McDonald’s (NYSE:MCD) Hits New 52-Week Low – Should You Sell?

Shares of McDonald’s Corporation (NYSE:MCD) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $259.20 and last traded at $258.0530, with a volume of 361931 shares. The stock had previously closed at $260.95.

McDonald’s News Roundup

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

Analyst Ratings Changes

MCD has been the topic of a number of research analyst reports. Wells Fargo & Company reduced their target price on McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a report on Thursday, July 16th. Cfra upgraded McDonald’s to a “buy” rating in a report on Friday, May 8th. Mizuho dropped their target price on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a report on Friday, July 31st. Sanford C. Bernstein reiterated a “market perform” rating and issued a $295.00 price target on shares of McDonald’s in a research note on Wednesday, August 5th. Finally, Robert W. Baird raised shares of McDonald’s to a “hold” rating in a research note on Monday, August 24th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $321.35.

McDonald’s Stock Down 1.5%

The firm’s fifty day simple moving average is $269.67 and its 200-day simple moving average is $289.39. The firm has a market capitalization of $180.94 billion, a PE ratio of 20.77, a PEG ratio of 2.80 and a beta of 0.41.

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

McDonald’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be given a dividend of $1.86 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $7.44 annualized dividend and a dividend yield of 2.9%. McDonald’s’s dividend payout ratio (DPR) is 60.44%.

Insider Buying and Selling

In other McDonald’s news, insider Joseph Erlinger sold 5,252 shares of the business’s 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 completion of the transaction, the insider owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. The trade was a 40.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.26% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Parkside Financial Bank & Trust lifted its position in McDonald’s by 4.2% during the second quarter. Parkside Financial Bank & Trust now owns 7,513 shares of the fast-food giant’s stock valued at $2,031,000 after purchasing an additional 305 shares during the period. HighTower Advisors LLC grew its position in McDonald’s by 7.1% in the 2nd quarter. HighTower Advisors LLC now owns 1,471,725 shares of the fast-food giant’s stock worth $397,822,000 after purchasing an additional 97,060 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in McDonald’s during the 2nd quarter valued at $69,948,000. Carlson Financial Inc. raised its stake in McDonald’s by 5.1% during the 2nd quarter. Carlson Financial Inc. now owns 1,827 shares of the fast-food giant’s stock valued at $494,000 after buying an additional 89 shares during the last quarter. 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 valued at $574,000 after buying an additional 227 shares during the period. 70.29% of the stock is owned by hedge funds and other institutional investors.

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.