McDonald’s (NYSE:MCD) Lowered to Hold Rating by Erste Group Bank

Erste Group Bank cut shares of McDonald’s (NYSE:MCD) from a buy rating to a hold rating in a research note issued to investors on Monday, MarketBeat.com reports.

Other equities analysts have also recently issued reports about the stock. TD Cowen restated a “hold” rating and set a $320.00 price target on shares of McDonald’s in a report on Thursday, February 12th. Barclays increased their price objective on McDonald’s from $372.00 to $380.00 and gave the stock an “overweight” rating in a report on Thursday, February 12th. Weiss Ratings restated a “buy (b-)” rating on shares of McDonald’s in a research note on Wednesday, January 28th. Wells Fargo & Company upped their target price on McDonald’s from $345.00 to $355.00 and gave the stock an “overweight” rating in a research report on Thursday, February 12th. Finally, Rothschild & Co Redburn raised McDonald’s from a “sell” rating to a “neutral” rating and raised their price target for the stock from $260.00 to $306.00 in a research note on Thursday. Sixteen research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $340.93.

McDonald’s Stock Performance

MCD stock opened at $290.45 on Monday. The stock has a market cap of $206.46 billion, a P/E ratio of 24.31, a P/E/G ratio of 2.71 and a beta of 0.53. The firm has a 50 day simple moving average of $316.41 and a 200 day simple moving average of $312.04. McDonald’s has a 52 week low of $283.47 and a 52 week high of $341.75.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, beating analysts’ consensus estimates of $3.05 by $0.07. McDonald’s had a net margin of 31.85% and a negative return on equity of 343.90%. The firm had revenue of $7.01 billion for the quarter, compared to the consensus estimate of $6.81 billion. During the same period in the previous year, the firm posted $2.83 earnings per share. The firm’s revenue was up 9.7% on a year-over-year basis. Sell-side analysts predict that McDonald’s will post 13.21 EPS for the current year.

McDonald’s Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 17th. Investors of record on Tuesday, March 3rd were paid a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Tuesday, March 3rd. McDonald’s’s dividend payout ratio (DPR) is presently 62.26%.

Insider Buying and Selling

In related news, EVP Jonathan Banner sold 6,201 shares of the firm’s stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 2,291 shares of the company’s stock, valued at approximately $763,567.39. This trade represents a 73.02% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CMO Edith Morgan Flatley sold 4,692 shares of the firm’s stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $331.00, for a total value of $1,553,052.00. Following the completion of the transaction, the chief marketing officer directly owned 6,200 shares in the company, valued at $2,052,200. The trade was a 43.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 71,990 shares of company stock valued at $23,824,113 over the last 90 days. 0.26% of the stock is currently owned by insiders.

Institutional Investors Weigh In On McDonald’s

A number of hedge funds have recently bought and sold shares of MCD. Hamilton Point Investment Advisors LLC increased its holdings in shares of McDonald’s by 1.8% during the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant’s stock worth $535,000 after buying an additional 31 shares in the last quarter. Encompass More Asset Management increased its holdings in shares of McDonald’s by 1.5% during the fourth quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock worth $648,000 after buying an additional 32 shares in the last quarter. Richmond Investment Services LLC increased its holdings in shares of McDonald’s by 1.4% during the fourth quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock worth $696,000 after buying an additional 32 shares in the last quarter. Papamarkou Wellner Asset Management inc. increased its holdings in shares of McDonald’s by 0.4% during the fourth quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant’s stock worth $2,692,000 after buying an additional 32 shares in the last quarter. Finally, WD Rutherford LLC increased its holdings in shares of McDonald’s by 1.0% during the third quarter. WD Rutherford LLC now owns 3,261 shares of the fast-food giant’s stock worth $991,000 after buying an additional 33 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: Several analysts have adjusted targets in the mid‑$300s (some raised), reflecting continued confidence in McDonald’s long‑term growth and prompting debate over how much upside remains. This support from parts of the Street can buoy sentiment. How The McDonald’s (MCD) Investment Story Is Shifting As Analysts Rework Growth And Valuation
• Positive Sentiment: New product and marketing initiatives — including a major Stranger Things Happy Meal collaboration — provide short‑term traffic drivers and brand visibility that can help sales while cross‑promotions roll out. McDonald’s x Stranger Things Happy Meal
• Positive Sentiment: Product expansion efforts, like a new drinks menu aimed at capturing more beverage spend, could incrementally lift check sizes if adoption scales. Investors view beverage gains as a meaningful long‑term lever. McDonald’s takes aim at Starbucks with new drinks menu
• Positive Sentiment: Institutional buying was reported in a recent 13F (Advisors Capital Management increased holdings), a sign that some money managers are adding to positions. Holdings Increased by Advisors Capital Management
• Neutral Sentiment: Analysts are also reworking fair value and valuation assumptions (a very small fair‑value tweak was reported), highlighting that expectations are being recalibrated rather than radically shifted. This creates mixed signals for near‑term price moves. How The McDonald’s (MCD) Investment Story Is Shifting As Analysts Rework Growth And Valuation
• Neutral Sentiment: Various viral/consumer stories (CEO explaining a viral tiny‑burger bite, menu articles) are generating media buzz but are unlikely to move fundamentals materially. CEO explains viral tiny burger bite
• Negative Sentiment: Erste Group downgraded MCD from “buy” to “hold,” a direct negative catalyst that can pressure sentiment and prompt short‑term selling. Finviz (Erste Group downgrade)
• Negative Sentiment: Analysts and outlets note a tougher operating backdrop—slowing customer traffic, softening sales and rising food costs—which raises near‑term margin and growth concerns for the restaurant sector and weighs on the stock. McDonald’s unveils new Happy Meal; operating challenges noted

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.