McDonald’s’ (MCD) “Outperform” Rating Reiterated at Wedbush

Wedbush restated their outperform rating on shares of McDonald’s (NYSE:MCD) in a research note issued to investors on Wednesday morning, Benzinga reports. The firm currently has a $295.00 price objective on the fast-food giant’s stock.

Several other analysts have also recently weighed in on MCD. Barclays raised their price objective on shares of McDonald’s from $300.00 to $325.00 and gave the company an “overweight” rating in a research report on Tuesday. KeyCorp raised their price objective on shares of McDonald’s from $305.00 to $330.00 and gave the company an “overweight” rating in a research report on Monday, October 7th. UBS Group raised their price objective on shares of McDonald’s from $305.00 to $345.00 and gave the company a “buy” rating in a research report on Wednesday, October 9th. Truist Financial raised their price objective on shares of McDonald’s from $295.00 to $350.00 and gave the company a “buy” rating in a research report on Tuesday, October 15th. Finally, Citigroup raised their price objective on shares of McDonald’s from $301.00 to $317.00 and gave the company a “neutral” rating in a research report on Wednesday, October 2nd. Thirteen investment analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $318.22.

McDonald’s Price Performance

NYSE MCD opened at $292.50 on Wednesday. McDonald’s has a 1 year low of $243.53 and a 1 year high of $317.90. The stock has a market capitalization of $210.80 billion, a PE ratio of 24.83, a P/E/G ratio of 4.13 and a beta of 0.73. The company’s 50 day simple moving average is $297.78 and its two-hundred day simple moving average is $274.88.

McDonald’s (NYSE:MCD) last posted its earnings results on Monday, July 29th. The fast-food giant reported $2.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.07 by ($0.10). McDonald’s had a negative return on equity of 178.68% and a net margin of 32.25%. The firm had revenue of $6.49 billion during the quarter, compared to analysts’ expectations of $6.62 billion. During the same quarter in the prior year, the company earned $3.17 earnings per share. The business’s revenue for the quarter was down .1% compared to the same quarter last year. On average, research analysts anticipate that McDonald’s will post 11.73 EPS for the current year.

McDonald’s Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be paid a dividend of $1.77 per share. This is a positive change from McDonald’s’s previous quarterly dividend of $1.67. The ex-dividend date is Monday, December 2nd. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.42%. McDonald’s’s payout ratio is presently 60.10%.

Insider Activity

In related news, insider Joseph M. Erlinger sold 1,098 shares of McDonald’s stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $288.70, for a total transaction of $316,992.60. Following the completion of the transaction, the insider now directly owns 12,583 shares of the company’s stock, valued at $3,632,712.10. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. In related news, CEO Christopher J. Kempczinski sold 11,727 shares of McDonald’s stock in a transaction dated Monday, September 23rd. The shares were sold at an average price of $300.03, for a total transaction of $3,518,451.81. Following the completion of the transaction, 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 sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 1,098 shares of McDonald’s stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $288.70, for a total transaction of $316,992.60. Following the transaction, the insider now directly owns 12,583 shares of the company’s stock, valued at approximately $3,632,712.10. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 34,097 shares of company stock valued at $10,256,818. Corporate insiders own 0.23% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Steigerwald Gordon & Koch Inc. raised its holdings in McDonald’s by 2.4% in the third quarter. Steigerwald Gordon & Koch Inc. now owns 1,422 shares of the fast-food giant’s stock worth $433,000 after buying an additional 33 shares during the last quarter. Riversedge Advisors LLC lifted its stake in shares of McDonald’s by 2.0% in the third quarter. Riversedge Advisors LLC now owns 1,686 shares of the fast-food giant’s stock worth $513,000 after buying an additional 33 shares in the last quarter. Proquility Private Wealth Partners LLC lifted its stake in shares of McDonald’s by 1.0% in the third quarter. Proquility Private Wealth Partners LLC now owns 3,472 shares of the fast-food giant’s stock worth $1,057,000 after buying an additional 35 shares in the last quarter. Founders Financial Alliance LLC lifted its stake in shares of McDonald’s by 0.7% in the second quarter. Founders Financial Alliance LLC now owns 4,980 shares of the fast-food giant’s stock worth $1,269,000 after buying an additional 36 shares in the last quarter. Finally, McAdam LLC lifted its stake in shares of McDonald’s by 1.7% in the third quarter. McAdam LLC now owns 2,176 shares of the fast-food giant’s stock worth $663,000 after buying an additional 36 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

About McDonald’s

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.