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.”
Other research analysts have also recently issued reports about the company. JPMorgan Chase & Co. set a $130.00 price target on McDonald’s Corp. and gave the company a buy rating in a research note on Tuesday, July 12th. RBC Capital Markets reaffirmed a buy rating and set a $140.00 target price on shares of McDonald’s Corp. in a research report on Friday, July 22nd. Vetr raised McDonald’s Corp. from a hold rating to a buy rating and set a $128.73 target price for the company in a research report on Tuesday, July 26th. Deutsche Bank AG lowered their target price on McDonald’s Corp. from $140.00 to $135.00 and set a buy rating for the company in a research report on Wednesday, July 27th. Finally, SunTrust Banks Inc. set a $138.00 target price on McDonald’s Corp. and gave the stock a buy rating in a research report on Wednesday, July 27th. Two equities research analysts have rated the stock with a sell rating, nineteen have issued a hold rating and thirteen have assigned a buy rating to the company. The stock has a consensus rating of Hold and a consensus target price of $125.85.
McDonald’s Corp. (NYSE:MCD) traded down 0.2026% on Tuesday, hitting $113.6892. The stock had a trading volume of 515,855 shares. The company has a 50-day moving average price of $115.56 and a 200-day moving average price of $121.77. McDonald’s Corp. has a 52 week low of $101.60 and a 52 week high of $131.96. The stock has a market capitalization of $97.02 billion, a price-to-earnings ratio of 21.7088 and a beta of 0.61.
McDonald’s Corp. (NYSE:MCD) last announced its quarterly earnings results on Tuesday, July 26th. The fast-food giant reported $1.45 EPS for the quarter, beating the Zacks’ consensus estimate of $1.39 by $0.06. McDonald’s Corp. had a return on equity of 97.56% and a net margin of 18.73%. The company earned $6.27 billion during the quarter, compared to analysts’ expectations of $6.28 billion. During the same period in the prior year, the company earned $1.26 EPS. McDonald’s Corp.’s revenue was down 3.6% compared to the same quarter last year. Equities research analysts anticipate that McDonald’s Corp. will post $5.56 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Thursday, December 15th. Investors of record on Thursday, December 1st will be paid a dividend of $0.94 per share. The ex-dividend date of this dividend is Tuesday, November 29th. This represents a $3.76 annualized dividend and a yield of 3.30%. This is a boost from McDonald’s Corp.’s previous quarterly dividend of $0.89. McDonald’s Corp.’s dividend payout ratio (DPR) is currently 68.59%.
In related news, Chairman Andrew J. Mckenna sold 70,000 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the chairman now owns 108,841 shares of the company’s stock, valued at $12,873,713.48. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.28% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. UMB Bank N A MO raised its position in McDonald’s Corp. by 35.2% in the first quarter. UMB Bank N A MO now owns 110,231 shares of the fast-food giant’s stock worth $13,854,000 after buying an additional 28,677 shares during the period. Carroll Financial Associates Inc. raised its position in McDonald’s Corp. by 2.9% in the first quarter. Carroll Financial Associates Inc. now owns 11,307 shares of the fast-food giant’s stock worth $1,421,000 after buying an additional 316 shares during the period. Ronna Sue Cohen raised its position in McDonald’s Corp. by 0.3% in the first quarter. Ronna Sue Cohen now owns 15,126 shares of the fast-food giant’s stock worth $1,901,000 after buying an additional 46 shares during the period. Boston Advisors LLC raised its position in McDonald’s Corp. by 3.8% in the first quarter. Boston Advisors LLC now owns 8,210 shares of the fast-food giant’s stock worth $1,032,000 after buying an additional 300 shares during the period. Finally, Parasol Investment Management LLC raised its position in McDonald’s Corp. by 3.6% in the first quarter. Parasol Investment Management LLC now owns 4,895 shares of the fast-food giant’s stock worth $615,000 after buying an additional 169 shares during the period. 69.10% of the stock is owned by institutional investors and hedge funds.
McDonald’s Corp. Company Profile
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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