McDonald’s (NYSE:MCD) Stock Breaks Below 200 Day Moving Average – What’s Next?

McDonald’s Corporation (NYSE:MCD) shares passed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $282.16 and traded as low as $274.45. McDonald’s shares last traded at $275.3020, with a volume of 6,856,754 shares changing hands.

McDonald’s News Roundup

These are some of the MCD news items that stood out recently:

• Positive Sentiment: McDonald’s has raised its dividend for 50 consecutive years and yields about 2.74%. Its franchise-heavy rent-and-royalty model is described as providing steady cash flow to support future payouts. McDonald’s Is a Dividend King With 50 Years of Raises
• Positive Sentiment: Uber is expanding its McDonald’s delivery partnership across 14 markets, which could increase delivery orders and customer engagement. Is Uber’s Expansion of Delivery Tie-Up With MCD a Growth Catalyst?
• Positive Sentiment: A report says a recent U.S. recovery and growth initiatives helped drive a 17% gain over a month, while strong demand for new chicken sandwiches in Japan is another indication that product launches can resonate with customers. McDonald’s Stock Up 17% in a Month: Is the Rally Built to Last? McDonald’s Japan pulls new chicken sandwiches after they sell too well

Analyst Ratings Changes

Several equities analysts recently issued reports on MCD shares. Seaport Research Partners initiated coverage on McDonald’s in a research note on Wednesday, September 16th. They set a “neutral” rating on the stock. Citigroup increased their target price on shares of McDonald’s from $295.00 to $315.00 and gave the stock a “buy” rating in a research report on Thursday, November 5th. Morgan Stanley cut their price objective on McDonald’s from $308.00 to $297.00 and set an “equal weight” rating for the company in a research report on Monday, September 28th. Weiss Ratings lowered shares of McDonald’s from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, October 2nd. Finally, Mizuho decreased their price target on McDonald’s from $290.00 to $260.00 and set a “neutral” rating on the stock in a report on Friday, October 30th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $297.82.

McDonald’s Stock Down 0.6%

The company has a market capitalization of $192.06 billion, a P/E ratio of 21.53, a price-to-earnings-growth ratio of 3.18 and a beta of 0.42. The business has a fifty day moving average price of $250.24 and a 200 day moving average price of $281.75.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.38 by $0.19. The firm had revenue of $7.16 billion for the quarter, compared to analyst estimates of $7.28 billion. McDonald’s had a net margin of 32.38% and a negative return on equity of 826.29%. The company’s revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the business earned $3.22 EPS. As a group, equities analysts forecast that McDonald’s Corporation will post 12.91 earnings per share for the current year.

McDonald’s Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a $1.93 dividend. This is an increase from McDonald’s’s previous quarterly dividend of $1.86. The ex-dividend date is Tuesday, December 1st. This represents a $7.72 annualized dividend and a yield of 2.8%. McDonald’s’s dividend payout ratio (DPR) is 58.86%.

Hedge Funds Weigh In On McDonald’s

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GKV Capital Management Co. Inc. bought a new stake in McDonald’s in the 1st quarter valued at $33,000. Valued Wealth Advisors LLC increased its holdings in McDonald’s by 121.1% in the 3rd quarter. Valued Wealth Advisors LLC now owns 168 shares of the fast-food giant’s stock valued at $39,000 after buying an additional 92 shares during the period. Burkett Financial Services LLC increased its stake in McDonald’s by 2,312.5% in the third quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock valued at $45,000 after acquiring an additional 185 shares during the last quarter. POM Investment Strategies LLC raised its holdings in shares of McDonald’s by 46.2% during the 2nd quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after buying an additional 55 shares in the last quarter. Finally, Westfuller Advisors LLC raised its stake in McDonald’s by 140.0% during the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock worth $49,000 after acquiring an additional 105 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald’s Company Profile

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app. The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.