Citigroup Lowers McDonald’s (NYSE:MCD) Price Target to $335.00

McDonald’s (NYSE:MCD) had its price objective lowered by stock analysts at Citigroup from $375.00 to $335.00 in a report released on Wednesday,Benzinga reports. The firm presently has a “buy” rating on the fast-food giant’s stock. Citigroup’s price objective would suggest a potential upside of 22.54% from the company’s previous close.

A number of other research firms have also recently weighed in on MCD. Cfra upgraded McDonald’s to a “buy” rating in a research note on Friday, May 8th. Weiss Ratings cut shares of McDonald’s from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Erste Group Bank downgraded shares of McDonald’s from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Sanford C. Bernstein reissued a “market perform” rating on shares of McDonald’s in a research report on Monday, June 22nd. Finally, TD Cowen restated a “hold” rating on shares of McDonald’s in a research note on Friday, June 12th. Fifteen equities research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. According to data from MarketBeat.com, McDonald’s presently has an average rating of “Moderate Buy” and an average price target of $335.58.

McDonald’s Stock Performance

Shares of NYSE:MCD opened at $273.38 on Wednesday. McDonald’s has a 52-week low of $264.09 and a 52-week high of $341.75. The company has a market capitalization of $194.24 billion, a P/E ratio of 22.54, a price-to-earnings-growth ratio of 2.75 and a beta of 0.41. The company has a 50-day simple moving average of $277.23 and a 200 day simple moving average of $300.56.

McDonald’s (NYSE:MCD) last released its quarterly earnings data 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. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The firm had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the prior year, the company earned $2.67 earnings per share. The business’s revenue for the quarter was up 9.4% compared to the same quarter last year. As a group, equities analysts forecast that McDonald’s will post 12.9 earnings per share for the current year.

Insider Transactions at McDonald’s

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president directly owned 6,268 shares of the company’s stock, valued at $1,744,760.48. This trade represents a 30.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the transaction, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 8,681 shares of company stock valued at $2,456,440. 0.26% of the stock is owned by insiders.

Institutional Trading of McDonald’s

A number of institutional investors and hedge funds have recently made changes to their positions in MCD. Hamilton Point Investment Advisors LLC lifted its stake in 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 purchasing an additional 31 shares during the last quarter. Encompass More Asset Management increased its stake in shares of McDonald’s by 1.5% in the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant’s stock valued at $648,000 after purchasing an additional 32 shares during the last quarter. Richmond Investment Services LLC increased its stake in shares of McDonald’s by 1.4% in the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant’s stock valued at $696,000 after purchasing an additional 32 shares during the last quarter. Papamarkou Wellner Asset Management inc. raised its holdings in shares of McDonald’s by 0.4% during the 4th 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, Physician Wealth Advisors Inc. raised its holdings in shares of McDonald’s by 1.6% during the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant’s stock worth $642,000 after buying an additional 33 shares in the last quarter. Institutional investors own 70.29% of the company’s stock.

Key Headlines Impacting McDonald’s

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

• Positive Sentiment: McDonald’s is rolling out new limited-time items, including Caesar sauce, new chicken offerings, and other menu tests, which could help boost customer interest and restaurant traffic. McDonald’s builds its new menu around a flavor it never sold
• Positive Sentiment: Analysts continue to view McDonald’s as a strong defensive restaurant name, with commentary pointing to customer engagement, value messaging, and marketing campaigns as potential supports for sales. Can McDonald’s Global Marketing Strategy Drive Customer Traffic?
• Positive Sentiment: One Wall Street note kept a Buy rating on MCD even while trimming its price target, suggesting analysts still see upside from current levels. Citigroup price target change
• Neutral Sentiment: McDonald’s is drawing extra attention from investors and traders, with recent coverage framing the stock as a valuation and defensive-name debate rather than a clear new catalyst. MCD at $268, Starbucks at $106: Buy, Sell or Hold?
• Negative Sentiment: Several articles focus on ongoing “McProblem” issues, including concerns that McDonald’s traffic and business momentum have not improved enough, which may be reinforcing investor worries about the core growth outlook. McDonald’s has a McProblem that’s not getting better
• Negative Sentiment: Another report says McDonald’s stock is near its lowest levels in almost two years, highlighting pressure from weaker sentiment and a more cautious view of the company’s growth. Why McDonald’s stock is at nearly 2-year lows

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.