McDonald’s (NYSE:MCD) Stock Price Down 1.1% – Time to Sell?

by · The Markets Daily

McDonald’s Corporation (NYSE:MCD – Get Free Report) was down 1.1% during trading on Tuesday. The company traded as low as $261.00 and last traded at $262.7450. 6,083,772 shares were traded during mid-day trading, an increase of 41% from the average daily volume of 4,303,062 shares. The stock had previously closed at $265.64.

Key Stories Impacting McDonald’s

Here are the key news stories impacting McDonald’s this week:

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft decreased their target price on shares of McDonald’s from $325.00 to $300.00 and set a “buy” rating for the company in a report on Monday, September 14th. Argus reduced their price target on shares of McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a research note on Wednesday, August 26th. Royal Bank Of Canada decreased their price objective on shares of McDonald’s from $290.00 to $285.00 and set a “sector perform” rating for the company in a report on Thursday, September 24th. Guggenheim lowered their price target on McDonald’s from $290.00 to $250.00 and set a “neutral” rating on the stock in a report on Monday, October 5th. Finally, Weiss Ratings lowered shares of McDonald’s from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $294.73.

Check Out Our Latest Stock Analysis on McDonald’s

McDonald’s Trading Down 1.1%

The company has a market cap of $185.93 billion, a P/E ratio of 21.34, a P/E/G ratio of 2.86 and a beta of 0.44. The company has a 50-day simple moving average of $248.16 and a 200 day simple moving average of $283.22.

McDonald’s (NYSE:MCD – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 EPS for the quarter, topping the consensus estimate of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%. The firm had revenue of $7.10 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same period in the previous year, the company posted $3.19 EPS. The business’s revenue for the quarter was up 3.7% compared to the same quarter last year. On average, equities analysts forecast that McDonald’s Corporation will post 12.83 EPS for the current fiscal year.

McDonald’s Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be given a dividend of $1.93 per share. The ex-dividend date is Tuesday, December 1st. This is a positive change from McDonald’s’s previous quarterly dividend of $1.86. This represents a $7.72 annualized dividend and a dividend yield of 2.9%. McDonald’s’s dividend payout ratio (DPR) is presently 62.71%.

Institutional Trading of McDonald’s

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. GKV Capital Management Co. Inc. acquired a new stake in shares of McDonald’s in the 1st quarter valued at about $33,000. POM Investment Strategies LLC grew its holdings in McDonald’s by 46.2% during the second quarter. POM Investment Strategies LLC now owns 174 shares of the fast-food giant’s stock worth $47,000 after acquiring an additional 55 shares during the period. Westfuller Advisors LLC boosted its holdings in McDonald’s by 140.0% during the second quarter. Westfuller Advisors LLC now owns 180 shares of the fast-food giant’s stock worth $49,000 after buying an additional 105 shares in the last quarter. Burkett Financial Services LLC increased its position in shares of McDonald’s by 2,312.5% in the third quarter. Burkett Financial Services LLC now owns 193 shares of the fast-food giant’s stock valued at $45,000 after buying an additional 185 shares in the last quarter. Finally, Main Street Group LTD purchased a new stake in McDonald’s in the 1st quarter valued at approximately $64,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s Company Profile

(Get Free Report)

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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