Fintel reports that on April 26, 2023, RBC Capital maintained coverage of Mcdonald's (NYSE:MCD) with a Outperform recommendation.

Analyst Price Forecast Suggests 6.48% Upside

As of April 24, 2023, the average one-year price target for Mcdonald's is 310.39. The forecasts range from a low of 277.75 to a high of $348.60. The average price target represents an increase of 6.48% from its latest reported closing price of 291.51.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Mcdonald's is 23,793MM, an increase of 1.62%. The projected annual non-GAAP EPS is 10.57.

• For more in-depth coverage of Mcdonald's, view the free, crowd-sourced company research report on Finpedia.

Mcdonald's Declares $1.52 Dividend

On February 2, 2023 the company declared a regular quarterly dividend of $1.52 per share ($6.08 annualized). Shareholders of record as of March 1, 2023 received the payment on March 15, 2023. Previously, the company paid $1.52 per share.

At the current share price of $291.51 / share, the stock's dividend yield is 2.09%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.38%, the lowest has been 2.05%, and the highest has been 3.65%. The standard deviation of yields is 0.22 (n=237).

The current dividend yield is 1.35 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.65. 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 4041 funds or institutions reporting positions in Mcdonald's. This is an increase of 179 owner(s) or 4.63% in the last quarter. Average portfolio weight of all funds dedicated to MCD is 0.51%, a decrease of 15.87%. Total shares owned by institutions increased in the last three months by 0.67% to 554,817K shares. The put/call ratio of MCD is 1.18, indicating a bearish outlook.

What are Other Shareholders Doing?

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 22,260K shares representing 3.05% ownership of the company. In it's prior filing, the firm reported owning 21,951K shares, representing an increase of 1.39%. The firm increased its portfolio allocation in MCD by 6.96% over the last quarter.

VFINX - Vanguard 500 Index Fund Investor Shares holds 16,932K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 16,678K shares, representing an increase of 1.50%. The firm increased its portfolio allocation in MCD by 6.82% over the last quarter.

Wellington Management Group Llp holds 16,087K shares representing 2.20% ownership of the company. In it's prior filing, the firm reported owning 17,323K shares, representing a decrease of 7.68%. The firm decreased its portfolio allocation in MCD by 0.15% over the last quarter.

Jpmorgan Chase holds 14,907K shares representing 2.04% ownership of the company. In it's prior filing, the firm reported owning 18,722K shares, representing a decrease of 25.59%. The firm decreased its portfolio allocation in MCD by 16.52% over the last quarter.

Bank Of America holds 13,841K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 11,828K shares, representing an increase of 14.55%. The firm increased its portfolio allocation in MCD by 27.37% 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.