Brokerages Set McDonald’s Corporation (NYSE:MCD) Target Price at $335.70

McDonald’s Corporation (NYSE:MCD) has been given an average rating of “Moderate Buy” by the thirty research firms that are presently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, thirteen have issued a hold recommendation and sixteen have issued a buy recommendation on the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $335.7037.

MCD has been the topic of a number of research analyst reports. Evercore set a $350.00 price objective on shares of McDonald’s in a research note on Friday, May 8th. Sanford C. Bernstein restated a “market perform” rating on shares of McDonald’s in a research note on Monday, June 22nd. Cfra upgraded McDonald’s to a “buy” rating in a research note on Friday, May 8th. Royal Bank Of Canada reissued a “sector perform” rating on shares of McDonald’s in a report on Tuesday, June 23rd. Finally, Rothschild & Co Redburn raised McDonald’s from a “sell” rating to a “neutral” rating and increased their target price for the stock from $260.00 to $306.00 in a report on Thursday, April 23rd.

Key McDonald’s News

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

• Positive Sentiment: McDonald’s is rolling out a BT21 x Happy Meal collaboration tied to BTS/LINE FRIENDS, which could boost traffic and social-media buzz among younger consumers. Article Title
• Positive Sentiment: The company is also bringing back a fan-favorite product, the fried apple pie, and promoting limited-time fries giveaways, both of which can support short-term sales and restaurant traffic. Article Title Article Title
• Positive Sentiment: Several pieces framed McDonald’s as a quality, low-stress, dividend-friendly stock, reinforcing its appeal as a defensive hold during market volatility. Article Title Article Title
• Neutral Sentiment: Analysts and market commentators are debating McDonald’s versus rivals like Chipotle and Burger King, but these are mostly comparison pieces rather than fresh company-specific catalysts. Article Title
• Neutral Sentiment: Options activity and technical commentary suggest traders may be positioning for a bigger move in MCD, but the direction is not clear from the headlines alone. Article Title
• Negative Sentiment: Rival fast-food chains are stepping up competition with new chicken sandwiches and other menu pushes, which could pressure McDonald’s sales if competitors keep stealing share. Article Title Article Title

McDonald’s Price Performance

Shares of MCD stock opened at $282.30 on Friday. The firm’s 50-day simple moving average is $279.44 and its 200-day simple moving average is $302.61. McDonald’s has a 1-year low of $264.53 and a 1-year high of $341.75. The firm has a market cap of $200.57 billion, a P/E ratio of 23.27, a PEG ratio of 2.79 and a beta of 0.41.

McDonald’s (NYSE:MCD) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The company had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. During the same period last year, the business posted $2.67 EPS. The company’s quarterly revenue was up 9.4% compared to the same quarter last year. Analysts expect that McDonald’s will post 12.93 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were given a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.6%. The ex-dividend date was Tuesday, June 2nd. McDonald’s’s dividend payout ratio (DPR) is currently 61.34%.

Insider Activity

In other news, insider Joseph M. Erlinger sold 5,252 shares of the company’s stock in a transaction 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 completion of the sale, the insider directly owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This represents a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 11,307 shares of company stock worth $3,262,622. 0.26% of the stock is owned by corporate insiders.

Institutional Trading of McDonald’s

A number of hedge funds have recently made changes to their positions in MCD. Westmount Partners LLC increased its holdings in shares of McDonald’s by 1.9% during the 2nd quarter. Westmount Partners LLC now owns 2,245 shares of the fast-food giant’s stock valued at $607,000 after acquiring an additional 41 shares during the last quarter. 55 North Private Wealth LLC grew its holdings in McDonald’s by 23.7% during the second quarter. 55 North Private Wealth LLC now owns 1,727 shares of the fast-food giant’s stock valued at $467,000 after purchasing an additional 331 shares during the last quarter. Byrne Asset Management LLC grew its holdings in McDonald’s by 5.9% during the second quarter. Byrne Asset Management LLC now owns 1,121 shares of the fast-food giant’s stock valued at $303,000 after purchasing an additional 62 shares during the last quarter. Clark Asset Management LLC raised its position in shares of McDonald’s by 9.6% in the second quarter. Clark Asset Management LLC now owns 2,581 shares of the fast-food giant’s stock valued at $698,000 after purchasing an additional 227 shares during the period. Finally, Evanson Financial LLC bought a new position in shares of McDonald’s in the second quarter valued at approximately $715,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

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.