McDonald’s (NYSE:MCD) Upgraded at Argus

Argus upgraded shares of McDonald’s (NYSE:MCD) from a hold rating to a buy rating in a report published on Friday, Marketbeat Ratings reports. Argus currently has $380.00 price target on the fast-food giant’s stock.

Several other research analysts also recently commented on the stock. Piper Sandler boosted their price objective on shares of McDonald’s from $323.00 to $325.00 and gave the company a “neutral” rating in a research report on Thursday. TD Cowen reiterated a “hold” rating and issued a $320.00 price target on shares of McDonald’s in a research note on Thursday. BMO Capital Markets restated an “outperform” rating on shares of McDonald’s in a research report on Thursday, November 6th. Morgan Stanley set a $335.00 price objective on McDonald’s in a research note on Friday, October 17th. Finally, BTIG Research boosted their target price on McDonald’s from $360.00 to $370.00 and gave the stock a “buy” rating in a research note on Thursday. Fifteen analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, McDonald’s has an average rating of “Hold” and an average price target of $337.04.

McDonald’s Stock Down 1.4%

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

McDonald’s (NYSE:MCD) last issued its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 EPS for the quarter, beating the consensus estimate 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 company had revenue of $7.01 billion during the quarter, compared to analysts’ expectations of $6.81 billion. During the same period in the previous year, the company earned $2.83 EPS. The business’s revenue for the quarter was up 9.7% compared to the same quarter last year. Sell-side analysts anticipate that McDonald’s will post 12.25 EPS for the current fiscal year.

McDonald’s Dividend Announcement

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

Insider Buying and Selling at McDonald’s

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

Institutional Investors Weigh In On McDonald’s

Several institutional investors and hedge funds have recently made changes to their positions in MCD. Evergreen Private Wealth LLC increased its position in McDonald’s by 162.5% in the 3rd quarter. Evergreen Private Wealth LLC now owns 84 shares of the fast-food giant’s stock valued at $26,000 after buying an additional 52 shares in the last quarter. Decker Retirement Planning Inc. grew its stake in McDonald’s by 142.9% in the second quarter. Decker Retirement Planning Inc. now owns 85 shares of the fast-food giant’s stock valued at $25,000 after acquiring an additional 50 shares during the period. Legacy Investment Solutions LLC bought a new stake in shares of McDonald’s during the second quarter valued at approximately $25,000. Your Advocates Ltd. LLP bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $27,000. Finally, Park Place Capital Corp raised its position in shares of McDonald’s by 95.7% during the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock worth $28,000 after purchasing an additional 45 shares during the period. Institutional investors and hedge funds own 70.29% of the company’s stock.

Key McDonald’s News

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.