Zacks Investment Research downgraded shares of McDonald’s Corporation (NYSE:MCD) from a buy rating to a hold rating in a research note published on Friday morning.

According to Zacks, “McDonald’s third-quarter adjusted earnings of $1.76 per share beat the Zacks Consensus Estimate by 0.6% and rose 9% year over year. Total revenue of $5.75 billion fell 10% year of year due to refranchising and lagged the consensus mark by nearly 1%. Meanwhile, Q3 marked the ninth consecutive quarters of global comps growth and third consecutive quarter of comparable guest count growth for McDonald’s. Also, shares of the company outpaced the industry over the past six months. Notably, McDonald’s is trying to reinforce its position worldwide via various sales and digital initiatives. Also, increased focus on refranchising is expected to reduce its capital requirements, thereby facilitating EPS growth and ROE expansion in the long run. Yet, higher costs along with currency headwinds may hurt profits. Also, a soft industry backdrop in the United States and macroeconomic concerns in some parts of the world might limit sales growth.”

Other equities analysts have also recently issued reports about the company. Nomura set a $172.00 price objective on McDonald’s Corporation and gave the stock a buy rating in a report on Wednesday, July 19th. Deutsche Bank AG set a $185.00 price objective on McDonald’s Corporation and gave the stock a buy rating in a report on Friday, October 20th. Canaccord Genuity reaffirmed a hold rating and set a $170.00 price objective on shares of McDonald’s Corporation in a report on Friday, October 6th. Wells Fargo & Company set a $185.00 price objective on McDonald’s Corporation and gave the stock a buy rating in a report on Wednesday, October 25th. Finally, Goldman Sachs Group, Inc. (The) set a $174.00 price objective on McDonald’s Corporation and gave the stock a buy rating in a report on Thursday, July 27th. Eleven investment analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company’s stock. McDonald’s Corporation presently has an average rating of Buy and a consensus price target of $169.93.

McDonald’s Corporation (NYSE:MCD) traded up 0.59% during mid-day trading on Friday, hitting $166.36. The stock had a trading volume of 1,547,042 shares. The stock has a 50-day moving average price of $160.28 and a 200 day moving average price of $153.23. McDonald’s Corporation has a 12-month low of $110.83 and a 12-month high of $167.90. The firm has a market cap of $134.75 billion, a P/E ratio of 27.23 and a beta of 0.69.

McDonald’s Corporation (NYSE:MCD) last posted its quarterly earnings results on Tuesday, October 24th. The fast-food giant reported $1.76 EPS for the quarter, beating the consensus estimate of $1.75 by $0.01. The business had revenue of $5.75 billion during the quarter, compared to analysts’ expectations of $5.75 billion. McDonald’s Corporation had a negative return on equity of 252.87% and a net margin of 24.19%. The company’s quarterly revenue was down 10.4% compared to the same quarter last year. During the same period last year, the firm earned $1.62 EPS. Equities analysts anticipate that McDonald’s Corporation will post $6.54 EPS for the current fiscal year.

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The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 15th. Investors of record on Friday, December 1st will be issued a $1.01 dividend. This is a positive change from McDonald’s Corporation’s previous quarterly dividend of $0.94. This represents a $4.04 annualized dividend and a yield of 2.44%. The ex-dividend date is Thursday, November 30th. McDonald’s Corporation’s payout ratio is currently 54.26%.

In other news, EVP David Ogden Fairhurst sold 4,782 shares of the company’s stock in a transaction that occurred on Monday, August 14th. The stock was sold at an average price of $157.05, for a total transaction of $751,013.10. Following the completion of the transaction, the executive vice president now directly owns 6,954 shares of the company’s stock, valued at $1,092,125.70. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 10,793 shares of the company’s stock in a transaction that occurred on Wednesday, August 9th. The shares were sold at an average price of $154.44, for a total value of $1,666,870.92. Following the transaction, the insider now directly owns 7,318 shares of the company’s stock, valued at $1,130,191.92. The disclosure for this sale can be found here. Over the last three months, insiders sold 23,621 shares of company stock valued at $3,745,474. 0.24% of the stock is owned by corporate insiders.

Several large investors have recently bought and sold shares of the company. Proficio Capital Partners LLC grew its holdings in shares of McDonald’s Corporation by 0.7% during the second quarter. Proficio Capital Partners LLC now owns 745 shares of the fast-food giant’s stock valued at $117,000 after purchasing an additional 5 shares during the last quarter. AlphaMark Advisors LLC grew its holdings in McDonald’s Corporation by 0.4% in the 2nd quarter. AlphaMark Advisors LLC now owns 1,288 shares of the fast-food giant’s stock worth $197,000 after buying an additional 5 shares in the last quarter. Highland Private Wealth Management grew its holdings in McDonald’s Corporation by 0.3% in the 2nd quarter. Highland Private Wealth Management now owns 2,182 shares of the fast-food giant’s stock worth $335,000 after buying an additional 6 shares in the last quarter. Winch Advisory Services LLC grew its holdings in McDonald’s Corporation by 0.4% in the 2nd quarter. Winch Advisory Services LLC now owns 1,598 shares of the fast-food giant’s stock worth $245,000 after buying an additional 7 shares in the last quarter. Finally, Valmark Advisers Inc. grew its holdings in McDonald’s Corporation by 0.3% in the 2nd quarter. Valmark Advisers Inc. now owns 2,381 shares of the fast-food giant’s stock worth $365,000 after buying an additional 8 shares in the last quarter. 67.99% of the stock is owned by institutional investors.

About McDonald’s Corporation

McDonald’s Corporation (McDonald’s) operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally relevant menu of food and drinks sold at various price points in over 100 countries. The Company’s segments include U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate.

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Analyst Recommendations for McDonald`s Corporation (NYSE:MCD)

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