Fintel reports that on September 7, 2023, Wells Fargo upgraded their outlook for McDonald`s (NYSE:MCD) from Equal-Weight to Overweight.
Analyst Price Forecast Suggests 21.68% Upside
As of August 31, 2023, the average one-year price target for McDonald`s is 335.16. The forecasts range from a low of 303.00 to a high of $402.15. The average price target represents an increase of 21.68% from its latest reported closing price of 275.44.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for McDonald`s is 23,793MM, a decrease of 1.66%. The projected annual non-GAAP EPS is 10.57.
McDonald`s Declares $1.52 Dividend
On July 25, 2023 the company declared a regular quarterly dividend of $1.52 per share ($6.08 annualized). Shareholders of record as of September 1, 2023 will receive the payment on September 18, 2023. Previously, the company paid $1.52 per share.
At the current share price of $275.44 / share, the stock’s dividend yield is 2.21%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.35%, the lowest has been 2.04%, and the highest has been 3.65%. The standard deviation of yields is 0.23 (n=236).
The current dividend yield is 0.63 standard deviations below the historical average.
Additionally, the company’s dividend payout ratio is 0.55. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.22%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 4067 funds or institutions reporting positions in McDonald`s. This is a decrease of 18 owner(s) or 0.44% in the last quarter. Average portfolio weight of all funds dedicated to MCD is 0.60%, an increase of 2.18%. Total shares owned by institutions decreased in the last three months by 0.00% to 541,877K shares. The put/call ratio of MCD is 0.91, indicating a bullish outlook.
What are Other Shareholders Doing?
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 22,757K shares representing 3.12% ownership of the company. In it’s prior filing, the firm reported owning 22,672K shares, representing an increase of 0.37%. The firm decreased its portfolio allocation in MCD by 1.16% over the last quarter.
VFINX – Vanguard 500 Index Fund Investor Shares holds 17,383K shares representing 2.39% ownership of the company. In it’s prior filing, the firm reported owning 17,091K shares, representing an increase of 1.68%. The firm decreased its portfolio allocation in MCD by 1.68% over the last quarter.
Jpmorgan Chase holds 14,981K shares representing 2.06% ownership of the company. In it’s prior filing, the firm reported owning 14,597K shares, representing an increase of 2.56%. The firm increased its portfolio allocation in MCD by 678.11% over the last quarter.
Geode Capital Management holds 14,227K shares representing 1.95% ownership of the company. In it’s prior filing, the firm reported owning 13,909K shares, representing an increase of 2.23%. The firm decreased its portfolio allocation in MCD by 1.26% over the last quarter.
Wellington Management Group Llp holds 13,220K shares representing 1.81% ownership of the company. In it’s prior filing, the firm reported owning 15,451K shares, representing a decrease of 16.88%. The firm decreased its portfolio allocation in MCD by 12.87% over the last quarter.
McDonald`s Background Information
(This description is provided by the company.)
McDonald’s is the world’s leading global foodservice retailer with over 39,000 locations in over 100 countries. Approximately 93% of McDonald’s restaurants worldwide are owned and operated by independent local business owners.
This article originally appeared on Fintel
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