Analysts Set Expectations for McDonald’s FY2024 Earnings

McDonald’s Co. (NYSE:MCD) – Analysts at Zacks Research lowered their FY2024 EPS estimates for McDonald’s in a note issued to investors on Tuesday, November 12th. Zacks Research analyst H. Ray now anticipates that the fast-food giant will earn $11.72 per share for the year, down from their prior estimate of $11.74. The consensus estimate for McDonald’s’ current full-year earnings is $11.77 per share. Zacks Research also issued estimates for McDonald’s’ Q4 2024 earnings at $2.82 EPS, Q1 2025 earnings at $2.73 EPS, Q3 2025 earnings at $3.37 EPS, Q4 2025 earnings at $3.14 EPS, FY2025 earnings at $12.37 EPS, Q1 2026 earnings at $3.00 EPS and Q2 2026 earnings at $3.46 EPS.

Other equities analysts have also recently issued reports about the company. Wedbush reiterated an “outperform” rating and set a $295.00 price target on shares of McDonald’s in a report on Wednesday, October 23rd. Stifel Nicolaus lowered their target price on shares of McDonald’s from $285.00 to $265.00 and set a “hold” rating for the company in a research note on Monday, July 22nd. The Goldman Sachs Group lifted their price target on shares of McDonald’s from $284.00 to $325.00 and gave the company a “neutral” rating in a research report on Tuesday, September 24th. Wells Fargo & Company increased their price objective on shares of McDonald’s from $285.00 to $350.00 and gave the stock an “overweight” rating in a research report on Monday, October 21st. Finally, TD Cowen reissued a “hold” rating and issued a $300.00 target price on shares of McDonald’s in a research report on Tuesday, October 29th. Thirteen analysts have rated the stock with a hold rating and eighteen have issued a buy rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $319.46.

McDonald’s Stock Performance

Shares of McDonald’s stock opened at $292.52 on Thursday. McDonald’s has a fifty-two week low of $243.53 and a fifty-two week high of $317.90. The firm has a market capitalization of $209.63 billion, a price-to-earnings ratio of 25.68, a PEG ratio of 3.95 and a beta of 0.74. The stock has a 50 day moving average of $300.00 and a 200 day moving average of $277.29.

McDonald’s (NYSE:MCD) last posted its quarterly earnings results on Tuesday, October 29th. The fast-food giant reported $3.23 earnings per share for the quarter, beating the consensus estimate of $3.18 by $0.05. The business had revenue of $6.87 billion during the quarter, compared to analysts’ expectations of $6.82 billion. McDonald’s had a net margin of 31.79% and a negative return on equity of 175.42%. The business’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.19 EPS.

McDonald’s Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be issued a $1.77 dividend. This is a boost from McDonald’s’s previous quarterly dividend of $1.67. The ex-dividend date is Monday, December 2nd. This represents a $7.08 annualized dividend and a dividend yield of 2.42%. McDonald’s’s dividend payout ratio is presently 58.65%.

Insider Activity at McDonald’s

In related news, CMO Edith Morgan Flatley sold 2,346 shares of the company’s stock in a transaction dated Monday, October 14th. The stock was sold at an average price of $310.00, for a total value of $727,260.00. Following the completion of the sale, the chief marketing officer now directly owns 2,905 shares of the company’s stock, valued at $900,550. This represents a 44.68 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Marion K. Gross sold 1,499 shares of the firm’s stock in a transaction that occurred on Friday, November 1st. The stock was sold at an average price of $294.51, for a total value of $441,470.49. Following the transaction, the executive vice president now owns 1,560 shares in the company, valued at $459,435.60. This represents a 49.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 35,596 shares of company stock valued at $10,698,289 in the last ninety days. Insiders own 0.23% of the company’s stock.

Institutional Trading of McDonald’s

Institutional investors and hedge funds have recently bought and sold shares of the business. Hantz Financial Services Inc. acquired a new stake in shares of McDonald’s during the second quarter worth about $6,612,000. Kennebec Savings Bank acquired a new stake in McDonald’s during the 3rd quarter worth approximately $1,394,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its stake in shares of McDonald’s by 58.9% during the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 138,102 shares of the fast-food giant’s stock worth $35,194,000 after purchasing an additional 51,210 shares during the last quarter. U.S. Capital Wealth Advisors LLC raised its stake in shares of McDonald’s by 6.5% during the third quarter. U.S. Capital Wealth Advisors LLC now owns 49,186 shares of the fast-food giant’s stock worth $14,978,000 after purchasing an additional 2,997 shares during the last quarter. Finally, Quintet Private Bank Europe S.A. lifted its holdings in shares of McDonald’s by 17.1% during the third quarter. Quintet Private Bank Europe S.A. now owns 49,318 shares of the fast-food giant’s stock worth $15,018,000 after purchasing an additional 7,200 shares during the period. Hedge funds and other institutional investors own 70.29% of the company’s stock.

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.