Mcdonald’s (MCD) Hits New 12-Month High on Analyst Upgrade

Mcdonald’s Corp (NYSE:MCD) hit a new 52-week high on Wednesday after Citigroup raised their price target on the stock from $171.00 to $189.00. Citigroup currently has a neutral rating on the stock. Mcdonald’s traded as high as $178.96 and last traded at $176.96, with a volume of 2263063 shares changing hands. The stock had previously closed at $178.49.

A number of other equities research analysts have also weighed in on MCD. Zacks Investment Research raised Mcdonald’s from a “hold” rating to a “buy” rating and set a $199.00 target price for the company in a research report on Friday, October 26th. Robert W. Baird reaffirmed a “buy” rating and set a $200.00 target price on shares of Mcdonald’s in a research report on Wednesday, October 24th. JPMorgan Chase & Co. set a $180.00 target price on Mcdonald’s and gave the company a “buy” rating in a research report on Wednesday, October 24th. Jefferies Financial Group lifted their target price on Mcdonald’s from $190.00 to $200.00 and gave the company a “buy” rating in a research report on Wednesday, October 24th. Finally, Telsey Advisory Group lifted their target price on Mcdonald’s from $175.00 to $195.00 and gave the company an “outperform” rating in a research report on Wednesday, October 24th. Seven equities research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $188.93.

In related news, EVP Francesca A. Debiase sold 15,136 shares of the business’s stock in a transaction on Wednesday, October 24th. The stock was sold at an average price of $176.17, for a total transaction of $2,666,509.12. Following the transaction, the executive vice president now directly owns 17,306 shares in the company, valued at approximately $3,048,798.02. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Stephen Easterbrook sold 201,123 shares of the business’s stock in a transaction on Wednesday, October 24th. The stock was sold at an average price of $175.63, for a total value of $35,323,232.49. Following the transaction, the chief executive officer now owns 48,925 shares in the company, valued at $8,592,697.75. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 221,041 shares of company stock worth $38,839,407. 0.22% of the stock is owned by company insiders.

A number of hedge funds have recently made changes to their positions in MCD. Rainier Group Investment Advisory LLC purchased a new stake in Mcdonald’s during the 1st quarter valued at about $102,000. CSat Investment Advisory L.P. purchased a new stake in Mcdonald’s during the 2nd quarter valued at about $104,000. CX Institutional purchased a new stake in Mcdonald’s during the 2nd quarter valued at about $109,000. Quad Cities Investment Group LLC purchased a new stake in Mcdonald’s during the 2nd quarter valued at about $110,000. Finally, NuWave Investment Management LLC grew its stake in Mcdonald’s by 2,485.2% during the 3rd quarter. NuWave Investment Management LLC now owns 698 shares of the fast-food giant’s stock valued at $117,000 after purchasing an additional 671 shares during the last quarter. Hedge funds and other institutional investors own 66.92% of the company’s stock.

The company has a market cap of $134.48 billion, a price-to-earnings ratio of 26.56, a PEG ratio of 2.54 and a beta of 0.66.

Mcdonald’s (NYSE:MCD) last posted its quarterly earnings results on Tuesday, October 23rd. The fast-food giant reported $2.10 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.99 by $0.11. The business had revenue of $5.37 billion for the quarter, compared to the consensus estimate of $5.28 billion. Mcdonald’s had a negative return on equity of 130.19% and a net margin of 24.56%. The company’s quarterly revenue was down 6.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.76 EPS. As a group, research analysts expect that Mcdonald’s Corp will post 7.75 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Monday, December 17th. Shareholders of record on Monday, December 3rd will be paid a dividend of $1.16 per share. This represents a $4.64 annualized dividend and a yield of 2.62%. The ex-dividend date of this dividend is Friday, November 30th. This is an increase from Mcdonald’s’s previous quarterly dividend of $1.01. Mcdonald’s’s payout ratio is presently 60.66%.

Mcdonald’s Company Profile (NYSE:MCD)

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2017, the company operated 37,241 restaurants, including 34,108 franchised restaurants comprising 21,366 franchised to conventional franchisees, 6,945 licensed to developmental licensees, and 5,797 licensed to foreign affiliates; and 3,133 company-operated restaurants.

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