Should You Invest in McDonald’s Corp (MCD) Now?

McDonald’s Corp (NYSE: MCD) has a higher price-to-earnings ratio of 27.83x compared to its average ratio, The 36-month beta value for MCD is at 0.55. Analysts have varying views on the stock, with 17 analysts rating it as a “buy,” 7 rating it as “overweight,” 14 as “hold,” and 0 as “sell.”

The public float for MCD is 714.82M, and currently, shorts hold a 1.60% of that float. The average trading volume for MCD on April 22, 2025 was 3.84M shares.

MCD) stock’s latest price update

McDonald’s Corp (NYSE: MCD)’s stock price has plunge by 2.69relation to previous closing price of 308.72. Nevertheless, the company has seen a 0.31% surge in its stock price over the last five trading sessions. seekingalpha.com reported 2025-04-18 that McDonald’s plans to reach 50,000 locations by 2027, focusing on franchised restaurants with higher margins, boosting overall profitability. The company’s value proposition targets low-income consumers with successful initiatives like the $5 Meal Deal and “Buy One, Add One for $1” offer. McDonald’s capital allocation is solid, returning over 100% of free cash flow to shareholders through dividends and share buybacks, supported by strategic debt use.

MCD’s Market Performance

McDonald’s Corp (MCD) has seen a 0.31% rise in stock performance for the week, with a 3.80% gain in the past month and a 12.18% surge in the past quarter. The volatility ratio for the week is 2.03%, and the volatility levels for the past 30 days are at 2.55% for MCD. The simple moving average for the past 20 days is 2.41% for MCD’s stock, with a 8.28% simple moving average for the past 200 days.

Analysts’ Opinion of MCD

Many brokerage firms have already submitted their reports for MCD stocks, with KeyBanc Capital Markets repeating the rating for MCD by listing it as a “Overweight.” The predicted price for MCD in the upcoming period, according to KeyBanc Capital Markets is $340 based on the research report published on March 27, 2025 of the current year 2025.

Citigroup, on the other hand, stated in their research note that they expect to see MCD reach a price target of $334, previously predicting the price at $311. The rating they have provided for MCD stocks is “Buy” according to the report published on January 10th, 2025.

Robert W. Baird gave a rating of “Neutral” to MCD, setting the target price at $290 in the report published on October 23rd of the previous year.

MCD Trading at 2.97% from the 50-Day Moving Average

After a stumble in the market that brought MCD to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -2.85% of loss for the given period.

Volatility was left at 2.55%, however, over the last 30 days, the volatility rate increased by 2.03%, as shares surge +3.68% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.69% upper at present.

During the last 5 trading sessions, MCD rose by +0.27%, which changed the moving average for the period of 200-days by +26.77% in comparison to the 20-day moving average, which settled at $309.56. In addition, McDonald’s Corp saw 9.36% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at MCD starting from Erlinger Joseph M., who sale 939 shares at the price of $306.30 back on Mar 24 ’25. After this action, Erlinger Joseph M. now owns 13,039 shares of McDonald’s Corp, valued at $287,616 using the latest closing price.

JOSEPH ERLINGER, the Officer of McDonald’s Corp, proposed sale 939 shares at $305.44 during a trade that took place back on Mar 24 ’25, which means that JOSEPH ERLINGER is holding shares at $286,808 based on the most recent closing price.

Stock Fundamentals for MCD

Current profitability levels for the company are sitting at:

  • 0.45 for the present operating margin
  • 0.57 for the gross margin

The net margin for McDonald’s Corp stands at 0.32. The total capital return value is set at 0.23.

Based on McDonald’s Corp (MCD), the company’s capital structure generated 1.08 points at debt to capital in total, while cash flow to debt ratio is standing at 0.18. The debt to equity ratio resting at -13.68. The interest coverage ratio of the stock is 7.78.

Currently, EBITDA for the company is 13.95 billion with net debt to EBITDA at 3.65. When we switch over and look at the enterprise to sales, we see a ratio of 10.72. The receivables turnover for the company is 10.88for trailing twelve months and the total asset turnover is 0.47. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.19.

Conclusion

In conclusion, McDonald’s Corp (MCD) has had a better performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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