Oppenheimer Weighs in on Mcdonald’s Corp’s Q3 2018 Earnings (NYSE:MCD)

Mcdonald’s Corp (NYSE:MCD) – Stock analysts at Oppenheimer lowered their Q3 2018 earnings per share (EPS) estimates for Mcdonald’s in a report released on Tuesday, October 16th, Zacks Investment Research reports. Oppenheimer analyst B. Bittner now expects that the fast-food giant will earn $1.96 per share for the quarter, down from their previous estimate of $1.98. Oppenheimer also issued estimates for Mcdonald’s’ Q4 2018 earnings at $1.86 EPS, FY2018 earnings at $7.60 EPS, FY2019 earnings at $8.13 EPS and FY2020 earnings at $8.74 EPS.

Mcdonald’s (NYSE:MCD) last announced its quarterly earnings data on Tuesday, October 23rd. The fast-food giant reported $2.10 EPS for the quarter, topping the Zacks’ consensus estimate of $1.99 by $0.11. The company had revenue of $5.37 billion during the quarter, compared to the consensus estimate of $5.28 billion. Mcdonald’s had a net margin of 24.56% and a negative return on equity of 116.43%. Mcdonald’s’s quarterly revenue was down 6.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.76 EPS.

Other equities analysts also recently issued research reports about the stock. Royal Bank of Canada set a $175.00 price target on shares of Mcdonald’s and gave the company a “buy” rating in a report on Thursday, July 26th. Sanford C. Bernstein reiterated a “buy” rating and issued a $195.00 price target on shares of Mcdonald’s in a report on Tuesday, October 23rd. Telsey Advisory Group dropped their target price on shares of Mcdonald’s from $190.00 to $175.00 and set an “outperform” rating for the company in a report on Friday, July 27th. Stifel Nicolaus restated a “neutral” rating and set a $168.00 target price on shares of Mcdonald’s in a report on Monday, August 20th. Finally, Stephens dropped their target price on shares of Mcdonald’s from $170.00 to $165.00 and set an “equal weight” rating for the company in a report on Thursday, July 26th. Seven analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $189.44.

Mcdonald’s stock traded up $0.46 during trading hours on Wednesday, reaching $185.94. 3,236,912 shares of the stock were exchanged, compared to its average volume of 4,998,579. The company has a market cap of $142.04 billion, a P/E ratio of 24.27, a PEG ratio of 2.71 and a beta of 0.53. Mcdonald’s has a 52-week low of $146.84 and a 52-week high of $186.58.

Several institutional investors and hedge funds have recently added to or reduced their stakes in MCD. Ontario Teachers Pension Plan Board raised its stake in shares of Mcdonald’s by 77.7% during the first quarter. Ontario Teachers Pension Plan Board now owns 115,574 shares of the fast-food giant’s stock valued at $18,073,000 after purchasing an additional 50,539 shares during the period. OmniStar Financial Group Inc. raised its stake in shares of Mcdonald’s by 6.1% during the first quarter. OmniStar Financial Group Inc. now owns 14,046 shares of the fast-food giant’s stock valued at $2,196,000 after purchasing an additional 805 shares during the period. Mutual Advisors LLC raised its stake in shares of Mcdonald’s by 20.2% during the first quarter. Mutual Advisors LLC now owns 4,866 shares of the fast-food giant’s stock valued at $761,000 after purchasing an additional 817 shares during the period. Claraphi Advisory Network LLC purchased a new stake in shares of Mcdonald’s during the first quarter valued at approximately $223,000. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management raised its stake in shares of Mcdonald’s by 162.1% during the first quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 4,812 shares of the fast-food giant’s stock valued at $752,000 after purchasing an additional 2,976 shares during the period. 66.92% of the stock is currently owned by institutional investors and hedge funds.

In related news, EVP Francesca A. Debiase sold 15,136 shares of the firm’s stock in a transaction that occurred on Wednesday, October 24th. The shares were sold at an average price of $176.17, for a total value of $2,666,509.12. Following the sale, the executive vice president now directly owns 17,306 shares of the company’s stock, valued at $3,048,798.02. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Stephen Easterbrook sold 201,123 shares of the firm’s stock in a transaction that occurred on Wednesday, October 24th. The stock was sold at an average price of $175.63, for a total transaction of $35,323,232.49. Following the completion of the sale, the chief executive officer now directly owns 48,925 shares in the company, valued at $8,592,697.75. The disclosure for this sale can be found here. Insiders sold 221,041 shares of company stock worth $38,839,407 over the last three months. Corporate insiders own 0.22% of the company’s stock.

The business also recently announced a quarterly dividend, which will be paid on Monday, December 17th. Investors of record on Monday, December 3rd will be given a $1.16 dividend. The ex-dividend date of this dividend is Friday, November 30th. This is a boost from Mcdonald’s’s previous quarterly dividend of $1.01. This represents a $4.64 annualized dividend and a dividend yield of 2.50%. Mcdonald’s’s dividend payout ratio (DPR) is currently 60.66%.

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.

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Earnings History and Estimates for Mcdonald`s (NYSE:MCD)

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