Q2 2024 EPS Estimates for McDonald’s Co. Cut by Zacks Research (NYSE:MCD)

McDonald’s Co. (NYSE:MCD) – Equities researchers at Zacks Research decreased their Q2 2024 earnings estimates for McDonald’s in a research report issued to clients and investors on Tuesday, April 16th. Zacks Research analyst H. Ray now forecasts that the fast-food giant will earn $3.17 per share for the quarter, down from their previous forecast of $3.22. The consensus estimate for McDonald’s’ current full-year earnings is $12.34 per share. Zacks Research also issued estimates for McDonald’s’ Q3 2024 earnings at $3.32 EPS, FY2024 earnings at $12.25 EPS, Q1 2025 earnings at $2.99 EPS, Q2 2025 earnings at $3.33 EPS, Q3 2025 earnings at $3.47 EPS, Q4 2025 earnings at $3.32 EPS and FY2025 earnings at $13.11 EPS.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Monday, February 5th. The fast-food giant reported $2.95 earnings per share for the quarter, topping the consensus estimate of $2.83 by $0.12. The firm had revenue of $6.41 billion during the quarter, compared to analyst estimates of $6.45 billion. McDonald’s had a negative return on equity of 171.96% and a net margin of 33.22%. The business’s quarterly revenue was up 8.1% on a year-over-year basis. During the same period last year, the company posted $2.59 EPS.

Other analysts also recently issued research reports about the stock. BTIG Research downgraded shares of McDonald’s from a “buy” rating to a “neutral” rating in a research report on Tuesday, February 6th. StockNews.com cut shares of McDonald’s from a “buy” rating to a “hold” rating in a report on Friday, February 9th. Robert W. Baird reissued an “outperform” rating and set a $315.00 price objective on shares of McDonald’s in a research report on Tuesday, February 6th. UBS Group decreased their target price on McDonald’s from $340.00 to $335.00 and set a “buy” rating for the company in a research report on Friday, April 5th. Finally, Argus reiterated a “hold” rating on shares of McDonald’s in a report on Monday, March 25th. Nine research analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $319.72.

McDonald’s Price Performance

NYSE MCD opened at $270.98 on Thursday. The stock has a market capitalization of $195.38 billion, a P/E ratio of 23.42, a P/E/G ratio of 2.88 and a beta of 0.71. The business has a 50 day simple moving average of $283.44 and a 200 day simple moving average of $280.62. McDonald’s has a one year low of $245.73 and a one year high of $302.39.

McDonald’s Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, March 15th. Shareholders of record on Friday, March 1st were given a dividend of $1.67 per share. The ex-dividend date was Thursday, February 29th. This represents a $6.68 annualized dividend and a dividend yield of 2.47%. McDonald’s’s dividend payout ratio is currently 57.74%.

Insiders Place Their Bets

In other news, insider Joseph M. Erlinger sold 1,099 shares of the company’s stock in a transaction that occurred on Friday, March 22nd. The stock was sold at an average price of $284.38, for a total value of $312,533.62. Following the completion of the transaction, the insider now directly owns 18,075 shares of the company’s stock, valued at $5,140,168.50. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 0.27% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

A number of hedge funds and other institutional investors have recently made changes to their positions in MCD. Dixon Mitchell Investment Counsel Inc. purchased a new stake in McDonald’s in the first quarter worth $28,000. Signature Resources Capital Management LLC purchased a new stake in McDonald’s in the 4th quarter worth about $31,000. Blue Bell Private Wealth Management LLC raised its stake in McDonald’s by 51.9% in the 3rd quarter. Blue Bell Private Wealth Management LLC now owns 123 shares of the fast-food giant’s stock valued at $32,000 after acquiring an additional 42 shares during the period. Spartan Planning & Wealth Management bought a new stake in McDonald’s in the 3rd quarter valued at about $33,000. Finally, Retirement Group LLC purchased a new stake in McDonald’s during the fourth quarter valued at about $37,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

About McDonald’s

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.