KeyCorp Issues Pessimistic Forecast for McDonald’s (NYSE:MCD) Stock Price

McDonald’s (NYSE:MCD) had its target price reduced by equities research analysts at KeyCorp from $354.00 to $345.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has an “overweight” rating on the fast-food giant’s stock. KeyCorp’s price objective points to a potential upside of 10.65% from the company’s current price.

Several other brokerages have also commented on MCD. BTIG Research increased their price objective on shares of McDonald’s from $360.00 to $370.00 and gave the company a “buy” rating in a research report on Thursday, February 12th. Royal Bank Of Canada increased their price target on McDonald’s from $320.00 to $330.00 and gave the stock a “sector perform” rating in a research report on Thursday, February 12th. Citigroup increased their price target on McDonald’s from $371.00 to $375.00 and gave the stock a “buy” rating in a research report on Thursday, February 12th. Tigress Financial lifted their target price on shares of McDonald’s from $360.00 to $385.00 and gave the company a “buy” rating in a report on Friday, March 6th. Finally, Barclays lifted their target price on shares of McDonald’s from $372.00 to $380.00 and gave the company an “overweight” rating in a report on Thursday, February 12th. Seventeen 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 presently has an average rating of “Hold” and an average price target of $339.38.

McDonald’s Stock Performance

NYSE:MCD opened at $311.78 on Monday. McDonald’s has a fifty-two week low of $283.47 and a fifty-two week high of $341.75. The stock has a market capitalization of $221.63 billion, a P/E ratio of 26.09, a P/E/G ratio of 2.81 and a beta of 0.53. The company’s 50-day simple moving average is $319.62 and its 200-day simple moving average is $311.90.

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

Insider Activity at McDonald’s

In related news, CEO Christopher J. Kempczinski sold 26,276 shares of McDonald’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $333.54, for a total value of $8,764,097.04. Following the sale, the chief executive officer owned 22,900 shares of the company’s stock, valued at approximately $7,638,066. This trade represents a 53.43% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 transaction of $1,553,052.00. Following the completion of the sale, the chief marketing officer directly owned 6,200 shares in the company, valued at $2,052,200. This represents a 43.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 71,657 shares of company stock worth $23,723,307 over the last 90 days. 0.26% of the stock is owned by insiders.

Institutional Investors Weigh In On McDonald’s

A number of institutional investors have recently added to or reduced their stakes in the stock. Evergreen Private Wealth LLC boosted 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 worth $26,000 after purchasing an additional 52 shares during the last quarter. Your Advocates Ltd. LLP acquired a new stake in McDonald’s during the 4th quarter worth $27,000. Park Place Capital Corp boosted its stake 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 purchasing an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. acquired a new stake in McDonald’s during the 4th quarter worth $29,000. Finally, Abound Financial LLC acquired a new stake in McDonald’s during the 4th quarter worth $30,000. 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.