Key Points
- McDonald’s EVP Desiree Ralls-Morrison sold 2,763 shares on May 28 at an average price of $278.36, totaling about $769,109. After the sale, she still held 6,268 shares, and the transaction reduced her ownership by 30.59%.
- The stock was trading near its 12-month low, opening at $276.19, compared with a 52-week range of $271.98 to $341.75. McDonald’s shares were also below both their 50-day and 200-day moving averages.
- McDonald’s recently beat quarterly earnings expectations, reporting $2.83 EPS on revenue of $6.52 billion, while also announcing a quarterly dividend of $1.86 per share. Analysts currently have an average rating of “Hold” with a consensus price target of $334.45.
McDonald's Corporation (NYSE:MCD - Get Free Report) EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.
McDonald's Stock Down 1.1%
Shares of NYSE MCD opened at $276.19 on Tuesday. McDonald's Corporation has a 12 month low of $271.98 and a 12 month high of $341.75. The company has a market cap of $196.23 billion, a price-to-earnings ratio of 22.77, a P/E/G ratio of 2.78 and a beta of 0.41. The business has a fifty day simple moving average of $294.66 and a 200-day simple moving average of $308.42.
McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. The firm had revenue of $6.52 billion for the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.McDonald's's revenue was up 9.4% on a year-over-year basis. During the same quarter last year, the business posted $2.67 EPS. As a group, sell-side analysts expect that McDonald's Corporation will post 12.93 EPS for the current fiscal year.
McDonald's Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd will be given a $1.86 dividend. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is 61.34%.
Key Headlines Impacting McDonald's
Here are the key news stories impacting McDonald's this week:
- Positive Sentiment: McDonald’s unveiled “McDonald’s NEXT,” a companywide growth strategy focused on automation, improved restaurant design, better food quality, stronger customer service, and more effective social media marketing. Article Title
- Positive Sentiment: Analysts and recent commentary suggest McDonald’s is gaining market share in a cautious consumer environment by leaning on low-cost meals, menu innovation, and strong value marketing. Article Title
- Neutral Sentiment: McDonald’s also highlighted plans around restaurant operating efficiency and franchisee support, which could improve margins over time but will likely take time to show up in results. Article Title
- Neutral Sentiment: An executive vice president sold shares in a recent insider transaction, which is worth watching but is not necessarily a fundamental red flag on its own. Article Title
Analysts Set New Price Targets
Several brokerages recently commented on MCD. TD Cowen reduced their price target on shares of McDonald's from $330.00 to $300.00 and set a "hold" rating for the company in a research report on Thursday, May 7th. Piper Sandler boosted their target price on shares of McDonald's from $323.00 to $325.00 and gave the company a "neutral" rating in a research note on Thursday, February 12th. Truist Financial upped their target price on McDonald's from $356.00 to $370.00 and gave the company a "buy" rating in a report on Thursday, February 12th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $340.00 price objective on shares of McDonald's in a research note on Thursday, February 12th. Finally, Morgan Stanley set a $331.00 price target on shares of McDonald's in a report on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $334.45.
View Our Latest Analysis on MCD
Hedge Funds Weigh In On McDonald's
Several hedge funds and other institutional investors have recently modified their holdings of MCD. Harbour Investments Inc. increased its holdings in shares of McDonald's by 84.4% in the fourth quarter. Harbour Investments Inc. now owns 35,510 shares of the fast-food giant's stock valued at $10,853,000 after purchasing an additional 16,252 shares during the last quarter. Pittenger & Anderson Inc. boosted its stake in McDonald's by 21.9% in the 4th quarter. Pittenger & Anderson Inc. now owns 21,487 shares of the fast-food giant's stock valued at $6,567,000 after purchasing an additional 3,866 shares during the period. North Dakota State Investment Board bought a new stake in McDonald's in the 4th quarter valued at $7,493,000. Schroder Investment Management Group grew its holdings in McDonald's by 5.2% in the 3rd quarter. Schroder Investment Management Group now owns 1,029,572 shares of the fast-food giant's stock valued at $312,877,000 after buying an additional 51,039 shares in the last quarter. Finally, National Pension Service grew its holdings in McDonald's by 1.6% in the 4th quarter. National Pension Service now owns 1,557,348 shares of the fast-food giant's stock valued at $475,972,000 after buying an additional 24,333 shares in the last quarter. Institutional investors own 70.29% of the company's stock.
About McDonald's
(
Get Free Report)
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.
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