McDonald’s (NYSE:MCD) Given New $285.00 Price Target at Robert W. Baird

McDonald’s (NYSE:MCD) had its target price reduced by research analysts at Robert W. Baird from $305.00 to $285.00 in a research report issued on Wednesday. The brokerage currently has a “neutral” rating on the fast-food giant’s stock. Robert W. Baird’s price objective would indicate a potential upside of 6.21% from the stock’s previous close.

Other research analysts also recently issued reports about the stock. Erste Group Bank downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. BTIG Research reissued a “buy” rating and set a $350.00 price objective on shares of McDonald’s in a research report on Wednesday. Piper Sandler set a $286.00 price objective on McDonald’s in a research note on Tuesday. TD Cowen restated a “hold” rating on shares of McDonald’s in a research note on Tuesday. Finally, KeyCorp decreased their target price on McDonald’s from $315.00 to $305.00 and set an “overweight” rating on the stock in a report on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $329.44.

McDonald’s Stock Up 1.2%

NYSE MCD opened at $268.35 on Wednesday. McDonald’s has a 52 week low of $260.96 and a 52 week high of $341.75. The firm has a market capitalization of $190.66 billion, a P/E ratio of 22.12, a PEG ratio of 2.85 and a beta of 0.41. The company has a 50-day moving average price of $274.32 and a 200-day moving average price of $297.05.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $7.13 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The firm’s revenue was up 3.7% compared to the same quarter last year. During the same quarter last year, the firm posted $3.19 earnings per share. As a group, equities research analysts anticipate that McDonald’s will post 12.85 EPS for the current year.

Insiders Place Their Bets

In other news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the transaction, the executive vice president 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 transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This represents a 40.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 8,348 shares of company stock valued at $2,355,634 in the last quarter. 0.26% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On McDonald’s

A number of institutional investors have recently added to or reduced their stakes in the stock. Your Advocates Ltd. LLP purchased a new position in shares of McDonald’s in the fourth quarter worth $27,000. IFC & Insurance Marketing Inc. purchased a new stake in McDonald’s in the 4th quarter worth $29,000. Abound Financial LLC purchased a new stake in McDonald’s in the 4th quarter worth $30,000. DecisionPoint Financial LLC boosted its holdings in shares of McDonald’s by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock valued at $31,000 after purchasing an additional 97 shares during the last quarter. Finally, Entrust Financial LLC purchased a new position in shares of McDonald’s during the fourth quarter valued at about $31,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

More McDonald’s News

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

• Positive Sentiment: McDonald’s reported adjusted earnings of $3.38 per share, ahead of the $3.32 analyst consensus and up from $3.19 a year earlier. Revenue rose 3.7% to $7.10 billion, while stronger franchised margins and record restaurant margins supported profits despite revenue coming in slightly below expectations. McDonald’s Q2 Earnings Surpass Estimates
• Positive Sentiment: Comparable sales increased across all three operating segments, with international markets providing important support as the U.S. business slowed. Management said the company sees an opportunity to improve value, service and food quality in the domestic market. McDonald’s posts strong second quarter profit
• Neutral Sentiment: McDonald’s appointed longtime executive Skye Anderson as president of McDonald’s USA, replacing Joe Erlinger. Anderson will oversee nearly 14,000 U.S. restaurants and is tasked with restoring traffic and improving execution; the change offers a potential turnaround catalyst but also highlights the urgency of the domestic slowdown. McDonald’s names Skye Anderson as U.S. president
• Negative Sentiment: U.S. comparable sales rose only 0.8%, down from 2.5% a year earlier and below expectations. Traffic weakened as lower-income consumers remained under pressure from elevated prices and gas costs. McDonald’s US sales disappoint
• Negative Sentiment: The company acknowledged that its value strategy became overly complicated: too many simultaneous promotions and reduced digital deal activity confused customers and employees, failing to bring back enough loyal diners. McDonald’s also delayed its goal of reaching 50,000 global restaurants from 2027 to 2028, signaling a more cautious growth outlook. McDonald’s admits its value meals have become too confusing

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.