Brokerages forecast that McDonald's Co. (NYSE:MCD) will report earnings of $1.68 per share for the current fiscal quarter, according to Zacks. Nine analysts have made estimates for McDonald's’ earnings, with estimates ranging from $1.61 to $1.75. McDonald's reported earnings of $1.47 per share during the same quarter last year, which would indicate a positive year-over-year growth rate of 14.3%. The company is expected to report its next earnings results on Tuesday, April 24th.
On average, analysts expect that McDonald's will report full year earnings of $7.65 per share for the current year, with EPS estimates ranging from $7.45 to $7.95. For the next year, analysts expect that the firm will report earnings of $8.31 per share, with EPS estimates ranging from $8.05 to $8.67. Zacks’ EPS calculations are an average based on a survey of analysts that cover McDonald's.
McDonald's (NYSE:MCD) last announced its earnings results on Tuesday, January 30th. The fast-food giant reported $1.71 EPS for the quarter, beating analysts’ consensus estimates of $1.59 by $0.12. McDonald's had a negative return on equity of 217.17% and a net margin of 22.75%. The company had revenue of $5.34 billion during the quarter, compared to analysts’ expectations of $5.22 billion. During the same period last year, the business posted $1.44 EPS. McDonald's’s revenue for the quarter was down 11.4% on a year-over-year basis.
MCD has been the subject of a number of research analyst reports. Zacks Investment Research upgraded McDonald's from a “hold” rating to a “buy” rating and set a $196.00 target price for the company in a report on Thursday, January 18th. Stifel Nicolaus set a $172.00 target price on McDonald's and gave the company a “neutral” rating in a report on Wednesday, January 3rd. Piper Jaffray Companies raised their target price on McDonald's from $175.00 to $185.00 and gave the company an “overweight” rating in a report on Thursday, December 14th. Goldman Sachs Group set a $200.00 target price on McDonald's and gave the company a “buy” rating in a report on Friday, January 19th. Finally, Jefferies Group upgraded McDonald's from a “hold” rating to a “buy” rating and raised their target price for the company from $150.00 to $200.00 in a report on Tuesday, December 5th. Nine investment analysts have rated the stock with a hold rating and twenty-six have given a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $184.95.
In other news, insider Douglas M. Goare sold 34,575 shares of the firm’s stock in a transaction dated Wednesday, January 31st. The stock was sold at an average price of $173.53, for a total transaction of $5,999,799.75. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Catherine A. Hoovel sold 1,398 shares of McDonald's stock in a transaction that occurred on Wednesday, January 31st. The stock was sold at an average price of $170.54, for a total value of $238,414.92. Following the transaction, the vice president now directly owns 1,398 shares in the company, valued at approximately $238,414.92. The disclosure for this sale can be found here. 0.24% of the stock is currently owned by company insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in McDonald's by 1.6% during the second quarter. Vanguard Group Inc. now owns 57,300,686 shares of the fast-food giant’s stock worth $8,776,174,000 after buying an additional 906,303 shares during the period. BlackRock Inc. grew its stake in shares of McDonald's by 0.9% in the 4th quarter. BlackRock Inc. now owns 55,535,177 shares of the fast-food giant’s stock valued at $9,558,713,000 after purchasing an additional 481,739 shares during the last quarter. Capital World Investors grew its stake in shares of McDonald's by 2.8% in the 2nd quarter. Capital World Investors now owns 22,288,104 shares of the fast-food giant’s stock valued at $3,413,646,000 after purchasing an additional 606,232 shares during the last quarter. Capital Research Global Investors grew its stake in shares of McDonald's by 15.0% in the 2nd quarter. Capital Research Global Investors now owns 12,058,661 shares of the fast-food giant’s stock valued at $1,846,905,000 after purchasing an additional 1,572,074 shares during the last quarter. Finally, Northern Trust Corp grew its stake in shares of McDonald's by 3.1% in the 2nd quarter. Northern Trust Corp now owns 11,835,647 shares of the fast-food giant’s stock valued at $1,812,747,000 after purchasing an additional 360,212 shares during the last quarter. 67.23% of the stock is currently owned by institutional investors.
Shares of McDonald's (NYSE MCD) traded up $2.40 during trading on Tuesday, reaching $163.06. The company had a trading volume of 4,209,915 shares, compared to its average volume of 5,010,000. McDonald's has a 12 month low of $126.58 and a 12 month high of $178.70. The stock has a market cap of $129,990.00, a PE ratio of 19.23, a price-to-earnings-growth ratio of 2.37 and a beta of 0.59. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of -8.17.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 15th. Stockholders of record on Thursday, March 1st will be given a dividend of $1.01 per share. This represents a $4.04 annualized dividend and a dividend yield of 2.48%. The ex-dividend date of this dividend is Wednesday, February 28th. McDonald's’s dividend payout ratio (DPR) is presently 47.64%.
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McDonald's Company Profile
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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