Guggenheim Cuts McDonald’s (NYSE:MCD) Price Target to $320.00

McDonald’s (NYSE:MCD) had its target price lowered by Guggenheim from $325.00 to $320.00 in a research report sent to investors on Friday morning, MarketBeat Ratings reports. Guggenheim currently has a neutral rating on the fast-food giant’s stock.

A number of other brokerages also recently issued reports on MCD. UBS Group raised their price target on shares of McDonald’s from $350.00 to $365.00 and gave the stock a “buy” rating in a report on Thursday. Piper Sandler upped their target price on shares of McDonald’s from $323.00 to $325.00 and gave the company a “neutral” rating in a research report on Thursday. Weiss Ratings reissued a “buy (b-)” rating on shares of McDonald’s in a research report on Wednesday, January 28th. TD Cowen restated a “hold” rating and set a $320.00 price target on shares of McDonald’s in a research report on Thursday. Finally, BMO Capital Markets reaffirmed an “outperform” rating on shares of McDonald’s in a research note on Thursday, November 6th. Fifteen research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $337.04.

McDonald’s Stock Down 1.4%

MCD stock opened at $327.58 on Friday. McDonald’s has a 52 week low of $283.47 and a 52 week high of $335.67. The firm has a 50-day simple moving average of $313.02 and a 200-day simple moving average of $308.34. The stock has a market capitalization of $233.29 billion, a P/E ratio of 27.41, a P/E/G ratio of 3.32 and a beta of 0.52.

McDonald’s (NYSE:MCD) last released its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share for the quarter, beating the consensus estimate of $3.05 by $0.07. The business had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.81 billion. McDonald’s had a negative return on equity of 343.90% and a net margin of 31.85%.The business’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter last year, the business posted $2.83 earnings per share. On average, analysts expect that McDonald’s will post 12.25 earnings per share for the current year.

McDonald’s Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 17th. Shareholders of record on Tuesday, March 3rd will be issued a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Tuesday, March 3rd. McDonald’s’s payout ratio is 62.26%.

Insiders Place Their Bets

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,486 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $320.00, for a total value of $795,520.00. Following the transaction, the executive vice president directly owned 6,268 shares in the company, valued at $2,005,760. This represents a 28.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 2,626 shares of the stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $325.25, for a total transaction of $854,106.50. Following the completion of the transaction, the insider directly owned 5,398 shares in the company, valued at $1,755,699.50. This trade represents a 32.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 31,439 shares of company stock worth $9,772,464 over the last 90 days. Insiders own 0.25% of the company’s stock.

Institutional Trading of McDonald’s

A number of large investors have recently bought and sold shares of MCD. Vanguard Group Inc. raised its stake in McDonald’s by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant’s stock valued at $22,112,675,000 after acquiring an additional 703,458 shares during the last quarter. State Street Corp increased its holdings in shares of McDonald’s by 2.7% in the fourth quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant’s stock valued at $10,997,789,000 after purchasing an additional 959,140 shares during the period. Geode Capital Management LLC increased its holdings in shares of McDonald’s by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant’s stock valued at $5,195,965,000 after purchasing an additional 76,090 shares during the period. Norges Bank purchased a new stake in shares of McDonald’s during the second quarter worth approximately $2,780,712,000. Finally, Laurel Wealth Advisors LLC lifted its holdings in shares of McDonald’s by 29,382.3% during the second quarter. Laurel Wealth Advisors LLC now owns 5,737,548 shares of the fast-food giant’s stock worth $1,676,339,000 after purchasing an additional 5,718,087 shares during the period. Institutional investors and hedge funds own 70.29% of the company’s stock.

McDonald’s News Roundup

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

• Positive Sentiment: Q4 beat and momentum — McDonald’s reported stronger-than-expected Q4 results (revenue ~ $7.0B, EPS beat, systemwide comps up ~5.7% with U.S. comps ~6.8%) and cited loyalty growth that helped drive sales and margins; this is the primary bullish catalyst supporting the stock. Q4 Earnings Beat
• Positive Sentiment: Analyst upgrades and higher targets — Several firms raised ratings/targets (Argus upgraded to Buy with a $380 target; Truist/BTIG raised targets toward ~$370), which can support further upside as sentiment shifts. Analyst Upgrades
• Positive Sentiment: Buyback/dividend tailwind — Coverage notes that strong cash flow from Q4 and a healthy dividend yield support continued buybacks and payouts, a structural catalyst for EPS per-share gains over time. Buybacks & Dividends
• Neutral Sentiment: Promotions/brand buzz — Seasonal items and PR stunts (Shamrock Shake, McNugget kits) are driving traffic and media attention; helpful for short-term comps but likely temporary. Promotions
• Negative Sentiment: Insider selling — A disclosed sale by a senior U.S. executive (Form 4) may have added to near-term selling pressure as some investors lock in gains after the earnings pop. Insider Sale
• Negative Sentiment: Franchisee execution risk — Reports of tension between corporate pricing/value pushes and some franchisees could complicate uniform execution and margins across markets, a potential headwind if disputes persist. Franchisee Tensions

About McDonald’s

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.