McDonald’s (NYSE:MCD) Posts Quarterly Earnings Results, Beats Estimates By $0.05 EPS

McDonald’s (NYSE:MCD) announced its quarterly earnings data on Tuesday. The fast-food giant reported $3.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.18 by $0.05, Briefing.com reports. The company had revenue of $6.87 billion for the quarter, compared to the consensus estimate of $6.82 billion. McDonald’s had a negative return on equity of 178.68% and a net margin of 32.25%. The firm’s revenue was up 2.7% compared to the same quarter last year. During the same period in the previous year, the business earned $3.19 EPS.

McDonald’s Price Performance

MCD stock traded down $2.04 during midday trading on Wednesday, hitting $292.96. The stock had a trading volume of 2,476,364 shares, compared to its average volume of 3,512,966. The firm has a market cap of $210.15 billion, a price-to-earnings ratio of 25.63, a price-to-earnings-growth ratio of 4.13 and a beta of 0.73. The business has a 50-day moving average of $298.15 and a two-hundred day moving average of $275.35. McDonald’s has a 52-week low of $243.53 and a 52-week high of $317.90.

McDonald’s Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be paid a $1.77 dividend. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.42%. The ex-dividend date of this dividend is Monday, December 2nd. This is a boost from McDonald’s’s previous quarterly dividend of $1.67. McDonald’s’s dividend payout ratio (DPR) is presently 61.94%.

Insider Activity

In other news, insider Joseph M. Erlinger sold 1,098 shares of McDonald’s stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $288.70, for a total transaction of $316,992.60. Following the completion of the transaction, the insider now directly owns 12,583 shares in the company, valued at approximately $3,632,712.10. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, insider Joseph M. Erlinger sold 1,098 shares of the stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $288.70, for a total transaction of $316,992.60. Following the sale, the insider now owns 12,583 shares in the company, valued at $3,632,712.10. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Joseph M. Erlinger sold 1,099 shares of the business’s stock in a transaction dated Wednesday, October 23rd. The shares were sold at an average price of $292.38, for a total value of $321,325.62. Following the sale, the insider now directly owns 10,385 shares of the company’s stock, valued at $3,036,366.30. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 34,097 shares of company stock worth $10,256,818. Corporate insiders own 0.23% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on MCD shares. UBS Group increased their price target on shares of McDonald’s from $305.00 to $345.00 and gave the company a “buy” rating in a research report on Wednesday, October 9th. Argus raised shares of McDonald’s from a “hold” rating to a “buy” rating in a report on Tuesday, October 8th. TD Cowen reissued a “hold” rating and set a $300.00 price objective on shares of McDonald’s in a report on Tuesday. Robert W. Baird cut McDonald’s from an “outperform” rating to a “neutral” rating and cut their price objective for the stock from $320.00 to $290.00 in a report on Wednesday, October 23rd. Finally, Wedbush restated an “outperform” rating and issued a $295.00 target price on shares of McDonald’s in a research report on Wednesday, October 23rd. Thirteen investment analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $318.74.

McDonald’s Company Profile

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.