Oppenheimer Lowers McDonald’s (NYSE:MCD) Price Target to $295.00

by · The Markets Daily

McDonald’s (NYSE:MCD – Get Free Report) had its price objective reduced by analysts at Oppenheimer from $325.00 to $295.00 in a note issued to investors on Thursday, Briefing.com reports. The brokerage currently has an “outperform” rating on the fast-food giant’s stock. Oppenheimer’s price objective would suggest a potential upside of 22.67% from the stock’s current price.

Several other equities analysts have also issued reports on the company. Wells Fargo & Company cut their price target on McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, July 16th. Needham & Company LLC reissued a “buy” rating on shares of McDonald’s in a research report on Monday. Piper Sandler set a $286.00 price objective on McDonald’s in a report on Tuesday, August 4th. Mizuho lowered their price target on shares of McDonald’s from $300.00 to $290.00 and set a “neutral” rating on the stock in a research note on Friday, July 31st. Finally, JPMorgan Chase & Co. reduced their price objective on shares of McDonald’s from $280.00 to $260.00 and set an “overweight” rating for the company in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $303.96.

View Our Latest Research Report on McDonald’s

McDonald’s Stock Performance

Shares of NYSE:MCD traded up $2.15 during midday trading on Thursday, hitting $240.47. The company’s stock had a trading volume of 3,151,701 shares, compared to its average volume of 4,089,509. McDonald’s has a fifty-two week low of $234.03 and a fifty-two week high of $341.75. The stock’s 50 day simple moving average is $263.58 and its 200 day simple moving average is $281.71. The stock has a market capitalization of $170.17 billion, a price-to-earnings ratio of 19.57, a PEG ratio of 2.71 and a beta of 0.41.

McDonald’s (NYSE:MCD – Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.06. The company had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. McDonald’s had a net margin of 31.72% and a negative return on equity of 572.06%. The business’s quarterly revenue was up 3.7% on a year-over-year basis. During the same period last year, the business posted $3.19 EPS. As a group, analysts anticipate that McDonald’s will post 12.88 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Norges Bank bought a new position in McDonald’s in the fourth quarter worth approximately $2,890,438,000. Bank of New York Mellon Corp purchased a new stake in McDonald’s during the 2nd quarter valued at approximately $1,359,276,000. Diamant Asset Management Inc. boosted its position in shares of McDonald’s by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock worth $806,917,000 after acquiring an additional 2,587,986 shares during the last quarter. J. Stern & Co. LLP grew its stake in McDonald’s by 9,867.5% during the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after acquiring an additional 2,515,515 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in shares of McDonald’s by 49.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant’s stock valued at $948,779,000 after purchasing an additional 1,033,041 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Key Headlines Impacting McDonald’s

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

  • Positive Sentiment: McDonald’s announced a nearly 4% dividend increase, reinforcing its appeal as a mature income investment and supporting the case that the stock’s valuation has become more attractive after its decline. McDonald’s Increased Its Dividend by Nearly 4%
  • Positive Sentiment: The company’s NEXT strategy calls for approximately $8.5 billion of franchisee support through 2036, including restaurant remodels, technology upgrades, employee training and productivity improvements. Management expects the investments to improve restaurant economics and margins over time. McDonald’s bets $8.5 billion on a productivity makeover
  • Positive Sentiment: Growth initiatives include hand-breaded and grilled chicken, protein-focused bowls and wraps aimed at attracting health-conscious consumers and GLP-1 users, as well as AI-enabled ordering and a potential advertising network. These efforts could diversify revenue and help recover market share. Why McDonald’s is following Walmart and Amazon into advertising
  • Positive Sentiment: BTIG maintained a “buy” rating with a $295 price target, while Royal Bank of Canada’s $285 target still implies substantial upside from recent levels, suggesting analysts see long-term recovery potential.
  • Neutral Sentiment: Royal Bank of Canada lowered its target to $285 and shifted to “sector perform,” reflecting a more cautious near-term outlook despite retaining meaningful upside.
  • Negative Sentiment: Management warned that elevated inflation and flat customer traffic could persist. Investors were also concerned that roughly $5 billion of the franchisee support plan will be spent by 2030, creating significant near-term cash commitments before the benefits of modernization are realized. McDonald’s expects inflation to keep traffic flat

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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