Vetr upgraded shares of McDonald’s Co. from a hold rating to a buy rating and set a $100.92 price target for the company in a research note on Monday, July 27th. The stock resumed amid volatile trading, and is up on the session.
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Analysts at Credit Suisse upped their price target on McDonald’s (MCD – Get Report) stock to $128 from $118 on Wednesday morning. Institutional Investors own 67.16% of McDonalds Corporation shares.
As for financial updates, Easterbook said the company’s board has authorized a 5% increase in its quarterly dividend.
News of McDonald’s creating a REIT to tap into the value of its property holdings may have created quite an interesting buzz. As part of the update, it boosted its net annual general and administrative expense savings target to $500 million, the vast majority of which the chain will realize by end of 2017.
At today’s close, McDonald’s was up about 0.3%.
But McDonald’s stock was little-changed after the announcement. The stock has a market cap of $104.54 billion and a P/E ratio of 24.65. The firm’s 50-day moving average is $105.37 and its 200 day moving average is $99.26. The posting of solid third quarter earnings came with a confirmation of an increase in payouts to investors. The company had revenue of $6.62 million for the quarter, compared to the consensus estimate of $6.41 billion. Equities analysts forecast that McDonald’s Co. will post $4.86 earnings per share for the current fiscal year. The next dividend is payable on December 15 to shareholders on record as of December 1. This represents a $3.56 dividend on an annualized basis and a dividend yield of 3.13%. McDonald’s Co. has a 12 month low of $87.50 and a 12 month high of $114.99. The company collects rents from franchisees and those payments increased 26% from 2009 to 2014.
Food chain aims to own 95% franchised stores to become cost efficient in long term. The Company manages its business as distinct geographic segments: the Usa (NYSE:MCD); Europe, and Asia/Pacific, Middle East and Africa (APMEA). The Company’s operations in Canada and Latin America, in addition to its Corporate activities are reported under Corporate & Other Countries. The Firm’s restaurants provide a substantially uniform menu, including burgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, McCafe beverages and other beverages.
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McDonald’s said Tuesday it would keep its real-estate assets, including restaurants, and increase the number of its franchised restaurants as it pursues a belt-tightening restructuring.
