TD Cowen Reaffirms “Buy” Rating for McDonald’s (NYSE:MCD)

TD Cowen restated their buy rating on shares of McDonald’s (NYSE:MCD) in a research report released on Thursday, Benzinga reports. The brokerage currently has a $305.00 target price on the fast-food giant’s stock.

A number of other analysts also recently commented on MCD. The Goldman Sachs Group started coverage on McDonald’s in a research report on Thursday. They set a neutral rating and a $288.00 target price on the stock. JPMorgan Chase & Co. upped their price objective on McDonald’s from $290.00 to $300.00 and gave the company an overweight rating in a research report on Monday, June 3rd. Stifel Nicolaus reduced their price objective on McDonald’s from $315.00 to $300.00 and set a hold rating on the stock in a research report on Thursday, April 11th. Robert W. Baird reduced their price objective on McDonald’s from $305.00 to $300.00 and set an outperform rating on the stock in a research report on Wednesday, May 1st. Finally, Guggenheim reduced their price objective on McDonald’s from $325.00 to $315.00 and set a buy rating on the stock in a research report on Thursday, May 2nd. Ten equities research analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. According to MarketBeat, the stock currently has an average rating of Moderate Buy and a consensus target price of $315.14.

McDonald’s Price Performance

Shares of MCD stock opened at $253.58 on Thursday. The business’s fifty day moving average price is $265.90 and its 200 day moving average price is $281.32. McDonald’s has a 1-year low of $245.73 and a 1-year high of $302.39. The firm has a market capitalization of $182.75 billion, a PE ratio of 21.53, a P/E/G ratio of 2.86 and a beta of 0.71.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, April 30th. The fast-food giant reported $2.70 earnings per share for the quarter, missing analysts’ consensus estimates of $2.71 by ($0.01). McDonald’s had a negative return on equity of 180.74% and a net margin of 33.36%. The business had revenue of $6.17 billion for the quarter, compared to analyst estimates of $6.16 billion. During the same period in the prior year, the company earned $2.63 EPS. The company’s revenue was up 4.6% on a year-over-year basis. Equities research analysts expect that McDonald’s will post 12.17 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, June 17th. Stockholders of record on Monday, June 3rd will be paid a $1.67 dividend. The ex-dividend date is Monday, June 3rd. This represents a $6.68 dividend on an annualized basis and a dividend yield of 2.63%. McDonald’s’s dividend payout ratio (DPR) is currently 56.71%.

Insider Activity

In related news, insider Joseph M. Erlinger sold 1,099 shares of the stock in a transaction dated Thursday, May 23rd. The stock was sold at an average price of $265.13, for a total value of $291,377.87. Following the completion of the transaction, the insider now owns 15,878 shares of the company’s stock, valued at $4,209,734.14. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other McDonald’s news, insider Joseph M. Erlinger sold 1,098 shares of the stock in a transaction that occurred on Tuesday, April 23rd. The stock was sold at an average price of $276.64, for a total transaction of $303,750.72. Following the transaction, the insider now owns 16,977 shares of the company’s stock, valued at approximately $4,696,517.28. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Joseph M. Erlinger sold 1,099 shares of the stock in a transaction that occurred on Thursday, May 23rd. The stock was sold at an average price of $265.13, for a total value of $291,377.87. Following the transaction, the insider now directly owns 15,878 shares in the company, valued at approximately $4,209,734.14. The disclosure for this sale can be found here. Over the last quarter, insiders sold 4,096 shares of company stock worth $1,127,678. 0.23% of the stock is currently owned by corporate insiders.

Institutional Trading of McDonald’s

Several hedge funds have recently made changes to their positions in MCD. Mizuho Markets Americas LLC bought a new stake in shares of McDonald’s in the 3rd quarter worth approximately $2,887,000. Kestra Advisory Services LLC increased its position in McDonald’s by 6.1% in the 3rd quarter. Kestra Advisory Services LLC now owns 115,398 shares of the fast-food giant’s stock valued at $30,400,000 after acquiring an additional 6,682 shares during the period. Checchi Capital Advisers LLC increased its position in McDonald’s by 6.9% in the 3rd quarter. Checchi Capital Advisers LLC now owns 10,374 shares of the fast-food giant’s stock valued at $2,733,000 after acquiring an additional 669 shares during the period. Financial Engines Advisors L.L.C. increased its position in McDonald’s by 47.2% in the 3rd quarter. Financial Engines Advisors L.L.C. now owns 1,191 shares of the fast-food giant’s stock valued at $314,000 after acquiring an additional 382 shares during the period. Finally, Capital Square LLC increased its position in McDonald’s by 12.3% in the 3rd quarter. Capital Square LLC now owns 1,190 shares of the fast-food giant’s stock valued at $305,000 after acquiring an additional 130 shares during the period. Institutional investors own 70.29% of the company’s stock.

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.