McDonald’s (NYSE:MCD) Downgraded by Guggenheim

Guggenheim cut shares of McDonald’s (NYSE:MCD) from a buy rating to a neutral rating in a research report released on Wednesday morning, MarketBeat Ratings reports. The firm currently has $285.00 target price on the fast-food giant’s stock, down from their previous target price of $290.00.

Several other research firms have also recently issued reports on MCD. JPMorgan Chase & Co. boosted their target price on shares of McDonald’s from $270.00 to $290.00 and gave the company an “overweight” rating in a research note on Monday, September 16th. Barclays upped their price objective on shares of McDonald’s from $300.00 to $325.00 and gave the stock an “overweight” rating in a research report on Tuesday. Citigroup increased their target price on shares of McDonald’s from $301.00 to $317.00 and gave the stock a “neutral” rating in a research note on Wednesday, October 2nd. Wedbush reaffirmed an “outperform” rating and issued a $295.00 price target on shares of McDonald’s in a report on Monday, July 29th. Finally, Wells Fargo & Company raised their price objective on McDonald’s from $285.00 to $350.00 and gave the company an “overweight” rating in a report on Monday, October 21st. Thirteen analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $318.22.

McDonald’s Stock Performance

NYSE:MCD opened at $292.50 on Wednesday. The firm’s fifty day moving average is $297.78 and its two-hundred day moving average is $274.88. The firm has a market cap of $210.80 billion, a price-to-earnings ratio of 24.83, a PEG ratio of 4.13 and a beta of 0.73. McDonald’s has a one year low of $243.53 and a one year high of $317.90.

McDonald’s (NYSE:MCD) last issued its earnings results on Monday, July 29th. The fast-food giant reported $2.97 EPS for the quarter, missing analysts’ consensus estimates of $3.07 by ($0.10). The company had revenue of $6.49 billion during the quarter, compared to analysts’ expectations of $6.62 billion. McDonald’s had a negative return on equity of 178.68% and a net margin of 32.25%. The firm’s quarterly revenue was down .1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.17 EPS. As a group, equities research analysts predict that McDonald’s will post 11.73 earnings per share for the current fiscal year.

McDonald’s Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Shareholders of record on Monday, December 2nd will be paid a dividend of $1.77 per share. The ex-dividend date is Monday, December 2nd. This is an increase from McDonald’s’s previous quarterly dividend of $1.67. This represents a $7.08 dividend on an annualized basis and a yield of 2.42%. McDonald’s’s payout ratio is 60.10%.

Insider Activity

In other news, EVP Marion K. Gross sold 1,498 shares of McDonald’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $286.36, for a total transaction of $428,967.28. Following the sale, the executive vice president now owns 1,560 shares of the company’s stock, valued at approximately $446,721.60. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In related news, insider Joseph M. Erlinger sold 1,098 shares of the firm’s stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $288.70, for a total transaction of $316,992.60. Following the completion of the sale, the insider now directly owns 12,583 shares of the company’s stock, valued at approximately $3,632,712.10. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Marion K. Gross sold 1,498 shares of the company’s stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $286.36, for a total transaction of $428,967.28. Following the completion of the transaction, the executive vice president now directly owns 1,560 shares in the company, valued at $446,721.60. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 34,097 shares of company stock valued at $10,256,818 in the last 90 days. Company insiders own 0.23% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

Several large investors have recently made changes to their positions in MCD. Dixon Mitchell Investment Counsel Inc. purchased a new stake in McDonald’s in the first quarter valued at approximately $28,000. Kings Path Partners LLC purchased a new stake in shares of McDonald’s in the 2nd quarter valued at $38,000. Keener Financial Planning LLC raised its holdings in shares of McDonald’s by 32.3% in the 1st quarter. Keener Financial Planning LLC now owns 176 shares of the fast-food giant’s stock valued at $50,000 after buying an additional 43 shares during the period. Opal Wealth Advisors LLC purchased a new position in McDonald’s during the 2nd quarter valued at about $59,000. Finally, Bbjs Financial Advisors LLC acquired a new position in McDonald’s in the 2nd quarter valued at about $65,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

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.