Zacks Investment Research upgraded shares of Mcdonald’s (NYSE:MCD) from a hold rating to a buy rating in a report published on Wednesday morning. The firm currently has $208.00 price objective on the fast-food giant’s stock.
According to Zacks, “McDonald’s impressive earnings surprise history, various sales and digital initiatives as well as positive comparable sales have helped the stock to outperform its industry in the past six months. Also, earning estimate for 2018 have increased over the past month. Furthermore, increased focus on delivery and accelerated deployment of Experience of the Future restaurants in the United States should boost its performance. These apart, the company’s efforts to drive growth in International Lead & High Growth Markets bode well. In fact, global comps at McDonald’s have been positive over the trailing 13 quarters. Yet, high labor costs and currency headwinds remain major concerns. Moreover, revenues have been under pressure for quite some time due to strategic refranchising initiatives. Even its heightened focus on refranchising should cut the capital requirements and facilitate EPS growth.”
Several other brokerages have also weighed in on MCD. Barclays set a $198.00 price objective on Mcdonald’s and gave the stock a buy rating in a research report on Monday, November 19th. Morgan Stanley upgraded Mcdonald’s from an equal weight rating to an overweight rating and increased their price objective for the stock from $173.00 to $210.00 in a research report on Thursday, November 29th. Piper Jaffray Companies increased their price objective on Mcdonald’s to $194.00 and gave the stock an overweight rating in a research report on Wednesday, November 28th. Jefferies Financial Group reiterated a buy rating and issued a $200.00 price objective on shares of Mcdonald’s in a research report on Tuesday. Finally, Cowen increased their price objective on Mcdonald’s from $190.00 to $205.00 and gave the stock an outperform rating in a research report on Friday, November 9th. Six investment analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the company’s stock. The company presently has an average rating of Buy and an average price target of $191.69.
Mcdonald’s (NYSE:MCD) last issued its quarterly earnings data on Tuesday, October 23rd. The fast-food giant reported $2.10 earnings per share for the quarter, topping the consensus estimate of $1.99 by $0.11. The company had revenue of $5.37 billion during the quarter, compared to analyst estimates of $5.28 billion. Mcdonald’s had a negative return on equity of 116.43% and a net margin of 24.56%. The firm’s revenue for the quarter was down 6.7% compared to the same quarter last year. During the same period in the prior year, the business posted $1.76 earnings per share. Equities research analysts forecast that Mcdonald’s will post 7.76 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, December 17th. Stockholders of record on Monday, December 3rd will be given a dividend of $1.16 per share. This is a positive change from Mcdonald’s’s previous quarterly dividend of $1.01. This represents a $4.64 annualized dividend and a dividend yield of 2.53%. The ex-dividend date of this dividend is Friday, November 30th. Mcdonald’s’s dividend payout ratio (DPR) is currently 69.67%.
In other news, insider Ian Frederick Borden sold 4,782 shares of the firm’s stock in a transaction on Thursday, October 25th. The stock was sold at an average price of $177.68, for a total transaction of $849,665.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Francesca A. Debiase sold 15,136 shares of the stock in a transaction on Wednesday, October 24th. The shares were sold at an average price of $176.17, for a total value of $2,666,509.12. Following the completion of the sale, the executive vice president now owns 17,306 shares in the company, valued at $3,048,798.02. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 221,041 shares of company stock valued at $38,839,407. Company insiders own 0.22% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Burleson & Company LLC raised its stake in shares of Mcdonald’s by 12.4% in the third quarter. Burleson & Company LLC now owns 9,853 shares of the fast-food giant’s stock valued at $1,840,000 after acquiring an additional 1,087 shares in the last quarter. Great Lakes Advisors LLC raised its stake in shares of Mcdonald’s by 13.6% in the third quarter. Great Lakes Advisors LLC now owns 58,251 shares of the fast-food giant’s stock valued at $9,745,000 after acquiring an additional 6,957 shares in the last quarter. Belpointe Asset Management LLC raised its stake in shares of Mcdonald’s by 67.3% in the third quarter. Belpointe Asset Management LLC now owns 5,254 shares of the fast-food giant’s stock valued at $879,000 after acquiring an additional 2,113 shares in the last quarter. Legal & General Group Plc raised its stake in shares of Mcdonald’s by 1.0% in the third quarter. Legal & General Group Plc now owns 3,763,644 shares of the fast-food giant’s stock valued at $629,631,000 after acquiring an additional 37,786 shares in the last quarter. Finally, Waldron Private Wealth LLC acquired a new stake in shares of Mcdonald’s in the third quarter valued at $239,000. Institutional investors and hedge funds own 67.22% of the company’s stock.
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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