McDonald’s (NYSE:MCD) Sets New 1-Year Low – Here’s Why
by Doug Wharley · The Cerbat GemMcDonald’s Corporation (NYSE:MCD – Get Free Report)’s share price reached a new 52-week low on Tuesday . The company traded as low as $283.02 and last traded at $284.6980, with a volume of 641118 shares. The stock had previously closed at $284.10.
Key McDonald’s News
Here are the key news stories impacting McDonald’s this week:
- Positive Sentiment: Q1 beat on both EPS and revenue — adjusted EPS $2.83 vs. ~$2.74 expected and revenue $6.52B vs. ~$6.47B; global comparable sales +3.8%, systemwide sales topped $34B and loyalty sales exceeded $9B for the quarter, supporting the earnings upside. PR Newswire
- Positive Sentiment: Value-focused promotions and the viral “Big Arch” burger helped drive U.S. comps and marketing momentum, showing the company can attract traffic in a cost‑sensitive consumer environment. WSJ
- Positive Sentiment: Long‑term growth story intact in China — management is expanding aggressively there (targeting ~10,000 locations by end of 2028), which investors view as a meaningful growth runway. CNBC
- Neutral Sentiment: Options and trader interest spiked after earnings, implying higher short‑term volatility and positioning around the name. Schaeffers Research
- Neutral Sentiment: Detailed call/transcript coverage is available for investors parsing guidance, loyalty metrics and regional performance for modeling updates. Moby earnings summary
- Negative Sentiment: TD Cowen cut its price target to $300 from $330 and moved to a “hold,” which can pressure momentum and weighs on near‑term upside expectations. Benzinga
- Negative Sentiment: Management flagged rising consumer caution and higher gas prices as risks that could curb traffic among lower‑income diners, creating uncertainty for future comp trends. PYMNTS
Analyst Upgrades and Downgrades
Several research analysts have recently commented on the company. Rothschild & Co Redburn raised McDonald’s from a “sell” rating to a “neutral” rating and boosted their price target for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Erste Group Bank downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Royal Bank Of Canada increased their price target on shares of McDonald’s from $320.00 to $330.00 and gave the company a “sector perform” rating in a research report on Thursday, February 12th. Citigroup raised their price target on shares of McDonald’s from $371.00 to $375.00 and gave the company a “buy” rating in a report on Thursday, February 12th. Finally, Weiss Ratings lowered shares of McDonald’s from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday, April 27th. Sixteen investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $339.21.
Get Our Latest Research Report on MCD
McDonald’s Stock Down 0.1%
The company’s 50 day moving average price is $311.40 and its 200 day moving average price is $311.40. The firm has a market capitalization of $201.78 billion, a price-to-earnings ratio of 23.75, a P/E/G ratio of 2.63 and a beta of 0.43.
McDonald’s (NYSE:MCD – Get Free Report) last released its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.74 by $0.09. The firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald’s had a negative return on equity of 343.90% and a net margin of 31.85%.The firm’s revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the firm earned $2.67 EPS. As a group, analysts expect that McDonald’s Corporation will post 13.17 earnings per share for the current year.
Insider Transactions at McDonald’s
In other news, EVP Jonathan Banner sold 6,201 shares of the firm’s stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $333.29, for a total value of $2,066,731.29. Following the completion of the transaction, the executive vice president directly owned 2,291 shares in the company, valued at $763,567.39. This trade represents a 73.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Christopher J. Kempczinski sold 26,276 shares of McDonald’s stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $333.54, for a total value of $8,764,097.04. Following the sale, the chief executive officer directly owned 22,900 shares of the company’s stock, valued at $7,638,066. This trade represents a 53.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 71,990 shares of company stock worth $23,824,113 in the last 90 days. 0.26% of the stock is owned by company insiders.
Institutional Trading of McDonald’s
Several large investors have recently made changes to their positions in the business. Evergreen Private Wealth LLC raised its stake in shares of McDonald’s by 162.5% during the 3rd quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant’s stock valued at $26,000 after buying an additional 52 shares during the last quarter. Your Advocates Ltd. LLP purchased a new stake in shares of McDonald’s in the fourth quarter worth about $27,000. Park Place Capital Corp grew its holdings in McDonald’s by 95.7% during the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock worth $28,000 after acquiring an additional 45 shares during the period. IFC & Insurance Marketing Inc. acquired a new stake in McDonald’s during the fourth quarter worth about $29,000. Finally, Abound Financial LLC purchased a new position in McDonald’s during the fourth quarter valued at approximately $30,000. 70.29% of the stock is owned by hedge funds and other institutional investors.
McDonald’s Company Profile
McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.
Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.