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

McDonald’s Corporation (NYSE:MCD)’s share price hit a new 52-week low during trading on Thursday after Argus lowered their price target on the stock from $320.00 to $310.00. Argus currently has a buy rating on the stock. McDonald’s traded as low as $260.93 and last traded at $260.5150, with a volume of 3989488 shares changing hands. The stock had previously closed at $266.93.

A number of other analysts have also weighed in on MCD. Weiss Ratings lowered shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Sanford C. Bernstein reissued a “market perform” rating and issued a $295.00 target price on shares of McDonald’s in a report on Wednesday, August 5th. Robert W. Baird raised shares of McDonald’s to a “hold” rating in a research report on Monday. KeyCorp dropped their target price on McDonald’s from $315.00 to $305.00 and set an “overweight” rating on the stock in a report on Wednesday, August 5th. Finally, Freedom Capital raised shares of McDonald’s from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, McDonald’s currently has a consensus rating of “Moderate Buy” and an average target price of $322.96.

Insider Activity

In related news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.26% of the stock is owned by insiders.

McDonald’s News Summary

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

• Positive Sentiment: A temporary waiver of tariffs on imported beef could reduce input costs for fast-food operators, potentially supporting McDonald’s margins. ETFs to Gain as Trump Waives Off Tariffs on Beef Imports Temporarily
• Positive Sentiment: McDonald’s is bringing back Spicy Chicken McNuggets on September 1 after a two-year hiatus. The limited-time item could drive traffic, customer engagement and promotional sales, although its financial impact is likely modest. McDonald’s to bring back spicy McNuggets
• Positive Sentiment: Argus reduced its price target from $320 to $310 but maintained a Buy rating, implying substantial potential upside from recent levels. Argus price-target update
• Neutral Sentiment: A comparison with Domino’s highlights McDonald’s growth strategy of global expansion, digital initiatives and customer engagement. These are longer-term opportunities rather than immediate earnings catalysts. McDonald’s vs. Domino’s: Which Stock Has Better Growth Prospects?
• Neutral Sentiment: Robert W. Baird upgraded McDonald’s to Hold, indicating a more balanced view of valuation and near-term prospects. Baird rating update
• Negative Sentiment: The unwinding of takeover speculation around Wendy’s is weighing on quick-service restaurant stocks, including McDonald’s, as investors remove a deal-related premium from the sector. Wendy’s Sinks as Trian Shelves Its Take-Private Bid
• Negative Sentiment: Commentary linking McDonald’s with Kohl’s and Walmart points to weakening consumer conditions and pressure on discretionary spending, raising concerns about traffic and comparable sales. The Kohl’s Recession
• Negative Sentiment: Argus’s price-target reduction reflects more cautious expectations even though its Buy rating remains intact.

Institutional Investors Weigh In On McDonald’s

A number of institutional investors have recently modified their holdings of MCD. Your Advocates Ltd. LLP acquired a new position in McDonald’s in the fourth quarter worth $27,000. IFC & Insurance Marketing Inc. acquired a new position in McDonald’s during the 4th quarter valued at about $29,000. Abound Financial LLC bought a new stake in McDonald’s during the fourth quarter worth approximately $30,000. Entrust Financial LLC bought a new stake in shares of McDonald’s in the 4th quarter worth $31,000. Finally, Purpose Unlimited Inc. acquired a new stake in McDonald’s in the 4th quarter valued at about $31,000. Institutional investors and hedge funds own 70.29% of the company’s stock.

McDonald’s Stock Down 2.4%

The firm’s 50 day moving average is $271.33 and its 200 day moving average is $292.38. The firm has a market capitalization of $184.37 billion, a price-to-earnings ratio of 21.16, a price-to-earnings-growth ratio of 3.00 and a beta of 0.41.

McDonald’s (NYSE:MCD) last issued its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The business had revenue of $7.10 billion for the quarter, compared to analysts’ expectations of $7.13 billion. During the same period in the previous year, the firm posted $3.19 EPS. The company’s quarterly revenue was up 3.7% on a year-over-year basis. On average, sell-side analysts predict that McDonald’s Corporation will post 12.88 earnings per share for the current year.

McDonald’s Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a yield of 2.9%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s payout ratio is presently 60.44%.

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.