Zacks Investment Research upgraded shares of McDonald’s Corp. (NYSE:MCD) from a hold rating to a buy rating in a research report report published on Tuesday morning. The firm currently has $131.00 price objective on the fast-food giant’s stock.
According to Zacks, “McDonald’s has turned itself around in the domestic market, mainly driven by its successful all-day Breakfast platform. The company is further trying to strengthen its position in the U.S. through various sales initiatives like menu innovation, introduction of value meals, efficient marketing and promotions, and improved service. Backed by these efforts, in the second-quarter 2016, McDonald’s posted positive comps for the fourth consecutive quarter in the region. The company enjoys moderate growth prospects through its exposure in the under-penetrated international markets. Moreover, the company has positive record of earnings surprises in recent quarters. Estimates too have been mostly going up ahead of McDonald’s third quarter earnings release. However, soft industry growth, macroeconomic concerns in various parts of the world along with negative currency translation remain potent headwinds.”
Several other equities research analysts have also commented on the stock. Vetr lowered shares of McDonald’s Corp. from a buy rating to a hold rating and set a $121.01 price objective on the stock. in a research report on Wednesday, September 21st. Credit Suisse Group AG restated an outperform rating and issued a $132.00 target price on shares of McDonald’s Corp. in a report on Friday, September 16th. Citigroup Inc. reduced their target price on shares of McDonald’s Corp. from $130.00 to $122.00 and set a neutral rating on the stock in a report on Tuesday, September 13th. Robert W. Baird restated an outperform rating on shares of McDonald’s Corp. in a report on Thursday, September 8th. Finally, Canaccord Genuity initiated coverage on shares of McDonald’s Corp. in a report on Monday, August 22nd. They issued a hold rating and a $122.00 target price on the stock. Two investment analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and fourteen have given a buy rating to the stock. The company presently has a consensus rating of Hold and an average target price of $126.12.
Shares of McDonald’s Corp. (NYSE:MCD) traded down 1.92% during midday trading on Tuesday, hitting $114.64. 1,542,879 shares of the stock were exchanged. The firm has a 50-day moving average price of $116.38 and a 200 day moving average price of $122.21. The firm has a market cap of $97.83 billion, a PE ratio of 21.89 and a beta of 0.59. McDonald’s Corp. has a 12-month low of $97.13 and a 12-month high of $131.96.
McDonald’s Corp. (NYSE:MCD) last released its quarterly earnings data on Tuesday, July 26th. The fast-food giant reported $1.45 EPS for the quarter, topping the consensus estimate of $1.39 by $0.06. McDonald’s Corp. had a net margin of 18.73% and a return on equity of 97.56%. The business had revenue of $6.27 billion for the quarter, compared to analyst estimates of $6.28 billion. During the same period in the previous year, the firm earned $1.26 EPS. The business’s revenue for the quarter was down 3.6% compared to the same quarter last year. Analysts predict that McDonald’s Corp. will post $5.56 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Friday, September 16th. Stockholders of record on Thursday, September 1st were issued a dividend of $0.89 per share. This represents a $3.56 dividend on an annualized basis and a dividend yield of 3.05%. The ex-dividend date of this dividend was Tuesday, August 30th. McDonald’s Corp.’s dividend payout ratio (DPR) is 68.59%.
In other news, Chairman Andrew J. Mckenna sold 70,000 shares of the firm’s stock in a transaction on Thursday, August 4th. The stock was sold at an average price of $118.28, for a total transaction of $8,279,600.00. Following the transaction, the chairman now directly owns 108,841 shares of the company’s stock, valued at $12,873,713.48. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.28% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the stock. Invictus RG raised its position in shares of McDonald’s Corp. by 364.1% in the first quarter. Invictus RG now owns 919 shares of the fast-food giant’s stock worth $115,000 after buying an additional 721 shares during the period. Glassman Wealth Services raised its position in shares of McDonald’s Corp. by 27.4% in the second quarter. Glassman Wealth Services now owns 930 shares of the fast-food giant’s stock worth $112,000 after buying an additional 200 shares during the period. RPg Family Wealth Advisory LLC raised its position in shares of McDonald’s Corp. by 572.4% in the first quarter. RPg Family Wealth Advisory LLC now owns 975 shares of the fast-food giant’s stock worth $123,000 after buying an additional 830 shares during the period. Thomas J. Herzfeld Advisors Inc. raised its position in McDonald’s Corp. by 183.5% in the second quarter. Thomas J. Herzfeld Advisors Inc. now owns 1,066 shares of the fast-food giant’s stock worth $128,000 after buying an additional 690 shares during the last quarter. Finally, MU Investments Co. Ltd. purchased a new position in McDonald’s Corp. during the second quarter worth about $163,000. 69.10% of the stock is currently owned by institutional investors.
About McDonald’s Corp.
McDonald’s Corporation (McDonald’s) operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally-relevant menu of quality food and drinks sold at various price points in over 100 countries. The Company’s segments include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate.
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