McDonald’s (NYSE:MCD) Sets New 12-Month Low – Here’s Why

McDonald’s Corporation (NYSE:MCD)’s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $263.65 and last traded at $263.7580, with a volume of 3455401 shares changing hands. The stock had previously closed at $267.64.

Wall Street Analysts Forecast Growth

MCD has been the subject of several recent analyst reports. Rothschild & Co Redburn raised McDonald’s from a “sell” rating to a “neutral” rating and raised their target price for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. BTIG Research reissued a “buy” rating and set a $370.00 price target on shares of McDonald’s in a research report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft set a $325.00 price objective on McDonald’s in a research note on Thursday, July 9th. Evercore set a $350.00 target price on McDonald’s in a research note on Friday, May 8th. Finally, TD Cowen reissued a “hold” rating on shares of McDonald’s in a research report on Friday, June 12th. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $336.32.

McDonald’s Price Performance

The stock has a market capitalization of $187.21 billion, a price-to-earnings ratio of 21.72, a PEG ratio of 2.83 and a beta of 0.41. The stock’s 50 day simple moving average is $276.47 and its 200-day simple moving average is $299.40.

McDonald’s (NYSE:MCD) last issued 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. The firm had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. McDonald’s’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same period in the prior year, the company posted $2.67 earnings per share. As a group, equities research analysts anticipate that McDonald’s Corporation will post 12.86 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

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

Insider Transactions at McDonald’s

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’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 owned 7,734 shares in the company, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,348 shares of company stock worth $2,355,634 over the last quarter. 0.26% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On McDonald’s

Institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new stake in shares of McDonald’s during the 4th quarter worth about $2,890,438,000. Diamant Asset Management Inc. lifted its position in McDonald’s by 30,979.0% during 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 in the last quarter. J. Stern & Co. LLP increased its position 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 valued at $776,608,000 after acquiring an additional 2,515,515 shares in the last quarter. Viking Global Investors LP grew its stake in shares of McDonald’s by 171.7% during the second quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock valued at $913,157,000 after purchasing an additional 1,974,998 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in McDonald’s by 49.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant’s stock valued at $948,779,000 after buying an additional 1,033,041 shares during the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

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.