Wedbush Analysts Boost Earnings Estimates for McDonald’s

McDonald’s Co. (NYSE:MCD) – Equities research analysts at Wedbush boosted their Q4 2024 earnings per share (EPS) estimates for McDonald’s in a research note issued on Wednesday, October 30th. Wedbush analyst N. Setyan now expects that the fast-food giant will earn $2.93 per share for the quarter, up from their previous estimate of $2.90. Wedbush has a “Outperform” rating and a $295.00 price target on the stock. The consensus estimate for McDonald’s’ current full-year earnings is $11.73 per share.

McDonald’s (NYSE:MCD) last posted its earnings results on Tuesday, October 29th. The fast-food giant reported $3.23 earnings per share for the quarter, topping analysts’ consensus estimates of $3.18 by $0.05. The business had revenue of $6.87 billion for the quarter, compared to analyst estimates of $6.82 billion. McDonald’s had a net margin of 32.25% and a negative return on equity of 178.68%. McDonald’s’s revenue was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.19 EPS.

Other research analysts also recently issued research reports about the company. Baird R W downgraded McDonald’s from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 23rd. JPMorgan Chase & Co. boosted their price objective on shares of McDonald’s from $270.00 to $290.00 and gave the stock an “overweight” rating in a research note on Monday, September 16th. UBS Group raised their price target on McDonald’s from $305.00 to $345.00 and gave the company a “buy” rating in a report on Wednesday, October 9th. Evercore ISI upped their price objective on McDonald’s from $320.00 to $340.00 and gave the company an “outperform” rating in a research report on Tuesday, October 15th. Finally, The Goldman Sachs Group raised their price target on shares of McDonald’s from $284.00 to $325.00 and gave the company a “neutral” rating in a report on Tuesday, September 24th. Thirteen equities research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. According to MarketBeat.com, McDonald’s has a consensus rating of “Moderate Buy” and a consensus price target of $319.46.

McDonald’s Stock Performance

Shares of McDonald’s stock opened at $292.17 on Thursday. The company has a fifty day moving average of $298.25 and a 200-day moving average of $275.58. McDonald’s has a 52-week low of $243.53 and a 52-week high of $317.90. The stock has a market capitalization of $209.59 billion, a price-to-earnings ratio of 25.56, a price-to-earnings-growth ratio of 4.13 and a beta of 0.73.

McDonald’s Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be given a dividend of $1.77 per share. The ex-dividend date of this dividend is Monday, December 2nd. This represents a $7.08 annualized dividend and a yield of 2.42%. This is a positive change from McDonald’s’s previous quarterly dividend of $1.67. McDonald’s’s dividend payout ratio (DPR) is 61.94%.

Insiders Place Their Bets

In other news, CEO Christopher J. Kempczinski sold 11,727 shares of the firm’s stock in a transaction that occurred on Monday, September 23rd. The stock was sold at an average price of $300.03, for a total value of $3,518,451.81. Following the completion of the sale, the chief executive officer now directly owns 49,885 shares of the company’s stock, valued at $14,966,996.55. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In related news, insider Joseph M. Erlinger sold 1,099 shares of the stock in a transaction dated Wednesday, October 23rd. The shares were sold at an average price of $292.38, for a total value of $321,325.62. Following the sale, the insider now directly owns 10,385 shares of the company’s stock, valued at $3,036,366.30. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Christopher J. Kempczinski sold 11,727 shares of the firm’s stock in a transaction dated Monday, September 23rd. The stock was sold at an average price of $300.03, for a total transaction of $3,518,451.81. Following the completion of the sale, the chief executive officer now directly owns 49,885 shares of the company’s stock, valued at approximately $14,966,996.55. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 34,097 shares of company stock valued at $10,256,818 in the last three months. Corporate insiders own 0.23% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

Hedge funds and other institutional investors have recently modified their holdings of the business. TFB Advisors LLC increased its stake in McDonald’s by 3.6% in the third quarter. TFB Advisors LLC now owns 1,863 shares of the fast-food giant’s stock worth $567,000 after purchasing an additional 64 shares during the period. Tandem Investment Advisors Inc. purchased a new position in McDonald’s in the 3rd quarter worth about $218,000. Mainstream Capital Management LLC bought a new stake in McDonald’s during the 3rd quarter valued at about $386,000. Western Pacific Wealth Management LP boosted its position in McDonald’s by 31.8% in the 3rd quarter. Western Pacific Wealth Management LP now owns 626 shares of the fast-food giant’s stock valued at $191,000 after buying an additional 151 shares during the period. Finally, Hara Capital LLC purchased a new stake in McDonald’s in the 3rd quarter valued at about $44,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald’s Company Profile

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.