McDonald’s (NYSE:MCD) Sets New 1-Year Low – Here’s Why

McDonald’s Corporation (NYSE:MCD) shares reached a new 52-week low on Wednesday . The company traded as low as $254.28 and last traded at $255.5270, with a volume of 4196825 shares traded. The stock had previously closed at $255.69.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: A slower pace of restaurant expansion could help McDonald’s protect returns on new locations as construction costs rise and consumers remain price-sensitive. More disciplined development may support margins and capital efficiency. Can MCD’s Slower Expansion Pace Help Protect New-Restaurant Returns?
• Positive Sentiment: One Milwaukee franchisee reported double-digit sales growth, attributing the improvement to local execution and operating initiatives. While anecdotal, the report suggests individual operators can still outperform despite broader U.S. sales concerns. McDonald’s franchisee sales are up
• Positive Sentiment: McDonald’s was highlighted as a defensive restaurant stock ahead of inflation data and a Federal Reserve decision, reflecting the company’s resilient brand, franchised business model and dividend profile. Defensive stocks to watch
• Neutral Sentiment: CEO commentary indicates that families and other unexpected customer groups are increasingly turning to Happy Meals, prompting McDonald’s to reassess its strategy. The potential traffic opportunity is constructive, but the article does not provide quantified sales guidance. McDonald’s CEO on Happy Meals
• Neutral Sentiment: A planned U.K. interactive restaurant where customers can make their own burgers could generate publicity and test new customer experiences, but its financial impact is likely limited in the near term. New U.K. McDonald’s store
• Negative Sentiment: Coverage continues to emphasize slowing U.S. sales and execution missteps, reinforcing concerns that McDonald’s may be losing momentum versus other franchised restaurant operators. Why franchise models are winning
• Negative Sentiment: McDonald’s deleted a viral social-media post involving a controversial intern claim. Although unlikely to affect fundamentals, the incident creates avoidable reputational and communications risk. McDonald’s deletes viral post

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Wells Fargo & Company dropped their price objective on shares of McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research note on Thursday, July 16th. Royal Bank Of Canada cut their price target on McDonald’s from $305.00 to $295.00 and set a “sector perform” rating for the company in a research note on Wednesday, August 5th. Mizuho lowered their price objective on McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a research note on Friday, July 31st. Morgan Stanley dropped their price objective on McDonald’s from $322.00 to $319.00 and set an “equal weight” rating for the company in a report on Wednesday, August 5th. Finally, Guggenheim cut their target price on McDonald’s from $320.00 to $290.00 and set a “neutral” rating for the company in a research report on Wednesday, August 5th. One equities research 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. Based on data from MarketBeat.com, McDonald’s has a consensus rating of “Moderate Buy” and a consensus target price of $321.35.

McDonald’s Trading Down 0.1%

The company has a market cap of $180.82 billion, a P/E ratio of 20.76, a price-to-earnings-growth ratio of 2.76 and a beta of 0.41. The company has a 50 day moving average price of $269.13 and a 200-day moving average price of $288.10.

McDonald’s (NYSE:MCD) last released its quarterly earnings data 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. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same period last year, the firm posted $3.19 earnings per share. McDonald’s’s revenue was up 3.7% compared to the same quarter last year. Equities analysts expect that McDonald’s Corporation will post 12.87 earnings per share for the current year.

McDonald’s Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Tuesday, September 1st will be paid 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 is Tuesday, September 1st. McDonald’s’s dividend payout ratio (DPR) is presently 60.44%.

Hedge Funds Weigh In On McDonald’s

A number of institutional investors have recently added to or reduced their stakes in MCD. IFC & Insurance Marketing Inc. acquired a new stake in McDonald’s in the fourth quarter valued at approximately $29,000. Abound Financial LLC bought a new position in shares of McDonald’s in the 4th quarter valued at $30,000. Entrust Financial LLC bought a new position in shares of McDonald’s in the 4th quarter valued at $31,000. Purpose Unlimited Inc. acquired a new stake in shares of McDonald’s during the 4th quarter valued at $31,000. Finally, GKV Capital Management Co. Inc. bought a new stake in McDonald’s during the 1st quarter worth $33,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

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.