McDonald's (MCD) Raised to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of McDonald's (NYSE:MCD) from a sell rating to a hold rating in a report published on Thursday morning.

According to Zacks, “McDonald’s shares outpaced the industry in the past year. Notably, growing guest count remains McDonald’s top priority and it is undertaking various sales and digital initiatives to this end. Increased focus on delivery, enhancement of digital capabilities, and accelerated deployment of Experience of the Future restaurants in the U.S should drive growth too. Efforts to attract customers in International Lead & High Growth Markets also bode well. In fact, global comps at McDonald’s have been positive over the past eight quarters. Yet, high labor costs and currency headwinds might keep profits under pressure. Earnings estimates for the current year have declined over the last two months raising concern. Even so, augmented focus on refranchising will cut the company’s capital requirements and facilitate EPS growth and ROE expansion in the long run.”

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A number of other equities research analysts have also commented on MCD. Royal Bank of Canada set a $190.00 price objective on shares of McDonald's and gave the stock a buy rating in a report on Thursday, December 21st. Nomura set a $190.00 price objective on shares of McDonald's and gave the stock a buy rating in a report on Tuesday, January 2nd. Robert W. Baird set a $190.00 price objective on shares of McDonald's and gave the stock a buy rating in a report on Tuesday, January 2nd. Stifel Nicolaus set a $172.00 price objective on shares of McDonald's and gave the stock a neutral rating in a report on Wednesday, January 3rd. Finally, SunTrust Banks set a $187.00 price objective on shares of McDonald's and gave the stock a buy rating in a report on Wednesday, January 3rd. Nine research analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company. McDonald's presently has an average rating of Buy and a consensus target price of $183.16.

Shares of NYSE MCD opened at $158.77 on Thursday. The firm has a market cap of $126,142.45, a PE ratio of 23.80, a PEG ratio of 2.40 and a beta of 0.64. McDonald's has a twelve month low of $133.15 and a twelve month high of $178.70. The company has a current ratio of 1.84, a quick ratio of 1.82 and a debt-to-equity ratio of -9.04.

McDonald's (NYSE:MCD) last issued its quarterly earnings data on Tuesday, January 30th. The fast-food giant reported $1.71 EPS for the quarter, topping analysts’ consensus estimates of $1.59 by $0.12. McDonald's had a net margin of 22.75% and a negative return on equity of 201.76%. The business had revenue of $5.34 billion for the quarter, compared to analyst estimates of $5.22 billion. During the same period last year, the business posted $1.44 earnings per share. The firm’s quarterly revenue was down 11.4% on a year-over-year basis. equities analysts anticipate that McDonald's will post 7.57 earnings per share for the current fiscal year.

In other news, insider Douglas M. Goare sold 34,575 shares of the business’s stock in a transaction dated Wednesday, January 31st. The shares were sold at an average price of $173.53, for a total transaction of $5,999,799.75. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Catherine A. Hoovel sold 1,398 shares of the business’s stock in a transaction dated Wednesday, January 31st. The stock was sold at an average price of $170.54, for a total transaction of $238,414.92. Following the transaction, the vice president now owns 1,398 shares in the company, valued at $238,414.92. The disclosure for this sale can be found here. 0.24% of the stock is owned by insiders.

Several institutional investors have recently added to or reduced their stakes in MCD. Vanguard Group Inc. boosted its holdings in shares of McDonald's by 1.6% during the 2nd quarter. Vanguard Group Inc. now owns 57,300,686 shares of the fast-food giant’s stock worth $8,776,174,000 after buying an additional 906,303 shares during the period. BlackRock Inc. boosted its holdings in shares of McDonald's by 0.9% during the 4th quarter. BlackRock Inc. now owns 55,535,177 shares of the fast-food giant’s stock worth $9,558,713,000 after buying an additional 481,739 shares during the period. Capital World Investors boosted its holdings in shares of McDonald's by 2.8% during the 2nd quarter. Capital World Investors now owns 22,288,104 shares of the fast-food giant’s stock worth $3,413,646,000 after buying an additional 606,232 shares during the period. Capital Research Global Investors boosted its holdings in shares of McDonald's by 15.0% during the 2nd quarter. Capital Research Global Investors now owns 12,058,661 shares of the fast-food giant’s stock worth $1,846,905,000 after buying an additional 1,572,074 shares during the period. Finally, Northern Trust Corp boosted its holdings in shares of McDonald's by 3.1% during the 2nd quarter. Northern Trust Corp now owns 11,835,647 shares of the fast-food giant’s stock worth $1,812,747,000 after buying an additional 360,212 shares during the period. Institutional investors own 68.49% of the company’s stock.

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McDonald's Company Profile

McDonald’s Corporation (McDonald’s) operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally relevant menu of 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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