McDonald’s Co. (NYSE:MCD) Receives Average Recommendation of “Moderate Buy” from Brokerages

McDonald’s Co. (NYSE:MCD) has been given a consensus rating of “Moderate Buy” by the thirty research firms that are currently covering the company, Marketbeat Ratings reports. Twelve research analysts have rated the stock with a hold recommendation and eighteen have assigned a buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $319.64.

MCD has been the subject of several recent research reports. Barclays increased their price target on McDonald’s from $300.00 to $325.00 and gave the company an “overweight” rating in a research report on Tuesday, October 22nd. Argus raised McDonald’s from a “hold” rating to a “buy” rating in a research report on Tuesday, October 8th. Wells Fargo & Company raised their price objective on McDonald’s from $285.00 to $350.00 and gave the company an “overweight” rating in a research report on Monday, October 21st. JPMorgan Chase & Co. raised their price objective on McDonald’s from $270.00 to $290.00 and gave the company an “overweight” rating in a research report on Monday, September 16th. Finally, TD Cowen reaffirmed a “hold” rating and issued a $300.00 price objective on shares of McDonald’s in a research report on Tuesday, October 29th.

McDonald’s Stock Performance

NYSE:MCD opened at $298.78 on Friday. The company has a market cap of $214.11 billion, a PE ratio of 26.23, a PEG ratio of 3.92 and a beta of 0.73. McDonald’s has a 52-week low of $243.53 and a 52-week high of $317.90. The stock has a 50-day simple moving average of $299.53 and a 200 day simple moving average of $279.58.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Tuesday, October 29th. The fast-food giant reported $3.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.18 by $0.05. The business had revenue of $6.87 billion during the quarter, compared to the consensus estimate of $6.82 billion. McDonald’s had a negative return on equity of 175.42% and a net margin of 31.79%. McDonald’s’s quarterly revenue was up 2.7% on a year-over-year basis. During the same period last year, the company earned $3.19 earnings per share. On average, research analysts predict that McDonald’s will post 11.77 earnings per share for the current fiscal year.

McDonald’s Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 16th. Investors 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 dividend on an annualized basis and a yield of 2.37%. This is a positive change from McDonald’s’s previous quarterly dividend of $1.67. McDonald’s’s payout ratio is currently 62.16%.

Insider Buying and Selling

In other McDonald’s news, EVP Marion K. Gross sold 1,499 shares of McDonald’s stock in a transaction dated Friday, November 1st. The stock was sold at an average price of $294.51, for a total transaction of $441,470.49. Following the transaction, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at approximately $459,435.60. The trade was a 49.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Joseph M. Erlinger sold 1,099 shares of McDonald’s stock in a transaction dated Monday, September 23rd. The stock was sold at an average price of $298.57, for a total value of $328,128.43. Following the transaction, the insider now directly owns 11,484 shares in the company, valued at $3,428,777.88. The trade was a 8.73 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 34,099 shares of company stock worth $10,273,786 in the last 90 days. Insiders own 0.23% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Steigerwald Gordon & Koch Inc. lifted its position in McDonald’s by 2.4% in the 3rd quarter. Steigerwald Gordon & Koch Inc. now owns 1,422 shares of the fast-food giant’s stock valued at $433,000 after acquiring an additional 33 shares in the last quarter. Riversedge Advisors LLC raised its stake in McDonald’s by 2.0% during the 3rd quarter. Riversedge Advisors LLC now owns 1,686 shares of the fast-food giant’s stock valued at $513,000 after buying an additional 33 shares during the last quarter. Proquility Private Wealth Partners LLC raised its stake in McDonald’s by 1.0% during the 3rd quarter. Proquility Private Wealth Partners LLC now owns 3,472 shares of the fast-food giant’s stock valued at $1,057,000 after buying an additional 35 shares during the last quarter. Clear Creek Financial Management LLC raised its stake in McDonald’s by 2.8% during the 3rd quarter. Clear Creek Financial Management LLC now owns 1,300 shares of the fast-food giant’s stock valued at $396,000 after buying an additional 35 shares during the last quarter. Finally, GDS Wealth Management raised its stake in McDonald’s by 1.4% during the 3rd quarter. GDS Wealth Management now owns 2,504 shares of the fast-food giant’s stock valued at $762,000 after buying an additional 35 shares during the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

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.