McDonald’s (NYSE:MCD) Shares Down 1.5% – Here’s What Happened

Shares of McDonald’s Corporation (NYSE:MCD) traded down 1.5% on Friday . The company traded as low as $255.49 and last traded at $255.69. Approximately 4,174,661 shares traded hands during mid-day trading, an increase of 6% from the average session volume of 3,939,901 shares. The stock had previously closed at $259.63.

Trending Headlines about McDonald’s

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

• Positive Sentiment: Valuation may attract contrarian buyers: McDonald’s is trading at roughly 19.15 times earnings, below the restaurant industry’s average multiple. Analysts point to global expansion, digital initiatives and new product efforts as possible catalysts for a recovery. McDonald’s Trades at 19.15X P/E: Is This a Discounted Opportunity?
• Positive Sentiment: Promotional activity could support traffic: McDonald’s is bringing back popular menu items, launching a Texas-themed meal with collectible cups and promoting limited-time products. These campaigns may encourage visits and improve near-term sales, though their financial impact is unproven. McDonald’s launches exclusive state-themed meal
• Neutral Sentiment: Brand visibility remains high: Coverage of McDonald’s breakfast offerings, Grimace appearances, collectible merchandise and Warren Buffett’s long-standing affinity for the brand reinforces consumer awareness but is unlikely to materially change earnings expectations. The best McDonald’s breakfast sandwich isn’t on the menu
• Negative Sentiment: U.S. consumer weakness is the main concern: Reports describe consumer-focused stocks, including McDonald’s, as signaling softer spending in middle America. Articles also highlight customers shifting to competing fast-food chains, increasing pressure on traffic and comparable sales. Wall Street worried about consumer stocks
• Negative Sentiment: Value positioning remains problematic: Coverage says McDonald’s $3 value offering has not fully delivered for customers or the company, raising concerns about affordability, franchisee economics and the effectiveness of discounting. Why you can’t find McDonald’s $3 value menu

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on MCD shares. UBS Group set a $305.00 price objective on shares of McDonald’s in a research report on Wednesday, August 5th. Citigroup lifted their target price on shares of McDonald’s from $335.00 to $345.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. lowered their price target on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. Robert W. Baird upgraded shares of McDonald’s to a “hold” rating in a research report on Monday, August 24th. Finally, KeyCorp dropped their price objective on shares of McDonald’s from $315.00 to $305.00 and set an “overweight” rating for the company in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $321.35.

McDonald’s Stock Performance

The stock has a market cap of $180.94 billion, a PE ratio of 20.77, a PEG ratio of 2.82 and a beta of 0.41. The business has a 50-day moving average of $269.96 and a 200 day moving average of $289.62.

McDonald’s (NYSE:MCD) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period in the prior year, the firm earned $3.19 EPS. The firm’s quarterly revenue was up 3.7% on a year-over-year basis. Equities analysts expect that McDonald’s Corporation will post 12.87 EPS for the current fiscal year.

McDonald’s Dividend Announcement

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

Insider Transactions at McDonald’s

In related news, insider Joseph Erlinger sold 5,252 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the sale, the insider owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.26% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Parkside Financial Bank & Trust boosted its stake in McDonald’s by 4.2% in the 2nd quarter. Parkside Financial Bank & Trust now owns 7,513 shares of the fast-food giant’s stock worth $2,031,000 after buying an additional 305 shares during the last quarter. HighTower Advisors LLC increased its stake in shares of McDonald’s by 7.1% during the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock valued at $397,822,000 after acquiring an additional 97,060 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of McDonald’s during the 2nd quarter valued at about $69,948,000. Carlson Financial Inc. lifted its holdings in shares of McDonald’s by 5.1% during the 2nd quarter. Carlson Financial Inc. now owns 1,827 shares of the fast-food giant’s stock worth $494,000 after acquiring an additional 89 shares during the period. Finally, Vancity Investment Management Ltd lifted its holdings in shares of McDonald’s by 12.0% during the 2nd quarter. Vancity Investment Management Ltd now owns 2,124 shares of the fast-food giant’s stock worth $574,000 after acquiring an additional 227 shares during the period. Hedge funds and other institutional investors own 70.29% of the company’s stock.

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.