McDonald's Quarterly Earnings Report

McDonald's Corporation (NYSE:MCD) announced its earnings results on Monday. The fast-food leader reported earnings per share of $2.83 for the quarter, which aligned with analysts' expectations. McDonald's recorded a net margin of 31.79% and a notably negative return on equity of 175.42%.

Stock Performance

On Monday, shares of McDonald's opened at $294.39. Over the past twelve months, the stock has seen a low of $243.53 and a high of $317.90. Its fifty-day simple moving average stands at $290.70, while the 200-day simple moving average is at $290.89. Currently, the company has a market capitalization of approximately $210.97 billion, with a price-to-earnings (P/E) ratio of 25.85 and a P/E to growth (P/E/G) ratio of 4.08. The beta for the stock is 0.74, indicating lower volatility compared to the market.

Dividend Declaration

McDonald's also declared a quarterly dividend, set to be paid on March 17th. Shareholders of record as of March 3rd will receive a dividend of $1.77 per share, translating to an annualized dividend of $7.08 and a dividend yield of 2.40%. The ex-dividend date is also March 3rd, and the company's payout ratio is noted at 62.16%.

Analyst Ratings and Forecasts

Several Wall Street analysts have shared their outlook on McDonald's stock. KeyCorp adjusted its price target down from $330.00 to $320.00, maintaining an "overweight" rating. On the other hand, Robert W. Baird downgraded their rating from "outperform" to "neutral", with a price target reduced from $320.00 to $290.00. Barclays increased its target price from $300.00 to $325.00 while keeping an "overweight" rating. Guggenheim also downgraded McDonald's from a "buy" to a "neutral" rating with a lowered price target from $290.00 to $285.00. Additionally, BMO Capital Markets raised their target price from $315.00 to $335.00, maintaining an "outperform" rating. Overall, nine analysts rated the stock as hold, and sixteen recommended it as a buy. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $318.86.

Insider Transactions

Recent insider activity includes a sale by Executive Vice President Desiree Ralls-Morrison, who sold 3,409 shares on December 30th at an average price of $290.15, totaling approximately $989,121.35. After this sale, Morrison possesses 9,675 shares valued at around $2,807,201.25, reflecting a 26.05% decrease in ownership. Furthermore, insider Joseph M. Erlinger sold 1,099 shares on November 25th for about $321,457.50, resulting in a 10.58% decline in his holding. In total, insiders have sold 7,406 shares within the last three months, amounting to $2,150,857, with only 0.23% of the stock currently held by insiders.

About McDonald's

McDonald's operates and franchises a global network of restaurants, organized into several segments, including U.S. operations, International Operated Markets, and International Developmental Licensed Markets. The U.S. segment is focused solely on domestic operations, while the International Operated Markets include countries such as Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the U.K.

McDonald's, Earnings, Stocks