Mcdonald’s Corp (MCD) Receives $188.93 Average PT from Analysts

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Shares of Mcdonald’s Corp (NYSE:MCD) have earned an average rating of “Buy” from the thirty-two brokerages that are currently covering the stock, MarketBeat.com reports. Seven equities research analysts have rated the stock with a hold recommendation and twenty-five have assigned a buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $188.93.

Several analysts have recently weighed in on MCD shares. Wells Fargo & Co reaffirmed a “buy” rating and set a $185.00 price target on shares of Mcdonald’s in a research note on Monday, September 24th. ValuEngine raised shares of Mcdonald’s from a “hold” rating to a “buy” rating in a research note on Thursday, October 11th. Royal Bank of Canada set a $175.00 price target on shares of Mcdonald’s and gave the company a “buy” rating in a research note on Friday, September 14th. Jefferies Financial Group reaffirmed a “buy” rating and set a $190.00 price target on shares of Mcdonald’s in a research note on Tuesday, August 28th. Finally, Goldman Sachs Group lifted their price target on shares of Mcdonald’s from $179.00 to $190.00 and gave the company a “buy” rating in a research note on Tuesday, September 11th.

Shares of Mcdonald’s stock traded up $1.09 on Friday, hitting $183.80. 88,033 shares of the company traded hands, compared to its average volume of 4,845,239. Mcdonald’s has a 52 week low of $146.84 and a 52 week high of $182.86. The company has a market capitalization of $137.12 billion, a PE ratio of 27.53, a P/E/G ratio of 2.60 and a beta of 0.53.

Mcdonald’s (NYSE:MCD) last posted its quarterly earnings results on Tuesday, October 23rd. The fast-food giant reported $2.10 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.99 by $0.11. Mcdonald’s had a net margin of 24.56% and a negative return on equity of 116.43%. The firm had revenue of $5.37 billion during the quarter, compared to the consensus estimate of $5.28 billion. During the same quarter in the previous year, the firm posted $1.76 earnings per share. The company’s revenue was down 6.7% on a year-over-year basis. As a group, research analysts expect that Mcdonald’s will post 7.75 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 17th. Investors of record on Monday, December 3rd will be paid a $1.16 dividend. This is an increase from Mcdonald’s’s previous quarterly dividend of $1.01. The ex-dividend date of this dividend is Friday, November 30th. This represents a $4.64 dividend on an annualized basis and a yield of 2.52%. Mcdonald’s’s payout ratio is 60.66%.

In other news, CEO Stephen Easterbrook sold 201,123 shares of the company’s stock in a transaction on Wednesday, October 24th. The stock was sold at an average price of $175.63, for a total transaction of $35,323,232.49. Following the transaction, the chief executive officer now directly owns 48,925 shares of the company’s stock, valued at $8,592,697.75. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Ian Frederick Borden sold 4,782 shares of the company’s stock in a transaction on Thursday, October 25th. The stock was sold at an average price of $177.68, for a total value of $849,665.76. The disclosure for this sale can be found here. Insiders sold 221,041 shares of company stock valued at $38,839,407 in the last three months. 0.22% of the stock is currently owned by insiders.

Hedge funds have recently modified their holdings of the company. Fundsmith Equity Fund L.P. acquired a new position in shares of Mcdonald’s during the second quarter worth $1,191,239,000. AustralianSuper Pty Ltd purchased a new stake in shares of Mcdonald’s during the second quarter valued at $179,723,000. Scopus Asset Management L.P. grew its holdings in shares of Mcdonald’s by 20.0% during the second quarter. Scopus Asset Management L.P. now owns 300,000 shares of the fast-food giant’s stock valued at $47,007,000 after buying an additional 50,000 shares during the last quarter. Quad Cities Investment Group LLC purchased a new stake in shares of Mcdonald’s during the second quarter valued at $110,000. Finally, Polaris Greystone Financial Group LLC purchased a new stake in shares of Mcdonald’s during the third quarter valued at $282,000. 66.92% of the stock is currently owned by institutional investors and hedge funds.

About Mcdonald’s

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2017, the company operated 37,241 restaurants, including 34,108 franchised restaurants comprising 21,366 franchised to conventional franchisees, 6,945 licensed to developmental licensees, and 5,797 licensed to foreign affiliates; and 3,133 company-operated restaurants.

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Analyst Recommendations for Mcdonald`s (NYSE:MCD)

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