of McDonald’s to a “buy” rating in a report on Friday, May 8th. Weiss Ratings cut shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 23rd. Finally, Evercore set a $350.00 target price on McDonald’s in a research report on Friday, May 8th. Fifteen research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company’s stock. According to MarketBeat.com, McDonald’s presently has an average rating of “Moderate Buy” and a consensus price target of $336.35.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares of the company’s stock, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This trade represents a 40.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 8,681 shares of company stock valued at $2,456,440 over the last 90 days. 0.26% of the stock is owned by company insiders.

McDonald’s News Roundup

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

• Positive Sentiment: McDonald’s is rolling out several limited-time menu items, including new chicken options and a Caesar sauce, which could help drive traffic and boost sales. McDonald’s Adding New Chicken Items, Caesar Sauce To Menu
• Positive Sentiment: The company’s BT21 Happy Meal promotion is generating buzz and likely supporting near-term marketing momentum and family traffic. How Long Will the BT21 Happy Meal Be Available at McDonald’s?
• Positive Sentiment: Some market commentary says MCD looks more attractive on valuation than certain restaurant peers, which may help support the bull case. MCD at $268, Starbucks at $106: Buy, Sell or Hold?
• Neutral Sentiment: Restaurant-sector performance remains mixed overall, with stronger operators outperforming, suggesting investors are being selective across the group. Restaurant Sector Remains Mixed as Stronger Operators Outperform, Morgan Stanley Says
• Negative Sentiment: Citigroup lowered its price target on McDonald’s from $375 to $335, which can weigh on sentiment even though it kept a buy rating. Citigroup price target cut news

Institutional Investors Weigh In On McDonald’s

A number of institutional investors and hedge funds have recently made changes to their positions in MCD. Brighton Jones LLC increased its position in shares of McDonald’s by 21.6% in the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant’s stock worth $2,692,000 after purchasing an additional 1,649 shares during the last quarter. Revolve Wealth Partners LLC lifted its position in McDonald’s by 2.8% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant’s stock valued at $563,000 after purchasing an additional 52 shares during the last quarter. Sivia Capital Partners LLC grew its stake in McDonald’s by 11.4% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant’s stock worth $589,000 after buying an additional 206 shares in the last quarter. United Bank grew its stake in McDonald’s by 6.0% in the 2nd quarter. United Bank now owns 8,102 shares of the fast-food giant’s stock worth $2,367,000 after buying an additional 459 shares in the last quarter. Finally, Schnieders Capital Management LLC. increased its holdings in shares of McDonald’s by 2.5% in the 2nd quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant’s stock worth $3,780,000 after buying an additional 312 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s Trading Down 1.5%

The stock’s fifty day moving average price is $277.82 and its 200 day moving average price is $301.17. The stock has a market cap of $188.20 billion, a P/E ratio of 21.84, a price-to-earnings-growth ratio of 2.83 and a beta of 0.41.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The company had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the previous year, the firm posted $2.67 EPS. The firm’s revenue was up 9.4% compared to the same quarter last year. On average, analysts anticipate that McDonald’s Corporation will post 12.9 earnings per share for the current year.

McDonald’s Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were issued a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Tuesday, June 2nd. McDonald’s’s dividend payout ratio is presently 61.34%.

McDonald’s Company Profile

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.