McDonald’s (NYSE:MCD) Price Target Lowered to $340.00 at UBS Group

McDonald’s (NYSE:MCD) had its price objective trimmed by UBS Group from $365.00 to $340.00 in a research report released on Monday morning, Marketbeat.com reports. The firm currently has a buy rating on the fast-food giant’s stock.

Other research analysts have also recently issued research reports about the company. Evercore set a $320.00 price objective on McDonald’s in a research note on Thursday. KeyCorp reissued an “overweight” rating on shares of McDonald’s in a research note on Wednesday, July 15th. Wells Fargo & Company reduced their price target on McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday, July 16th. BTIG Research lowered their price target on McDonald’s from $370.00 to $350.00 and set a “buy” rating for the company in a research report on Friday. Finally, Citigroup dropped their price target on shares of McDonald’s from $375.00 to $335.00 and set a “buy” rating on the stock in a research note on Wednesday, July 15th. Fifteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $333.32.

McDonald’s Stock Performance

MCD stock opened at $270.71 on Monday. The firm has a 50 day moving average price of $275.76 and a 200-day moving average price of $298.64. McDonald’s has a 52-week low of $260.96 and a 52-week high of $341.75. The firm has a market capitalization of $192.35 billion, a price-to-earnings ratio of 22.32, a PEG ratio of 2.84 and a beta of 0.41.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 EPS for the quarter, topping analysts’ consensus estimates of $2.74 by $0.09. The firm had revenue of $6.52 billion for the quarter, compared to analysts’ expectations of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The business’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.67 EPS. As a group, sell-side analysts forecast that McDonald’s will post 12.86 earnings per share for the current fiscal year.

McDonald’s Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Tuesday, September 1st will be given a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date is Tuesday, September 1st. McDonald’s’s dividend payout ratio is 61.34%.

Insider Transactions at McDonald’s

In related news, EVP Desiree Ralls-Morrison sold 2,763 shares of the business’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the business’s stock in a transaction that occurred on 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 sale, the insider owned 7,734 shares of the company’s stock, valued at $2,198,930.88. This trade represents a 40.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 8,348 shares of company stock worth $2,355,634. 0.26% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in MCD. Your Advocates Ltd. LLP purchased a new position in McDonald’s during the fourth quarter valued at $27,000. IFC & Insurance Marketing Inc. purchased a new stake in McDonald’s in the fourth quarter worth about $29,000. Abound Financial LLC purchased a new stake in McDonald’s in the fourth quarter worth about $30,000. Purpose Unlimited Inc. bought a new position in shares of McDonald’s in the fourth quarter worth about $31,000. Finally, DecisionPoint Financial LLC raised its stake in shares of McDonald’s by 1,616.7% in the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant’s stock worth $31,000 after buying an additional 97 shares during the period. 70.29% of the stock is currently owned by institutional investors.

McDonald’s News Summary

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

• Positive Sentiment: UBS maintained a Buy rating on McDonald’s while lowering its price target from $365 to $340. The revised target still implies approximately 25.6% upside from the reference price, signaling that the analyst sees meaningful long-term value despite near-term concerns. Benzinga report
• Positive Sentiment: A recent investment analysis characterized McDonald’s as attractively priced, potentially supporting investor interest in the stock following its decline from the 52-week high. Fast Food At Bargain Prices: McDonald’s
• Neutral Sentiment: The stock’s advance occurred alongside a broader market upswing, suggesting that part of the move reflected overall market momentum rather than a major new company announcement. McDonald’s Beats Stock Market Upswing
• Negative Sentiment: UBS expects McDonald’s second-quarter same-store sales to be “sluggish,” citing weaker consumer spending. Soft comparable sales could pressure near-term revenue growth and raise concerns about value-conscious customers. UBS expects sluggish Q2 same-store sales
• Negative Sentiment: UBS’s price-target reduction reflects a more cautious earnings outlook, even though the firm retained its Buy rating.
• Negative Sentiment: Recent consumer complaints alleging “shrinkflation” involving smaller drink portions could create reputational and value-perception risks, although the reports appear anecdotal rather than a confirmed financial impact. McDonald’s shrinkflation complaints

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.