Before the market opens on Monday, the world’s largest fast food chain, McDonald’s Corporation (NYSE:MCD), will report their fourth quarter earnings for last year. As shares trade near all time highs, investors are anxious to see if the company can continue to increase both their top and bottom lines.
Analysts are expecting McDonald’s Corporation (NYSE:MCD) to report an earnings per share of approximately $1.23 for the quarter, on revenue of $6.23 billion. This would compare a $1.22 EPS and $6.57 billion in revenue reported for quarter four of 2014. If the company can put up an earnings beat like the did last quarter, than new all time highs are quite likely this coming week. A miss by more than a few cents, however, could be quite dangerous, as the stock is already trading up significantly since that last report in October.
The stock increased 0.51% or $0.6 on January 22, hitting $118.4. About 9.02 million shares traded hands or up 38.77% from the average. MCD has risen 23.12% since June 18, 2015 and is currently uptrending. It has outperformed the S&P500 by 31.98%.
From a total of 11 analysts covering McDonald’s Corporation (NYSE:MCD) stock, 11 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $130 while the lowest target price is $35. The mean of all analyst targets is $113.79 which is -3.89% below today’s ($118.4) stock price. McDonald’s Corporation was the topic of 22 analyst reports since September 29, 2015 according to the firm StockzIntelligence Inc. Nomura upgraded shares on January 4 to a “Buy” rating. Piper Jaffray upgraded shares to a”Overweight” rating and a $130 target share price in their report from an October 23. Barclays Capital maintained MCD stock in a recent report from November 11 with a “Overweight” rating. SunTrust initiated the rating on October 13. SunTrust has a “Buy” rating and a $117 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Outperform” rating in a report they issued on a November 11.
The institutional sentiment increased to 0.72 in Q2 2015. It’s up 0.11, from 0.61 in 2015Q2. The ratio increased, as 79 funds sold all their McDonald’s Corporation shares they owned while 662 reduced their positions. 92 funds bought stakes while 438 increased their total positions. Institutions now own 567.05 million shares which is 10.07% less than the previous share count of 630.58 million in 2015Q2.
Highfields Capital Management Lp holds 10.24% of its total portfolio in McDonald’s Corporation, equating to 11.78 million shares. Silver Rock Financial Llc owns 144,605 shares representing 8.79% of their total US portfolio. Moreover, Wcg Management L.P. has 8.05% of their total portfolio invested in the company, equating to 181,835 shares. The Tennessee-based Southeastern Asset Management Inc Tn has a total of 7.02% of their portfolio invested in the stock. Covey Capital Advisors Llc, a Georgia-based fund reported 121,470 shares owned.
Since March 13, 2015, the stock had 0 insider buys, and 1 insider sale for a total of $1.21 million in net activity. Goare Douglas M sold 12,050 shares worth $1.21 million. Hoffmann David L sold 979 shares worth $94,317. Mcmillan Cary D sold 1,075 shares worth $105,447. Armario Jose sold 10,000 shares worth $975,800. The insider Sappington James R sold 11,123 shares worth $1.08 million.
McDonald’s Corporation operates and franchises McDonald’s restaurants. The company has a market cap of $108.72 billion. McDonald’s global system comprises both Company-owned and franchised restaurants. It has 25.6 P/E ratio. The Firm manages its business as distinct geographic divisions: the United States ; Europe, and Asia/Pacific, Middle East and Africa (APMEA).