McDonald’s Corporation (NYSE:MCD) Receives Average Recommendation of “Moderate Buy” from Analysts

Shares of McDonald’s Corporation (NYSE:MCD) have earned a consensus recommendation of “Moderate Buy” from the thirty-two brokerages that are presently covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and seventeen have given a buy rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $334.4483.

A number of research analysts have recently weighed in on the company. UBS Group increased their price target on McDonald’s from $350.00 to $365.00 and gave the company a “buy” rating in a research note on Thursday, February 12th. Piper Sandler upped their price objective on McDonald’s from $323.00 to $325.00 and gave the company a “neutral” rating in a report on Thursday, February 12th. Cfra raised McDonald’s to a “buy” rating in a research note on Friday, May 8th. Argus upgraded McDonald’s from a “hold” rating to a “buy” rating and set a $380.00 target price for the company in a research report on Friday, February 13th. Finally, BTIG Research reaffirmed a “buy” rating and issued a $370.00 price target on shares of McDonald’s in a research note on Thursday, May 7th.

Insider Buying and Selling at McDonald’s

In other McDonald’s news, insider Joseph M. Erlinger sold 2,626 shares of the business’s stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $307.00, for a total value of $806,182.00. Following the completion of the transaction, the insider directly owned 8,400 shares of the company’s stock, valued at approximately $2,578,800. The trade was a 23.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jonathan Banner sold 6,201 shares of the stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $333.29, for a total value of $2,066,731.29. Following the completion of the sale, the executive vice president owned 2,291 shares of the company’s stock, valued at $763,567.39. This trade represents a 73.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 12,119 shares of company stock valued at $3,945,973 in the last three months. 0.26% of the stock is owned by company insiders.

Institutional Trading of McDonald’s

A number of large investors have recently bought and sold shares of the business. Your Advocates Ltd. LLP bought a new stake in McDonald’s in the 4th quarter valued at $27,000. Park Place Capital Corp raised its stake in shares of McDonald’s by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after purchasing an additional 45 shares during the period. IFC & Insurance Marketing Inc. bought a new stake in shares of McDonald’s in the fourth quarter valued at about $29,000. Abound Financial LLC acquired a new position in shares of McDonald’s during the fourth quarter worth about $30,000. Finally, Purpose Unlimited Inc. bought a new position in shares of McDonald’s during the fourth quarter worth about $31,000. 70.29% of the stock is owned by institutional investors.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s declared a quarterly cash dividend of $1.86 per share, reinforcing its appeal as a dependable income stock and signaling ongoing confidence in cash generation. McDONALD’S ANNOUNCES QUARTERLY CASH DIVIDEND
• Positive Sentiment: Coverage highlighted McDonald’s efforts to refresh its menu and customer experience, including new beverage additions, AI-driven drive-thru concepts, and other innovation-focused changes that could support traffic and sales. McDonald’s CEO shares major beverage menu additions
• Neutral Sentiment: McDonald’s confirmed plans for a restaurant in historic Castlemaine, a small expansion item that is unlikely to materially move the stock on its own. McDonald’s confirms plan for restaurant in historic Castlemaine
• Neutral Sentiment: Analyst commentary suggested McDonald’s investment story is shifting as growth and valuation expectations are reset, which reflects changing sentiment rather than a clear operational surprise. Why The McDonald’s (MCD) Investment Story Is Shifting As Analysts Reset Growth And Valuation
• Negative Sentiment: Articles about “shrinkflation” and smaller McNuggets could pressure sentiment if consumers view McDonald’s as offering less value, potentially weighing on brand perception. Shrinkflation hits McDonald’s as customers say McNuggets are half the size they used to be
• Negative Sentiment: Coverage noting that customers are divided on McDonald’s specialty drinks suggests product experimentation may not be universally resonating yet. Why McDonald’s Customers Are Divided On Its Specialty Drinks

McDonald’s Stock Down 0.6%

McDonald’s stock opened at $282.48 on Friday. The business’s 50-day simple moving average is $299.71 and its 200 day simple moving average is $309.25. The stock has a market cap of $200.70 billion, a price-to-earnings ratio of 23.29, a P/E/G ratio of 2.83 and a beta of 0.43. McDonald’s has a 12-month low of $271.98 and a 12-month high of $341.75.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping the consensus estimate 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 negative return on equity of 442.10% and a net margin of 31.62%.The company’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the business posted $2.67 EPS. As a group, sell-side analysts expect that McDonald’s will post 12.94 EPS for the current year.

McDonald’s Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd will be issued a dividend of $1.86 per share. The ex-dividend date is Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.6%. McDonald’s’s payout ratio is currently 61.34%.

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.