McDonald’s (MCD) Rating Reiterated by Royal Bank of Canada

McDonald’s (NYSE:MCD)‘s stock had its “buy” rating reiterated by analysts at Royal Bank of Canada in a research report issued to clients and investors on Friday. They presently have a $175.00 target price on the fast-food giant’s stock. Royal Bank of Canada’s price target would indicate a potential upside of 7.22% from the company’s previous close.

Several other equities research analysts also recently commented on MCD. Bank of America set a $200.00 target price on McDonald’s and gave the company a “buy” rating in a report on Monday, January 29th. Goldman Sachs Group set a $200.00 target price on McDonald’s and gave the company a “buy” rating in a report on Tuesday, January 30th. Stephens reiterated an “overweight” rating and set a $185.00 target price (up from $175.00) on shares of McDonald’s in a report on Tuesday, January 30th. Nomura raised their target price on McDonald’s from $198.00 to $203.00 and gave the company a “buy” rating in a report on Tuesday, January 30th. Finally, Credit Suisse Group set a $191.00 target price on McDonald’s and gave the company a “buy” rating in a report on Tuesday, January 30th. Nine equities research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $184.03.

NYSE MCD opened at $163.21 on Friday. The stock has a market capitalization of $127.50 billion, a PE ratio of 24.51, a PEG ratio of 2.39 and a beta of 0.63. The company has a current ratio of 1.74, a quick ratio of 1.72 and a debt-to-equity ratio of -6.54. McDonald’s has a 1-year low of $146.84 and a 1-year high of $178.70.

McDonald’s (NYSE:MCD) last announced its earnings results on Monday, April 30th. The fast-food giant reported $1.79 EPS for the quarter, beating the consensus estimate of $1.67 by $0.12. The business had revenue of $5.14 billion for the quarter, compared to the consensus estimate of $4.97 billion. McDonald’s had a negative return on equity of 167.80% and a net margin of 24.02%. The company’s revenue was down 9.5% on a year-over-year basis. During the same period last year, the business posted $1.47 EPS. sell-side analysts expect that McDonald’s will post 7.66 EPS for the current fiscal year.

In other news, EVP Kevin M. Ozan sold 18,636 shares of the business’s stock in a transaction that occurred on Tuesday, May 1st. The stock was sold at an average price of $165.69, for a total value of $3,087,798.84. Following the completion of the sale, the executive vice president now directly owns 29,800 shares in the company, valued at approximately $4,937,562. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Douglas M. Goare sold 13,255 shares of the business’s stock in a transaction that occurred on Tuesday, May 1st. The shares were sold at an average price of $165.40, for a total value of $2,192,377.00. The disclosure for this sale can be found here. 0.22% of the stock is currently owned by insiders.

A number of large investors have recently added to or reduced their stakes in MCD. Jennison Associates LLC boosted its position in McDonald’s by 26.5% during the 4th quarter. Jennison Associates LLC now owns 8,820,228 shares of the fast-food giant’s stock valued at $1,518,138,000 after purchasing an additional 1,848,111 shares during the period. Janus Henderson Group PLC boosted its position in McDonald’s by 31.2% during the 3rd quarter. Janus Henderson Group PLC now owns 5,802,160 shares of the fast-food giant’s stock valued at $909,044,000 after purchasing an additional 1,379,737 shares during the period. Amundi Pioneer Asset Management Inc. boosted its position in McDonald’s by 103.8% during the 1st quarter. Amundi Pioneer Asset Management Inc. now owns 2,043,158 shares of the fast-food giant’s stock valued at $319,509,000 after purchasing an additional 1,040,636 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in McDonald’s by 243.2% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,006,737 shares of the fast-food giant’s stock valued at $173,280,000 after purchasing an additional 713,437 shares during the period. Finally, APG Asset Management N.V. boosted its position in McDonald’s by 22.3% during the 4th quarter. APG Asset Management N.V. now owns 3,709,322 shares of the fast-food giant’s stock valued at $531,686,000 after purchasing an additional 675,700 shares during the period. Institutional investors and hedge funds own 67.53% of the company’s stock.

McDonald’s Company Profile

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.

Analyst Recommendations for McDonald`s (NYSE:MCD)

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